London boroughs follow suit in introducing Article 4s to stop residential conversions

In July we wrote about the NPPF changes which seek to make it harder for councils to introduce wide-sweeping Article 4 Directions.

Many councils have, however, now set out their intention to use Article 4s, to withdraw permitted development rights and prevent the conversion of Class E commercial space to residential, citing concerns that the loss of business space would harm economic activity and would lead to the building of poor-quality homes in the wrong places. In the absence of an Article 4, the conversion of commercial space to residential could be achieved without the need for a planning application, through the Class MA prior approval process.

Some have ignored the NPPF changes, and Kensington and Chelsea, for instance, have essentially blanketed their entire boroughs with Article 4s. Other London boroughs have restricted them to town centres and employment areas, with those taking action including Westminster, the City of London, Tower Hamlets, Camden, Lambeth, Wandsworth, Kingston and Richmond, to name but a few.

These non-immediate Article 4s will only come into force from the end of July 2022 (one year on from Class MA taking effect) to allow for consultation and to avoid any compensation claims. The Secretary of State has the power to approve or reject Article 4 Directions on a case-by-case basis, but it is not clear how the newly appointed Mr Gove intends to handle these exemptions.

There is much debate in the industry about the effectiveness of Class MA in helping to solve the housing crisis, and the potentially harmful consequences of the loss of commercial units, especially in town centres. We should also be mindful of the strain imposed on LPA resources, as they have to prioritise these conversions ahead of major residential planning applications.

I, for one, believe conversions are a good thing for retail and small business spaces which have been vacant for long periods of time and need some instant life and regeneration, particularly where there is a dire need for new homes. However, I do have my concerns that it could lead to large gaps in the high street, affecting footfall and town centre vitality and vibrancy, and therefore I support the introduction of Article 4s in some places.

We have received a lot of interest from clients exploring what they can do with their assets. It appears the floodgates will be open until the end of July 2022, for conversion applications that can be implemented through the prior approval route.

If you do have any queries regarding Class E to residential permitted development rights, feel free to get in touch with Planning Potential to discuss your options.