The Use Class E Order was introduced as a transformative initiative aimed at supporting commercial businesses in a post-pandemic world. By merging various use classes into one category, the order offers greater flexibility to businesses and equips them to adapt to rapidly changing market demands. If you’re a Class E property owner, here’s everything you need to know about regulations, licensing, and compliance.
Creation of Use Class E
In September 2020, the UK government introduced Class E, consolidating several use classes under a single category:
- A1 (Shops): Retail warehouses, salons, travel agencies, pet shops, etc.
- A2 (Financial Services): Banks, employment agencies, professional services.
- A3 (Food & Drink): Restaurants, cafes, snack bars.
- D1 (Non-residential institutions)
- D2 (Assembly & leisure facilities)
The primary objective was to provide businesses with flexibility, reduce legal distinctions, and stimulate economic recovery following the pandemic’s adverse effects.
Key Benefits of Class E
- Change of Use Without Planning Permission: Businesses within the same category (e.g., retail to cafe) can adapt without requiring approval.
- Broader Commercial Scope: From shops and restaurants to gyms and research facilities, the versatility of Class E covers most commercial properties.
However, businesses falling under the Sui Generis list—such as nightclubs, hot food takeaways, or betting shops—are exempt and require planning permission for changes.
Licensing and Permits for Class E
While planning permission may not be necessary for changes within Class E, licenses and permits are still required:
- Food Hygiene Certificates
- Applicable for businesses like restaurants and cafes.
- Certificates must be updated every 3 years, although there is no fixed expiration in the UK.
- Financial Services Licensing
- Electronic Money Institution (EMI) License: For businesses managing virtual wallets or prepaid card services.
- Payment Institution (PI) License: Ensures secure digital transactions.
- Money Remittance License: Allows cross-border fund transfers.
- Health and Safety Certificates
Every commercial property must meet legal safety standards, including:
- Energy Performance Certificate (EPC)
- Gas Safety Certificate
- Electrical Safety Certificate
- Fire Safety Assessment
Contact Studio20 Architects for licensing guidance and compliance
Class E Order: Regulations and Requirements
- Change of Use Rules
- Businesses can switch functions (e.g., retail to gym) within Class E without planning permission.
- Commercial to Residential Conversions require Use Class MA and prior approval.
- Conditions for Residential Conversion
- Property must be in Class E use for 2+ years.
- Conversions are prohibited in areas of outstanding natural beauty, national parks, and other protected zones.
- Heritage Impact Assessments are necessary for conservation areas.
Conclusion
The Class E Order marks a pivotal shift in UK’s planning system, offering property owners and businesses unparalleled flexibility. While this reduces certain bureaucratic hurdles, understanding licensing, regulations, and compliance essentials remains critical.
At Studio20 Architects, we have the expertise to navigate these complexities, ensuring your project adheres to all legal and technical requirements. Let us help you maximize your property’s potential.
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