PlanningPlanningCommercialClass EHigh Street

The 2020 Class E Revolution

In 2020, the government scrapped decades of commercial planning rules, merging shops, offices, cafes, and gyms into a single 'Class E' use class to save the high street.

Share: Post Share Share

For decades, commercial property in the UK was rigidly categorised. A retail shop was A1, a financial service office was A2, a cafe was A3, and a standard office was B1. Changing a property from an office to a cafe required a time-consuming full planning application, stifling high street regeneration.

The Birth of Class E

In September 2020, the government enacted the most radical deregulation of commercial property in modern history. They abolished the old 'A' and 'B' classes and merged them all into a single, broad Class E (Commercial, Business and Service). Under Class E, a building can switch fluidly between being a shop, an office, a restaurant, a gym, or a medical clinic without requiring any planning permission for the change of use.

This flexibility fundamentally changed commercial property investment. Landlords are no longer restricted to a narrow pool of tenants. An empty high-street shop can be immediately leased to a boutique gym or a co-working space, keeping the commercial market fluid and protecting capital values in the face of declining traditional retail.

Test your knowledge

What does 'CIL' (Community Infrastructure Levy) represent in property development?

Share: Post Share Share