Key facts at a glance

  • Use Classes Order 2020: Class E (commercial), C3 (residential), sui generis
  • Class MA Prior Approval: commercial to residential (conditions apply)
  • Many London boroughs have Article 4s blocking Class MA in town centres
  • Full planning fee: £578 per dwelling; Prior Approval: £120 per dwelling
  • CIL deductible if building in lawful use for 6+ months in past 3 years
  • Our change of use drawings from £1,750

The Use Classes Order 2020

The Town and Country Planning (Use Classes) (Amendment) (England) Regulations 2020, which came into force on 1 September 2020, fundamentally restructured the Use Classes Order. The most significant change was the creation of Class E, which merged what were previously separate use classes for shops (A1), restaurants (A3), offices (B1), light industry (B1c), gyms (D2), health centres (D1), creches (D1), and other commercial uses into a single, broad class.

This means that changes of use within Class E do not require planning permission -- a shop can become a gym, an office can become a restaurant, and a light industrial unit can become a creche, all without any planning application. The planning significance arises when you want to change between classes -- particularly from commercial use (Class E) to residential use (Class C3).

Use ClassDescriptionExamples
Class ECommercial, business & serviceShops, restaurants, offices, light industry, gyms, health centres, creches
Class F.1Learning & non-residential institutionsSchools, museums, galleries, libraries, churches
Class F.2Local communityCommunity halls, small local shops (<280 sqm)
Class C1HotelsHotels, boarding houses, guest houses
Class C3Dwelling housesHouses, flats (single household or up to 6 people living as single household)
Class C4HMOs (small)Shared houses for 3-6 unrelated people
Sui generisIn a class of its ownPubs, cinemas, theatres, hot food takeaways, petrol stations, large HMOs (7+)

Class MA: commercial to residential via Prior Approval

Class MA of Part 3 of the GPDO allows the change of use from Class E (commercial) to Class C3 (residential) through the Prior Approval process. This is a lighter-touch process than a full planning application -- the council can only assess the proposal against a limited number of criteria, and if those criteria are met, approval cannot be refused.

Conditions for Class MA

What the council assesses (Prior Approval matters)

The council can only consider the following matters when determining a Class MA Prior Approval application:

The Prior Approval fee is £120 per dwelling -- significantly lower than the £578 per dwelling for a full planning application. There is also no affordable housing requirement under Class MA, even if the scheme creates 10 or more units. These are substantial financial advantages that make Class MA the preferred route where it is available.

Article 4 Directions blocking Class MA in London

Many London boroughs have introduced Article 4 Directions specifically to remove Class MA rights in town centres, high streets, and designated shopping frontages. This reflects concern about losing commercial activity and local services. Boroughs with significant Article 4 Directions affecting Class MA include Westminster, Camden, Islington, Hackney, Tower Hamlets, and Southwark, among others. Where an Article 4 is in place, a full planning application is required instead.

Full planning applications for change of use

Where Class MA does not apply -- because the building is in an Article 4 area, the use does not qualify, or the building exceeds the floor area threshold -- you need to submit a full planning application for the change of use.

What you need to submit

Key policy considerations

Borough planning officers assess full change-of-use applications against local plan policies. The key issues are:

Building Regulations for change of use

Converting a commercial building to residential use is a "material change of use" under Regulation 5 of the Building Regulations 2010. The building must be brought up to current residential standards in all relevant areas:

CIL and affordable housing

Community Infrastructure Levy

CIL is calculated on net additional residential floor area. For change-of-use conversions, the existing lawful floor area is usually deductible if the building has been in continuous lawful use for at least 6 months within the 3 years before planning permission is granted. For a straightforward conversion of a shop or office to flats with no extension, this often means zero CIL, because the existing floor area equals the proposed residential floor area. However, if you add floor area (e.g., a rooftop extension), the additional area will attract CIL.

Affordable housing contributions

For full planning applications creating 10 or more dwellings, affordable housing is required under the London Plan and local plan policies. The standard requirement in most London boroughs is 35% of units as affordable housing (typically split between social rent and intermediate tenure). For Class MA Prior Approval, there is no affordable housing requirement regardless of the number of units -- this is a significant financial benefit that can be worth hundreds of thousands of pounds on larger schemes.

Change of use costs in London

Typical cost comparison: Prior Approval vs full planning

Our drawings (change of use)From £1,750
Prior Approval fee (per dwelling)£120
Full planning fee (per dwelling)£578
Building control fee£500–£1,500
Noise assessment (if needed)£800–£2,000
Build costs (per sqm, fit-out)£1,200–£2,500
CIL (net additional area only)Often £0

Our change of use drawing package from £1,750 includes the measured survey, existing and proposed floor plans, Design and Access Statement, and the application submission. For larger schemes, we provide a full package including elevations, section drawings, and supporting statements. Get a free quote.

Frequently asked questions

What are the Use Classes in England?

The Use Classes Order 2020 groups uses into classes: Class E (commercial -- shops, restaurants, offices, gyms, light industry), Class C3 (dwelling houses), Class C4 (small HMOs), and sui generis (pubs, theatres, takeaways, large HMOs). Changes within the same class generally do not need planning permission. Changes between classes usually do. See our planning service.

Can I convert a shop to a flat in London without planning permission?

Potentially, via Class MA Prior Approval. The building must have been in Class E use for 2+ years, the floor area must not exceed 1,500 sqm, and the site must not be in an area where the borough has issued an Article 4 Direction removing the right. Many London boroughs have blocked Class MA in town centres. We check eligibility and handle the Prior Approval application. Get a free quote.

How much does a change of use application cost?

Prior Approval under Class MA costs £120 per dwelling. Full planning costs £578 per dwelling. Our drawing packages start from £1,750 including measured survey, floor plans, supporting statements, and application submission. Total professional costs are significantly lower than most architect practices -- 30% below typical London rates.

Do I need to pay CIL on a change of use?

CIL is payable on net additional residential floor area only. If the building has been in lawful use for 6+ months in the past 3 years, the existing floor area is deducted. For a straightforward conversion with no extension, CIL is often zero. We advise on CIL liability and help you complete the CIL forms correctly.

What is affordable housing and does it apply to change of use?

Affordable housing contributions apply to full planning applications creating 10+ dwellings (typically 35% in London). For Class MA Prior Approval, there is no affordable housing requirement regardless of the number of units -- a key financial advantage. We advise on the best route for your scheme to minimise costs and maximise certainty.

Last updated: April 2026