Comparing the 3 Legal Routes to Convert a Shop or Office into Flats
Property investors and commercial owners in England have three statutory routes to turn a shop or office into residential flats. Choosing the right route depends on whether you want to convert the entire building or only the upper storeys, and whether the building is in Use Class E or Sui Generis.
| Conversion Route | GPDO Statutory Class | Maximum Number of Flats | Prior Commercial Use Rule | Best Suited For |
|---|---|---|---|---|
| Full / Partial Commercial Conversion | Schedule 2, Part 3, Class MA | Unlimited (No unit or sqm cap since March 2024) | Must have been in Class E use for 2 continuous years | Converting a whole office block, vacant shop, or rear/upper commercial space |
| Flats Above an Active High Street Shop | Schedule 2, Part 3, Class G | Up to 2 Residential Flats | No 2-year waiting period (instant eligibility for Class E) | Turning empty storage rooms above a newly acquired shop into 1 or 2 flats |
| Full Planning Application | Section 57 TCPA 1990 | Determined by site capacity & Local Plan | Applies to any Use Class including Sui Generis | Converting pubs, hot food takeaways, Launderettes, or buildings in Article 4 areas |
The Secret Weapon for High Street Investors: Class G vs Class MA
Most investors know about Class MA, which requires the building to have been in Class E use for 2 continuous years. However, if you buy a property that only recently changed to Class E, or if you only want to convert the upper floors above a ground-floor shop or financial services unit into 1 or 2 flats, Schedule 2, Part 3, Class G of the GPDO is often faster and simpler.
Under Class G, you can change the use of space above a Class E commercial premise (or betting office/payday loan shop) into up to two self-contained flats without needing to prove 2 years of prior commercial history. Like Class MA, Class G requires a Prior Approval application assessing contamination, flooding, noise from commercial premises, natural light in habitable rooms, and meeting the Nationally Described Space Standards (37 sqm minimum).
Be careful with high-street 'Sui Generis' units. Hot food takeaways (fish and chip shops, kebab takeaways), public houses/wine bars, Launderettes, nail bars (where classed Sui Generis), taxi offices, and betting shops DO NOT sit in Use Class E. Converting a takeaway or pub into flats always requires a Full Planning Application.
Building Regulations & Council Tax on Shop-to-Flat Conversions
Even when your conversion is exempt from Full Planning Permission under Class MA or Class G, a material change of use to residential flats triggers strict statutory compliance under the Building Regulations 2010:
• Approved Document B (Fire Safety): Mandatory fire compartmentation (typically 60-minute fire resistance between a retained ground-floor commercial shop and upper-floor flats), protected escape stairwells with AOV smoke vents, and Grade D1/LD2 or Grade A interlinked fire alarm systems.
• Approved Document E (Resistance to the Passage of Sound): Pre-completion acoustic sound testing is mandatory between separating floors and walls to achieve at least 43 dB DnT,w + Ctr airborne sound insulation.
• Approved Document L & O (Conservation of Fuel & Overheating): Upgrading thermal insulation of external walls/roofs, SAP EPC calculations for each newly created flat, and overheating mitigation.
• Council Tax & Street Naming: Once completed, the local council's Street Naming and Numbering team will issue official postal addresses (e.g. Flat 1 & Flat 2) and the Valuation Office Agency (VOA) will assign each flat its own Council Tax band (usually Band A or B).
Step-by-Step Shop & Office Conversion Checklist
Before starting work on any shop or office conversion, complete these five statutory steps: