Commercial Property (Wales Only) Classifications Explained

Do you understand the different types of commercial property classifications? Originally introduced in The Town and Country Planning (Use Classes) Order 1987.

We have written this guide to explain each of the different classifications and the changes that were made.

(You can download a pdf by clicking here)

 

Types of Commercial Property Classifications

In the UK every property is assigned to a specific ‘Use Class’ category. This defines what activities a residential or commercial premise may be used for by its lawful occupants.

There are five main categories that make up the commercial property market. This is defined as properties that have the potential to generate profit through capital gain or rental income. These include:

• Offices
• Retail – Retail stores, Shopping centres, Shops
• Industrial – Warehouses, Factories
• Leisure – Hotels, Pubs, Restaurants, Cafes, Sports Facilities
• Healthcare – Medical centres, Hospitals, Nursing homes

 

The Commercial Property Use Classes in Wales

Class A1 – Shops

These are properties than can be used for any or all of the following purposes:

Shops

Retail Warehouses

Hairdressers

Ticket & Travel Agencies

Post Offices (but not Sorting Offices)

Funeral Directors

Pet Shops

Sandwich Bars (or other cold food for consumption off the premises)

Showrooms

Domestic Hire Shops

Dry Cleaners

Internet Cafés

 

Class A2 – Financial & Professional Services – use for the provision of:

Financial Services (such as Banks & Building Societies)

Professional Services (other than Health & Medical Services)

Estate Agents

Employment Agencies

Betting Shops

 

Class A3 – Food and Drink

For the sale of food or drink for consumption on the premises or of hot food for consumption off the premises, including restaurants, snack bars and cafés.

 

Class B1 – Business – use for any or all of the following purposes:

Offices for Research & Development of products or processes. For any industrial process (being a use which can be carried out in any residential area without detriment to the amenity of that area by noise, vibration, smell, fumes, smoke, soot, ash, dust or grit).

 

Class B2 – General Industrial

Use for industrial process other than one falling within B1 class (excluding incineration purposes, chemical treatment or landfill or hazardous waste)

 

Class B8 – Storage and distribution

This class includes open air storage

 

Class C1 – Hotels 

Hotels boarding and guest houses where no significant element of care is provided (excludes hostels)

 

Class C2 – Residential Institutions 

Clinics

Medical or Health Services

Crèche

Day Nurseries

Day Centres

 

Class C2(a) – Secure Residential Institution

Use for a provision of secure residential accommodation, including use as a prison, young offenders’ institution, detention centre, secure training centre, custody centre, short-term holding centre, secure hospital, secure local authority accommodation or use as a military barracks.

 

Class C3 – Dwelling houses

This is formed of three parts:

C3(a) – Covers use by a single person or a family (a couple whether married or not, a person related to one another with members of the family of one of the couples to be treated as members of the family of the other), an employer and certain domestic employees (such as au pair, nanny, nurse, governess, servant, chauffeur, gardener, secretary, secretary and personal assistant), a carer and the person receiving the care and a foster parent and foster child.

C3(b) – Up to six people living together as a single household and receiving care e.g., supported housing schemes such as those for people with learning disabilities or mental health problems.

C3(c) – Allows for groups of people (up to six) living together as a single household to allow for those groupings that do not fall within the C4 HMO definition to be provided for, e.g., a small religious community may fall into this category as could a homeowner who is living with a lodger.

 

C4 – Houses in Multiple Occupation (HMO)

HMO is small shared houses or flats occupied by between three and six unrelated individuals, as their only main residence, who share basic amenities such as a kitchen and bathroom. For the purposes of class C4, a ‘house in multiple occupation’ has the same meaning as in section 254 of the Housing Act 2004 and does not include a converted block of flats to which section 257 of the Housing Act 2004 applies.

 

D1 – Non-residential Institutions

Clinics, health centres, creches, day nurseries, day centres, schools, art galleries (other than for sale or hire), museums, libraries, halls, places of worship, church halls, law court. Non-residential education and training centres.

 

D2 – Assembly & Leisure

Cinemas, music and concert halls, casinos, bingo and dance halls, swimming baths, skating rinks, gymnasiums, or area for indoor or outdoor sports and recreation (except for motor sports, or where firearms are used).

 

Sui Generis – covers uses that don’t fall into any of the above Use Classes:

• Theatres
• Hostels
• Scrap Yards
• Petrol Stations

THE INFORMATION CONTAINED IN THIS GUIDE IS CORRECT AT THE TIME OF PUBLISHING. WE ALWAYS RECOMMEND YOU SEEK PROFESSIONAL ADVICE FOR YOUR SPECIFIC REQUIREMENTS. PLANNING PERMISSION USE CLASSES WILL BE DIFFERENT IN ENGLAND. PLEASE SEEK ADVICE

 

If your business needs help with commercial property, whether that’s with an existing property or finding a new property, we are here to help. Please give us a call on 01633 740 740.