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.
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.