Summary

In response to the coronavirus outbreak in the UK the Government has announced a new temporary permitted development that will allow pubs and restaurants to trade as hot food takeaways without needing planning permission for up to twelve months.  This announcement will be welcomed by food and drink operators, but there are some implications for landlords and tenants, which we discuss in this blog.

During and after the financial crisis in 2008 the government introduced measures within the planning system to try and promote economic growth by kick starting development.

The Covid-19 outbreak presents a very different set of challenges, at least at this stage, but  as it takes hold of the UK,  the government has been swift in looking to the planning system again, to see what part it can play in supporting businesses and communities.  

In the first of what is likely to be a series of planning measures, the government has announced it will introduce a temporary permitted development right that will allow a change of use of pubs (Class A4 – drinking establishments) and restaurants (Class A3 – restaurants and cafes) to hot food take away (Class A5)  for a period of up to 12 months only.  Planning permission would usually be needed for such a change of use, but this relaxation will allow businesses to make the change without a planning application.  However, businesses will be required to tell the local planning authority when the new use begins and ends. 

There is no indication when this measure will come into force (the legislation has not yet been drafted), with the government saying only that it will be put in place “as soon as possible”.  It will no doubt be welcomed by many and could be a potential life raft to those in the struggling food and drinks industry at this current time and also to local communities.  

Tenants planning to take advantage of this measure should consider whether there are any implications under their leases, particularly in terms of use restrictions, to avoid a breach, and may need to talk to their landlord before embarking on a change to their operation. 

Landlords are likely to welcome an application to change use to support their tenant customers in maintaining their businesses.  Whilst leases will require written consent these consents can be given online using electronic signatures. 

Landlords may also want to consider the implications of this new measure in the context of rent concessions.  A turnover rent linked to the number of orders filled by an establishment may be one option or a short rent holiday whilst the tenant sets up the takeaway business.  Orders are likely to be less than the usual number of covers so a rental reduction may also be welcome.

We will provide further updates on any other planning measures announced that will be of interest to our clients.