Spotlight on Permitted Development: Use Class G

Spotlight on Permitted Development: Use Class G

At BB Partnership Limited we often work with investors, developers and landlords who are weighing up the potential of upper floors above shops or other commercial uses. One increasingly useful tool is use Class G under The Town and Country Planning (General Permitted Development) (England) Order 2015 (Schedule 2, Part 3) which allows for the change of use from a commercial, business & service use (Class E) or a betting office/pay-day loan shop to a mixed use (commercial at ground floor + up to 2 flats)

Here are the key take-aways and how we apply them:

What it allows

  • You can convert a building that currently falls within Use Class E (shops, offices, gyms, banks etc) or a betting office/pay-day loan shop (which are sui generis) into a mixed-use scheme: commercial use (or service etc) at ground floor, plus up to 2 flats above.
  • Unlike many permitted-development rights, there is no age limit on the existing building (i.e., it doesn’t have to have been constructed before a certain date)

Key conditions & limitations

  • The commercial (or sui generis) use must occupy a floor below the flats. You cannot convert the ground floor shop into a flat under this right (where there’s a display window, the ground floor cannot be used as a flat)
  • Before you commence, you must apply for prior approval from the local planning authority, assessing matters such as contamination risk, flood risk, noise from the commercial section, natural light to habitable rooms, and domestic waste management.
  • Even though it is a permitted development right, it may still be constrained by other protective designations: for example, if the building is listed, or if an Article 4 direction removes the right. Likewise, operational constraints (e.g., bin location, service access) often become the practical hurdle.

Why it matters for developers/investors

  • It gives a relatively straightforward route to introduce residential value in upper-floors above commercial uses – helping yield, unlocking latent space, or repositioning the asset.
  • When applied thoughtfully, it can form part of a business case for mixed-use redevelopment without needing full planning consent (which saves time and cost).
  • From our perspective at BB Partnership, it aligns well with our agenda for adaptive re-use of buildings and helps to provide housing stock in sustainable locations close to existing amenities and support the evolving nature of the high street in the UK.

What to watch out for

  • While the legislation says “anywhere in England”, local planning authority policies may still pose constraints, especially in sensitive areas, for example conservation areas.
  • The success of the prior approval is often determined by the detailed treatment of interface issues: noise insulation between commercial and flats, managing domestic waste and bin stores, daylight to upstairs flats, and arrival/service interfaces.
  • Integration matters: thoughtful layout, high-quality detailing, and a clear management strategy for the mixed-use building will improve chances of gaining the prior approval and support operational performance later.
  • Don’t assume “permitted development = no planning risk”. Always check for listed-building status, Article 4 directions, existing tenancy/use constraints and whether the commercial use below is auxiliary/ancillary or truly a separate unit (because issues of separate planning units may arise)

If you’re a developer, investor or landowner exploring the potential of upper floors above commercial units, Use Class G is definitely worth a closer look. At BB Partnership we regularly evaluate schemes under this and other permitted-development routes and we’d be happy to engage in an early feasibility review.

Let’s chat if you’d like to explore how this might apply on one of your assets.

Julian Williams

BA (Hons), Dip Arch, RIBA

Director

Manuela Barale

BA (Hons), Dip Arch, RIBA

Director

Susan Price

BA (Hons), Dip Arch, RIBA

Director

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