Receivership Update: Planning January 2021
On 3 December 2020, the Government launched a consultation on a new Permitted Development Right (PDR) which would allow commercial, business and services uses within Use Class E (Commercial, Business and Services Uses), to be converted to residential dwellings.
The new PDR would allow any building in Class E use on 1 September 2020 to change to residential through the prior approval process. Surprisingly, the consultation sets out very few restrictions on what buildings could qualify. It could even enable the change of use of buildings that would otherwise be unlikely to be approved through a conventional planning application.
KEY BENEFITS INCLUDE:
- No requirement to provide affordable housing.
- The statutory timescale for a decision is 8 weeks – compared to 13 weeks for major applications in a full planning submission.
- No size limit on the buildings that can benefit from the PDR.
- The PDR would be allowed in Conservation Areas
The consultation is open until the 28 January 2021, and the Government is welcoming comments on the proposals via the consultation website.
We will have to wait to see if existing Article 4 Directions (within which zoned land is excluded from PD rights) will apply or not for this new PDR. It is not clear in the information that has been published yet.
On initial reading of the consultation implies that in theory, one could convert a shop on Oxford Street to residential under the new PD right. As you can imagine, there are potentially huge implications from this, and at the same time opportunities for your borrowers.
If the PD right comes through the consultation unscathed, the right will apply from 1 August 2021.
Many of our receivership cases have planning issues such as unexplored potential, incomplete applications and outstanding enforcement proceedings. We work with several planning consultancy firms to resolve these matters.
The Receivership team were busy during the lockdowns and restrictions in 2020 and the team doubled in personnel during that time. 2021 has also started busy with enquiries from several lenders. We are happy to discuss with lenders any loans that are causing difficulties.
Please get in touch with our Receivership team with any questions.