Permitted development rights to support the provision of new homes: consultation

3 Permitted development rights for town centre living

Background

We are considering the scope for PDR to promote ‘town centre living’ – encouraging more people to live in town and city centres. Policy 15 ‘Local Living and 20 minute neighbourhoods’ of NPF4 aims to support local living and the creation of connected and compact neighbourhoods where people can meet the majority of their daily needs within a reasonable distance of their home by sustainable means. Town centre living can help to achieve this aim, and help to revitalise and support the vitality and viability of town and city centres.

Policy 27 ‘City, town, local and commercial centres’ of NPF4 aims to encourage, promote and facilitate development in city and town centres, including by encouraging town centre living. The policy provides support in principle for residential development within city/town centres.

We do not consider it would be realistic or practical for PDR to relate explicitly to ‘town centres’ or ‘city centres’, nor for the PDR to relate to areas identified as such in local development plans. Given that there is no universal definition of what constitutes a town or city ‘centre’, this could create significant uncertainty and confusion. Instead, PDR could relate to changes of use in relation to particular uses or use classes. Such PDR would also not necessarily be restricted to town centre uses and could allow for residential use of buildings or parts of buildings in other areas and locations as well.

The Town and Country Planning (Use Classes) (Scotland) Order 1997 provides the framework for use classes. It lists uses of a broadly similar character within a single ‘use class’. A change from one use to another within the same use class does not involve development and therefore does not require planning permission. In 2023, we introduced Use Class 1A (Shops and financial, professional and other services)^[2] through Phase 2 of the PDR review. This essentially merged the previous Use Classes 1 and 2 and encompasses a wide range of uses including for the retail sale of goods other than hot food (most shops, supermarkets, etc); hairdressers; travel agents; laundrettes; banks; estate agents and a range of other shops and services. The use class brings together a variety of uses which are often found in (or are associated with) city, town and local centres. We therefore consider that any PDR seeking to promote town centre living could refer specifically to uses within that use class. However, it is important to note that uses within Use Class 1A do not only occur in town and city centres; they frequently occur outside such centres, including in rural areas.

We are considering the potential for PDR which would allow the change of use to residential use of buildings (or parts of buildings) falling within Use Class 1A. In addition, or alternatively, they could allow the change of use of only upper floors above uses falling within Use Class 1A.

The potential role of Masterplan Consent Areas

Masterplan Consent Areas (MCAs) are a new consenting mechanism where the planning authority proactively sets out, and grants consent, in an MCA ‘scheme’ for development it wishes to be delivered, subject to any conditions. Guidance on MCAs is contained in Masterplan Consent Areas: Guidance.

MCA schemes can grant four types of consent including planning permission and listed building consent. They can shape development, setting out the type(s) of use consented by the scheme with use of a masterplan and by including conditions, limitations and exceptions which may cover aspects such as development parameters, design and environmental matters. Within adopted MCAs, development can be carried out without the need for a full planning application providing it is in line with the agreed scheme.

MCAs are effectively a different means of granting consent and as such are a flexible tool that could support a wide range of scales and types of development needed across the country. Unlike their predecessor Simplified Planning Zones, MCAs can be prepared for land within a conservation area, opening up the scope for them to be used to support town centre regeneration.

In contrast to the relatively blunt instrument of PDR, MCA schemes can be applied to, and tailored to, specific places.

Even in the absence of any ‘town centre living’ PDR, it would be open to a planning authority to prepare an MCA scheme that grants planning permission, and potentially also listed building consent, for the conversion of buildings (or specified parts or floors) to homes (and/or other uses).

Potential for PDR for change of use of buildings within Use Class 1A

NPF4 Policy 27 states that proposals for residential use at ground floor level within city/town centres will only be supported where the proposal will (i) retain an attractive and appropriate frontage; (ii) not adversely affect the vitality and viability of a shopping centre or the wider centre; and (iii) not result in an undesirable concentration of uses, or 'dead frontages’. These criteria potentially involve detailed case-specific consideration and professional judgment. We do not currently believe it would be practical for them to be suitably addressed by way of conditions or restrictions set out in a PDR.

In view of the above, we are currently of the opinion that it would not be appropriate to introduce a new PDR to convert the ground floor, or the entirety, of buildings within town and city centres. Such proposals could however be consented through a MCA scheme as discussed above, where considered appropriate by the planning authority. In the absence of such PDR or permission granted by a MCA scheme, proposed conversions that include the ground floor would generally continue to be the subject of a planning application. This will allow planning authorities to consider the entire range of potential impacts of such proposals and assess each proposal on its own merits and against relevant development plan policies.

Question 10: Do you consider that proposals to convert the ground floor or entirety of buildings in town and city centres to residential use should benefit from PDR? Please explain your answer.

Potential for PDR for changes of use of upper floors only

We believe that there may be some scope to introduce PDR for the change of use to homes of upper floors above Use Class 1A uses. By upper floors we mean any and all of those floors above ground floor level.

Such PDR would potentially permit a change of use of floors above Use Class 1A uses whatever the existing use of those upper floors. They might for example currently be used for storage, ‘back office’ or staff welfare space associated with a shop below. But they might instead be independent offices, unrelated to the business on the ground floor, or some other use.

Question 11: Do you consider that there should be PDR for the change of use of properties above Use Class 1A premises to residential use? Yes / No / Unsure. Please explain your answer.

Question 12: Do you have any comments about the prospect that the PDR would allow a change of use to residential from any existing use? Yes / No / Unsure. Please explain your answer.

Various factors affect the suitability of residential use above or close to Use Class 1A uses and the living conditions of such dwellings. In determining whether and how to take forward a PDR for this purpose, consideration will need to be given to addressing various matters. These include potential amenity impacts; flood risk; noise, pollution and odour from nearby land uses and traffic; access arrangements; and impacts on transport. The ‘agent of change principle’ also requires consideration. This seeks to ensure the continued operation of existing businesses is not threatened by new residential development nearby.

Designing a PDR which addresses these issues may require a combination of size/location restrictions and potentially a prior notification/approval mechanism. It may also be the case that prior approval for certain matters may be appropriate in some cases but not others. For example, approval in respect of flood risk, and potentially a flood risk assessment, might be necessary but only where the development is in a flood risk area.

We are aware that, depending on the nature and number of matters requiring prior approval, any PDR and associated prior approval mechanism could end up being perceived as no simpler or quicker than the planning application process. There is also a risk that the PDR do not provide prospective developers any greater confidence that a potential residential conversion can proceed, than that already provided by supportive planning policy. We would welcome views on this.

We would welcome views on what limits and restrictions to such PDR may be appropriate. These could for example relate to the size and/or number of units that may be developed under the PDR. There could also be restrictions related to areas so that the PDR do not apply in certain areas such as World Heritage Sites or conservation areas, or do not apply to certain types of building. We do not however consider it necessary to exclude listed buildings, as listed building consent would be required for any work for the alteration or extension of such a building.

Floorspace requirements

To help prevent the creation of homes that are too small for an adequate standard of living, it may be appropriate to have a minimum floorspace requirement for new dwellings created under PDR. Under such a provision, the PDR would not allow the creation of any new home below this limit. We would welcome views on this matter, including suggestions on what an appropriate minimum floorspace should be.

We recognise that in some cases, there may be potential to create multiple dwellings, or units of a substantial size, within a building. This could give rise to local issues in relation to residential amenity and increased pressure on infrastructure such as transport and education. As noted earlier, developer contributions towards infrastructure cannot generally be sought where development is permitted under PDR. We would welcome views on whether the PDR should include restrictions on the maximum floorspace, size and/or number of residential units that can be formed.

Question 13: Do you think PDR for the change of use of properties above Use Class 1A premises to residential use should include any limits on the minimum or maximum floorspace, size and/or number of residential units that can be formed? Yes/No/Unsure. Please explain your answer and describe what you think the limits should be, if any.

Other exclusions, limits and restrictions

We consider it would be appropriate to exclude certain types of buildings from the PDR. These include substantial commercial premises such as supermarkets; enclosed shopping centres and shops in ‘out of town’ retail parks. This is primarily to avoid the potential for additional housing being created in unsuitable locations and buildings and which would not contribute to town centre living.

Question 14: What other potential limits, restrictions and exclusions to such PDR should be considered?

Prior approval mechanism

We think that it would be appropriate for any new PDR to provide for the consideration and approval of a limited range of matters by the planning authority. Those ‘prior approval’ matters could include:

• provision of adequate natural light in all habitable rooms of the dwelling;
• access to the dwelling;
• impacts of noise on occupiers of the new dwelling;
• the risk of flooding of the site or building.

It would be open to planning authorities, when giving their approval in relation to such matters, to impose conditions relating to those matters. Where the authority has indicated that prior approval is required and subsequently considers that the proposal cannot be made acceptable, they may refuse to give such prior approval. The applicant would have the right to appeal against such a decision.

Question 15: Do you consider that a prior notification and approval mechanism should be required in respect of a PDR for ‘town centre living’ as discussed in this chapter? Yes / No / Unsure. If yes, what matters do you consider should potentially be subject to prior approval? Please explain your answer.

External alterations

We would welcome comments on whether any PDR for the change of use of floors above Use Class 1A premises should also allow certain external alterations of a building to facilitate the conversion to residential use. If so, what alterations should be permitted?

We recognise that some upper floors above Use Class 1A premises can currently only be accessed through the existing shop or other commercial space below. In those cases, it is likely that a new external door on the ground floor, and potentially new stairs, would need to be added to facilitate suitable access to new dwelling(s) above. It is unlikely such work would benefit from existing PDR, especially if it affects an existing commercial establishment front.

Certain other external alterations might also be desirable. For example the addition of new windows in order to allow sufficient light into habitable rooms, which would be unlikely to benefit from existing PDR.

Question 16: Should any such PDR (permitting the change of use of floors above Use Class 1A premises) also permit certain external alterations of a building to facilitate the conversion to residential use, if so what alterations? Please explain your answer.

Other comments

Question 17: Please provide any other comments regarding the potential options to introduce PDR for ‘town centre living’ proposals as discussed in this chapter.