Commercial to Residential Conversion in London: Planning, Costs and Process

Converting commercial premises to residential use in London has become an increasingly important route to creating new homes in a city with acute housing pressures. Changes to Permitted Development rights over the past decade have made it significantly easier to convert certain types of commercial space to residential use without a full planning application, subject to prior approval from the local planning authority.

Class MA of the Permitted Development Order currently allows the conversion of commercial premises (Class E — which covers offices, shops, restaurants, gyms, and most other commercial uses) to residential use (Class C3 dwellings) without a full planning application, subject to a prior approval process. This represents a significant simplification compared to the previous regime, which required separate classes for office conversion and retail conversion.

The prior approval process under Class MA requires a formal application to the local planning authority, which considers: flooding risk, contamination risk, transport and highway impacts, provision of adequate natural light in the new residential units, and — in some areas — the impact on local businesses. The local authority has 56 days to make its prior approval decision. If it does not decide within 56 days, the conversion may proceed.

Important restrictions apply. Class MA cannot be used in a location that is subject to an Article 4 direction removing Class MA PD rights — many London boroughs have implemented Article 4 directions to protect commercial premises in areas of employment importance. Prior approval cannot be used if the building is listed. The building must have been in commercial use for a continuous period of at least two years immediately before the application. The floor area of the commercial premises being converted must not exceed 1,500 square metres.

Where Class MA prior approval is not available (due to Article 4 direction, listing, or floor area), a full planning application for change of use is required. The application is assessed against the development plan, including policies protecting commercial uses in employment areas.

The construction works required for a commercial to residential conversion depend on the starting condition of the building and the number of residential units being created. Typical works include: structural alterations to create residential floor layouts, M&E installation (heating, water, drainage, ventilation), insulation to current residential Building Regulations standards, fire compartmentalisation between units, new windows where required, and external works where needed for residential use.

Building Regulations compliance for a commercial to residential conversion is required regardless of whether planning permission was needed. The conversion must comply with all relevant Parts of the Building Regulations including structure, fire, energy efficiency, ventilation, drainage, and accessibility.

RCB manages commercial to residential conversion projects across London as part of our principal contractor delivery service. +44 7359 872594 | connect@rcbGroup.co.uk | www.rcbGroup.co.uk