Commercial Property

Propertymark has called for all political parties to commit to simplifying commercial planning applications in their campaigns to attract voters for the forthcoming general election. This call aims to reduce bureaucratic delays and promote economic growth.
The organization also requested that politicians provide clearer guidance on how local authorities should handle the auctioning of commercial properties under the High Street Rental Auctions introduced by the Levelling Up and Regeneration Act.
In terms of decarbonisation, Propertymark emphasized the need for government grants to help commercial landlords meet their decarbonisation targets. Additionally, they called for the national rollout of an advisory service to support this effort.
Earlier this year, Propertymark communicated with the Secretary of State for Energy Security and Net Zero to determine if the Prime Minister’s amendments to the Minimum Energy Efficiency Standards (MEES) for the private rented sector (PRS), which concluded last September, also apply to commercial agents.
Commercial properties in England and Wales must meet Energy Performance Certification (EPC) B standards by 2030, with an interim target of Band C by 2028, which was moved forward from 2027.
Before the election, the Department for Energy Security and Net Zero aimed to establish a Business Energy Advice Service to assist businesses, including commercial properties, in their decarbonisation efforts. This initiative, starting with a pilot in the West Midlands Combined Authority, is expected to expand nationally by 2025.
Propertymark also supports a reduction in business rates, the taxes paid on properties like shops, to reduce the number of vacant buildings.
Furthermore, they suggested creating a database of current permitted uses for commercial properties or ensuring each property has a clearly defined permitted use. This measure would streamline the process for those looking to repurpose buildings.
Currently, changing the use of a building often requires permission. Many local councils have online planning portals to help developers access a building’s planning history.
Buildings are categorized into ‘use classes,’ meaning that if the proposed new use falls within the same class as the existing one, planning permission may not be required.
Anyone can apply for planning permission from a local council, but the legal owner of the land or building must be formally notified. The decision process typically takes about eight weeks, but it can take longer.
The Levelling Up and Regeneration Act, which received Royal Assent on October 26, 2023, includes measures to revitalize England’s empty high streets. Part 10 of the Act gives local councils the discretionary power to auction certain empty high street premises, obligating landlords to lease these properties to successful bidders—a measure supported by Propertymark.
"As the 2024 General Election unfolds, we would like to see more clarity over the system of auctioning commercial property acquired by local authorities," said Michael Sears, commercial advisory panel member at NAEA Propertymark. "Any measures should not drive down investment in commercial stock. Currently, the planning process takes too long, and this thwarts economic regeneration when it should be doing the opposite.
"Furthermore, the system is held up by local authorities refusing to confirm current use class, meaning businesses looking to occupy commercial property are held up by having to apply for planning permission to confirm they can currently use the property for their type of business.
"A database or something attached to land registry, or the valuation office, would greatly help," Sears added.