To many people’s thinking, one of the most successful rural planning policies of recent times has been allowing the conversion of farm buildings to residential use under Permitted Development Rights (PDR). After all, why not utilise redundant traditional farm buildings in order to provide additional rural housing?
Up until 2014, full planning consent was required to convert any farm building to residential use. As these buildings invariably are located outside existing settlements, planning applications were often refused and the buildings continued to decay. In April 2014, the conversion of agricultural buildings was included under Class Q of Permitted Development Rights, but only for three units with a maximum combined floor area of 450m2.
Following a consultation, the PDRs were extended in April 2018 and there is now the opportunity to develop a larger area. It is now possible to create up to three large homes, with a combined floor area of not more than 465m2, or five smaller homes with none being bigger than 100m2, or a combination of both.
Prior approval is required from the Planning Authority before carrying out the development, but this should be much easier to obtain than full planning permission.
What is not to like? Old rural buildings, which are now of little or no use for modern agriculture, being converted to provide rural homes. However, as is the way in life, such a process is not to everybody’s liking. The Local Government Association is now lobbying to have this PDR removed and farm building conversion brought back under full planning control. It argues that this uncontrolled rural development is putting undue strain on infrastructure and service provision. Whether this is the case, or whether it just desires local authorities to exercise full control again, I will leave you to decide.
What this does suggest is that the opportunity to develop old farm buildings without the need to seek full planning permission will not last forever, so make the most of it while you can.
Should you do so, you should also consider how to make the most of the opportunity. The current ownership structure may not be the most tax efficient. If the buildings are owned by the business, should they be moved out prior to the PDR being exercised? Does it provide the opportunity for the next generation to have a home on the holding? Can it be in joint ownership to make the most of Capital Gains Tax exemptions?
As is so often the case, a little bit of input from your professional advisors prior to going ahead could be money well spent indeed.
If you have any matters that you would like to discuss then please do not hesitate to speak to Tom Wills or his specialist team of rural advisors. His contact details are tom.wills@sintons.co.uk and 0191 226 3796.
