For anyone looking to rent, buy, or sell a commercial property, understanding the UK ‘use classes’ system is essential. This is a system where commercial properties are classified according to the use of the building, ensuring that tenants and those in the local area are safe and well-served, as well as ensuring that those renting the property are clear about what they are allowed to do within it. It is also very beneficial for landlords to have a clear understanding of the use class of their commercial property.
Here at Boxpod, we live in the world of commercial properties, so in this article, we will guide you through the system so that you are clear about commercial use classes in the UK. For both commercial landlords and tenants, it is essential that you understand these and conform to the rules to avoid the risk of fines and/or prosecution.
The government changed the use classes and their definitions in 2020 to make them more flexible and easier to understand.
Why Are There Commercial Property Use Classes?
The government has allocated use classes for land and every building, including residential properties, to help them with planning. It means that they have an idea of how many residential spaces there are in any particular area, that they are adequately served with infrastructural amenities such as hospitals and schools, and to build and boost the local economy with commercial properties and cultural features.
They were also updated in 2020 to ease up the planning system and enable businesses to get moving with renovations and adaptations as friction-free as possible.
The concept of use classes can be used to ensure that heavy manufacturing factories are not placed in dense residential areas, and that schools are evenly distributed across a town, for example.
In addition to this, the use classes can be used to advise landlords and tenants on what activities can be carried out within the property, and details about what development can be carried out in the property. It can also determine whether a property’s use class can be changed.
What are the Current Use Classes for Commercial Property in 2026?
The current commercial property use class categories are based on the rules that came in in September 2020.
Class B – Industrial
Some of the commercial industrial units that we once would have thought of as the ‘industrial’ sector are now classified in the E category. However, those that are left over are still categorised in the B category.
B2 – General Industry – refers to activity that goes beyond ‘light manufacturing’ (which has now been re-categorised), such as manufacturing, processing, and fabrication. Due to the nature of the activities that could be carried out, these commercial properties are often located away from residential areas, commonly in industrial estates.
B8 – Storage and Distribution – refers to activities related to warehousing, storage, and distribution. The B8 building classification properties are increasingly in demand from companies that are working online and shipping goods and products, having carried out the process online. These include units such as distribution centres, but also other cases when they are used for storage, but that is not necessarily the main part of a business, such as a space used to house classic cars.
Class E – Commercial, Business, and Service
The majority of outstanding commercial properties will land within the Class E category. Many of the pre-2020 categories were combined to create the larger Class E. One of the main reasons for this is that businesses can change the activities within the commercial property without resistance. Any commercial property that is categorised as an E Class can legally be used for any other E Class activities.
E(a) – refers to retail units that display and sell goods (except for hot food), such as most high street shops, for example.
E(b) – refers to businesses that sell food and drink that are usually consumed within the building – cafes and restaurants, for example.
E(c) – refers to commercial properties that home businesses carrying out professional and financial services – such as solicitors and accountants, but NOT including medical services.
E(d) – refers to activities such as indoor sports, recreation, or fitness – gyms, for example, but not including activities that involve firearms or motorised vehicles.
E(e) – refers to health or medical services, GP surgeries, for example.
E(f) – section refers to properties used for creches, nurseries, or day centres, but not residential, places that are visited each day.
E(g) – refers to three different activities:
- E(g)(i) – offices
- E(g)(ii) – process or product development
- E(g)(iii) – light industrial process
The key element to the E(g) section is that the use of the commercial property should not be to the detriment of the local area, often residential. This means that the business cannot cause undue noise, smell, smoke, ash, grit, vibration, fumes, soot, or dust.
The nature of this use class means that a landlord can rent their commercial property for the use of a wide range of different uses, from shops to cafes, to offices, without any change to planning or applications needed. It also means that if you are renting your commercial property to a tenant for use as an office, for example, you can then go to rent it for use as a gym to the next tenant, with no hassle.
Sui Generis
The Latin term, ‘Sui Generis’ literally translates to ‘of its own kind’ and refers to commercial properties that are in their own class – those that don’t fit into any of the other categories. These will always need planning permission before the use of the property for these particular activities.
Some of the activities that would come under the Sui Generis classification would include:
- Drinking establishments such as bars and pubs
- Cinemas, bingo halls, and concert venues
- Hostels
- Car showrooms
- Nightclubs
- Amusement arcades
- Taxi ranks and vehicle hire businesses
- Takeaways selling hot food
- HMOs for over 7 people
- Casinos
- Petrol stations
- Scrapyards
- Laundrettes
How Can Knowledge of Use Classes Help a Commercial Landlord?
If you are a commercial property landlord looking to rent your property, understanding the use class system – and how this impacts your property can be very useful for a number of reasons.
- You can consider the rental potential of the unit – a property in the Class Use E category, for example, will give you more flexibility and more options over who you can rent it to.
- It can help you to avoid any legal issues that might come up, especially if commercial tenants are looking to change its use.
- You can have more control over your rental income by understanding better who you can rent the property to.
- If you are considering carrying out renovations or development when your property is empty, understanding its potential uses can be very helpful.
Who is Responsible for Use Class Compliance in Commercial Properties?
In the first case, it is usually the tenants that are responsible for ensuring compliance with the Use Class classification, and that planning services are advised of any changes. However, it should also be noted that landlords can also be held to account – especially if they are aware of the misuse of their rented commercial property.
Here at Boxpod, we advise landlords to specify the activities that are allowed to be carried out within their rental agreement with tenants, and stipulate that they should be consulted if the tenants are looking to alter the use.
Final Thoughts
For commercial property landlords, understanding use class can be helpful in several ways, from ensuring that you are within the law to helping you to earn the best rental yield for your unit.
If you have a commercial property to rent, you can list your property here with us at Boxpod from £12 a month.
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