How does the new Scottish use class 1A for "Shops, and financial, professional and other services" compare to the English Class E?
Scotland: New Use Class 1A and other changes
From 31 March 2023, there is a new use class 1A for "Shops, and financial, professional and other services", and associated changes to permitted development rights (PDR).
As the name helpfully summarises, the new class combines current use classes 1 (shops) – and 2 (financial, professional and other services) to form a single use class. The principal implication of this change is to enable the change of use of premises between financial or professional services users and retail users without applying for planning permission.
There is also a new permitted change from financial/ professional service to car showroom, but only up to 235 sq.m.. That presumably acknowledges changes to the new car market, eg. EV company Polestar opening a unit at Silverburn shopping centre in Glasgow.
Another change is greater flexibility to open a restaurant or other class 3 food and drink use (but not a hot food takeaway, which is sui generis). However, the qualification that the premises are not below or within 1m of a dwelling will limit its usefulness in many Scottish town centres where there are flats on upper floors of buildings.
New flexibility also includes the right to change from various town centre uses to class 4 Offices, research & development and light Industrial, up to 300 sq.m.
The below table sets out what the rules/rights are before and after the changes comes into effect from 31 March 2023
Proposed use | Existing use | Pre-31 March 2023 | From 31 March 2023 |
Shop / Retail (previous class 1) | Financial / professional service (previous class 2) | No PP required – PDR (class 10) | No PP required – Change of use within use class 1A is not "development" |
Financial / professional service (previous class 2) | Shop / Retail (previous class 1) | PP required | No PP required – Change of use within use class 1A |
Car show / sale room (No use class) | Financial / professional service (previous class 2) | PP required | No PP required (up to 235sqm) – for any class 1A use |
Food and drink (class 3) | Shops / financial, professional services (class 1A) Betting shop Pay day loan shop Hot food takeaway | PP required | No PP required* - New PDR class 11A * Provided the premises are not below or within 1m of a dwelling |
Offices, research & development and light Industrial (in a residential area) (class 4) | Shops / financial, professional services (class 1A ) Food and drink (class 3) Betting shop Pay day loan shop Hot food takeaway | PP required | No PP required (up to 300sqm) – New PDR class 11B |
Comparison with Class E
The associated changes to PDR go beyond the two previous use classes. There will therefore be a lot more flexibility available to businesses than is the current position - premises can change use (relatively) freely between retail, business, financial / professional services, food and drink and other high street uses.
However, looking at the breadth of uses covered by Class E, it is clear that there is still a large gap between what you can do in Scotland compared to south of the Border. To list a few: health centres, gyms and nurseries don't benefit from the changes. By illustration, in England, it is possible to change from a retail unit to a gym without the need for planning permission, but in Scotland this would still require permission.
So while it is certainly a positive step in the correct direction to help support businesses and assist the recovery of Scotland's city and town centres, it leaves a slightly more restrictive position than if Scottish Government had opted to introduce an equivalent to class E.
It's a timely reminder that Scottish property advisers need to be aware of the differences from the rules in England. English based clients often know there are differences, but not the details.
The amendment order implementing the changes can be found here for further details.
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