This update looks at the government's latest announcement and their proposal to enable Offices to be converted into homes.

We highlight some key elements you should be aware of and things you should be doing to maximise the value of your assets.

What is the change?

The change will allow use of buildings to be changed from B1 (a) Office use to a Residential use without the need for a formal planning permission. Permission will be granted automatically subject to the prior approval regime under the Permitted Development regime.

The changes are essentially a conversion right and does not provide the ability to change the structure of the building (planning permission is still stated as being required for works). We would suggest that staged processes to deal with this particular issue may be available and we believe it will be possible to secure both the change of use and the change to the buildings in due course.

The specific details in terms of the regulations have not yet been issued and it is not clear how empty/underused buildings will be defined. A previous consultation suggested what this might mean but that has yet to be confirmed.

Are there any exemptions/exceptions to the right?

As stated above there is no right to carry out works to a building where planning permission would be required for those works.

The prior approval process will prevent conversion proposals to be refused on specified grounds for example if there are significant highway and transport impacts.

When will the right come into force?

The government has stated that the changes will come into effect in spring 2013.

Are there any time limits?

The rights are intended to apply for three years only and will thereafter be reviewed. In the event that you wish to secure the benefit of the conversion rights, but the use rights cannot actually be implemented because building works (needing permission) are required, landowners/ developers should proceed as soon as possible taking early advice and planning to secure all permissions to effect the conversion within the three year time limit.

Will local authorities be able to prevent the change?

Local authorities have until the 22nd February 2013 to apply for a central government exemption for areas they consider sufficiently important for such protection. The City of London has already indicated it intends to seek such an exemption and press releases would suggest that this has already been agreed between the City and the Government.

Local authorities will still be permitted to exclude areas under their general powers under the permitted development regime, whereby they can make what is known as an Article 4 direction exempting such benefits from applying to specified areas. A number of local authorities have already gone to press stating their intention to exercise these powers preventing large areas from benefiting from these changes. There are rights to object to the making of these orders and early advice should be taken if your properties are likely to be affected and you might lose the benefit of the conversion rights.

Things you should be considering now?

  • Consider swiftly whether there are B1 offices which you want to benefit from the conversion rights. In the event this is the case, watch out for any proposals by your local authorities to withdraw permitted development rights in your area. If there are such proposals, take advice and consider objecting.
  • If you own an office building where you are likely to require changes to the external fabric of the building, again take advice. Consider a staged process of securing conversion rights first, followed by works to the building.
  • If you own an office building, which is in use and which is unable to benefit from the conversion changes and/ or you intend to continue using those offices and are concerned about neighbouring redundant/underused offices being converted to residential uses, watch out for any prior approval notification by the local authority. Alternatively write to the local authority asking to be informed of any applications under the prior approval regime in your area so that you become aware of such applications before time limits run out.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.