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New Planning Framework: What It Means for Pub Sales

Written by Jeremy Spooner, Partner, Commercial Property, William Sturges

You will have seen in the press and on TV references to the new National Planning Policy Framework (NPPF) as it relates to the sale of pubs. The framework is intended to be taken into account either in general or specifically where local authorities are producing their local
plans and/or spatial development strategies.

I’ve read the Framework. I’d like to say it’s so you don’t have to, but I can’t say that. This is not warrantable Planning or Legal advice. As I’m involved in the Pubs Industry, though, I thought I’d add my tuppence worth.

There are a number of principles.

  1. “All plans should be informed by a baseline understanding of the needs, opportunities constraints and wider context of the area to which they relate”
  2. The preparation of local plans has to be underpinned by information and data.
  3. The use of Article 4 directions to remove permitted development rights is limited and has to be based on robust evidence and applied to the smallest area required to mitigate any harm that might be caused (No substantive change is made to the rules governing Permitted Development is made, but the Framework makes it harder for Local Authorities to prevent it).
  4. The planning system should support economic development rather than the continuing adding of housing and local authorities are required to frame their development plans accordingly.
  5. “The creation of healthy and inclusive places and the provision retention and enhancement of appropriate community facilities and public service infrastructure” should be promoted.
  6. Applications for hot food takeaway should be refused within reasonable walking distance of schools and other places where children and young people congregate and /or in locations where there is evidence that a concentration of such uses is having an adverse impact on local health, pollution or antisocial behaviour.
  7. The framework imposes a requirement to develop and maintain a diverse, inclusive and not overcrowded town centre.
  8. The crucial passage as far as the pub industry is concerned is as follows (précised slightly). “Development proposals should not result in the loss of key community facilities and public service infrastructure unless a) it can be demonstrated that there is no reasonable prospect of the use being retained
    b) the loss resulting from the proposed development will be replaced by equivalent or better provision
    c) The decision-maker is satisfied that there is sufficient alternative provision of the type of use concerned in the local area such that its loss will not diminish access to key community facilities or public service infrastructure.”

For an application for change of use to succeed it must be demonstrated that there is no reasonable prospect of the use being retained ((a) above). Specifically in the case of shops and pubs evidence should be provided that reasonable steps have been taken to market the
property for its existing use without success for a period of at least 12 months. There was a rumour circulating under the Starmer government that this protection would only apply to the last pub in a neighbourhood but the Framework makes it apply to all pubs.

What effect these changes will have on residential developer’s appetite for pubs to convert is not immediately apparent. Pubs have been closing at a great rate for years for reasons which might include but certainly aren’t limited to development control.

Evidence of marketing for 12 months will presumably be easy for pub owners to gather. The rule will of necessity slow disposals for housing development, but whether that will result in an upsurge in pub trade or just a gumming up of transactions remains to be seen.

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