Class MA permitted development — what it covers
- Qualifying buildings — Class E uses: Class MA applies to buildings in Use Class E — offices, retail, restaurants, gyms, crèches, and light industrial uses. Class MA replaced the previous Classes O and PA rights
- No upper floorspace limit: any size of Class E building can in principle be converted under Class MA, subject to prior approval criteria
- 3-month vacancy requirement: the building must have been vacant for at least 3 months immediately before the prior approval application
- Excluded buildings: listed buildings, SSSIs, AONBs, national parks, safety hazard areas, military explosives zones
- Article 4 directions: LAs in high-demand areas and employment protection zones may have removed Class MA rights — always check before purchasing
Prior approval — the mandatory process
- Prior approval criteria: transport/highways, contamination, flooding, noise from commercial uses, adequate natural light, air quality, design, and (in London) fire safety
- Application fee: £120 per dwelling to be created (minimum £120), submitted to the district/borough council
- 8-week determination period: LPA must determine within 8 weeks — if they fail to do so, prior approval is deemed granted
- LPA can refuse: common refusal grounds include inadequate natural light, unacceptable noise, flood risk, and contamination
- Nationally Described Space Standards: not automatically required under Class MA but many LPAs require compliance as a condition
Article 4 directions
Many central London boroughs and employment protection zones have removed Class MA permitted development rights using Article 4 directions. Always confirm with the local planning authority before purchasing a commercial building in reliance on Class MA PD rights.
Building regulations — separate from planning
- Mandatory compliance: all conversions require building regulations approval — separate from and additional to planning/prior approval
- Key requirements: structural stability (Part A), fire safety (Part B), thermal insulation (Part L), acoustic separation (Part E), ventilation (Part F), drainage (Part H), and accessibility (Part M)
- Building Safety Act 2022: for buildings over 18 metres or 7+ storeys, the higher-risk building regime applies — registration, responsible person, safety case, resident engagement
- EPC on completion: each converted unit requires an EPC — minimum EPC D for conversions, though C or above is preferred by BTL mortgage lenders
Tax and VAT for commercial conversions
- 5% VAT on conversion works: conversion of commercial to residential attracts the 5% reduced VAT rate on construction works — not the standard 20%
- SDLT at non-residential rates on acquisition: purchasing a commercial building uses non-residential SDLT rates (0%/2%/5%) — substantially lower than residential rates
- Capital allowances: may be claimable on commercial fixtures at purchase — but these are lost once the building is converted to residential use
- CGT on disposal of converted units: residential property CGT rates apply (18%/24%) on sale of converted units after 30 October 2024