New rules concerning change of use - Restaurants, Pubs and Takeaways

From April 2005 there will be changes to the Use Classes Order. The main effect of these changes will be that planning consent will be necessary for a change of use from restaurant to pub or takeaway in England.

The current class A3 (sale of food or drink for consumption on the premises or for hot food for consumption off the premises) is to be split into three new classes:

· A3 (restaurants and cafés),
· A4 (pubs and other drinking establishments) and
· A5 (sale of hot food for consumption off the premises).

Change of use from restaurant to pub, or restaurant to takeaway, will result in a different use class, and so planning consent will be required.

Changes from pub or takeaway to restaurant will be permitted without any need for consent, so long as the permitted development rights have not been excluded in relation to the particular property.

This may lead to some controversy where reference to a Use class has been included within a lease to describe the permitted use of property. A reference to A3 use in an existing lease will need to be considered in the context of the lease as a whole to decide whether it bears the pre- or post-April 2005 meaning. This may also have an impact on rent review comparables which will need to be examined and construed carefully for the same reason.

May 2005

Carmela Inguanta Partner, 020 7544 5639 carmelai@sghlaw.com