DCLG has launched a consultation entitled "New opportunities for sustainable development and growth through reuse of existing buildings" which, if enacted, will make it possible for a change of use from hotel (Class C1) to residential dwellinghouse (Class C3) without the need for planning permission.

The aim of the consultation is to explore measures to bring empty and redundant buildings back into productive use and to boost the numbers of new homes delivered each year.

Such new permitted development rights may increase land values particularly for those hotels where a conversion could be achieved without any additional development work.  This is not only because of the ability to change to a C3 use, but further because it would be possible to do so without planning obligations under a s106 agreement and without having to provide any affordable element.  Where additional development (e.g. external physical alterations) is required to effect a conversion, planning permission would still be required in the usual way.

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The original publication date for this article was 18/07/2012.