New law tightens up planning rules on pub conversions
29th January, 2015
The Government is passing legislation to tighten up the rules on converting pubs into shops, houses or other developments.
What has happened?
As we noted in a previous update the conversion of pubs into convenience stores has become a popular option in recent years.
Pub companies are looking to offload their less profitable bars in neighbourhood areas whilst convenience sector operators want more outlets located close to people’s homes.
Because of the location of many pubs within communities, it has also become a popular option to sell off pubs to developers who then convert the building into residential use or demolish the pub and build homes on the site.
What is changing?
Following a series of cases where people joined together to campaign for their neighbourhood pub to be saved, the Government is strengthening the rights for residents to have a greater say on the fate of their local.
Ministers are passing legislation so that any pub which is registered as an Asset of Community Value (ACV) will have to obtain planning permission if its owner wants to convert it to another use or demolish it for housing or other developments.
Previously, converting a pub into a convenience store required no planning permission unless an Article 4 Direction was in place (see our previous update) or usual permitted development rights were withdrawn by a condition on a planning permission which has been implemented.
Which pubs will be affected by this?
The new legislation will only affect those pubs which are registered as Assets of Community Value – currently around 600 across the country.
However, registering a pub as an ACV only needs the support of 21 people in a local community and publicity surrounding the new powers may encourage residents in more areas to pursue an ACV registration.
Registering a pub as an Asset of Community Value also means that if the pub goes up for sale, residents have six months and additional support to put together a community bid to buy it.
The Government has said that it believes the measure “provides the right balance between protecting valued community pubs, but avoiding blanket regulation which would lead to more empty and boarded up buildings”.
An alternative plan which would have seen all pubs having to seek planning permission for conversion or demolition was narrowly defeated in the House of Commons by 293 votes to 245.
What will be the overall effect of the new rules?
In addition to the increased use of Article 4 Directions, the new legislation is likely to make converting or selling off pubs less straightforward than previously.
As a result, pub companies, convenience store operators and developers need to bear this in mind when drawing up plans to redevelop pub sites or to establish new ones.
Whilst having a pub listed as an Asset of Community Value may restrict the owner’s options, it will at least demonstrate that the pub is a valued part of the local community who may wish to spend more time (and money) there.
Where can I get further information?
For more information about the issues raised in this update and how it could affect your plans, please get in touch.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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