Rural landowners and farmers are increasingly looking for innovative ways to maximise the potential of their assets. With changing agricultural landscapes and economic challenges, diversification has become key to sustainable business growth, but it is important to find the right fit to ensure a viable enterprise.
Understanding Permitted Development Rights (England)
Permitted development rights (PDRs) offer rural businesses greater flexibility in transforming their properties without going through extensive planning applications and avoiding many restrictive local and national planning policy constraints. These rights are also exempt from the provision of Biodiversity Net Gain, making them a more cost-effective route through planning in most cases. These rights come in several categories:
Class Q: Agricultural to Residential Conversion
Permitted development rights for agricultural buildings have undergone significant changes in recent years, with new legislation introduced last year. Landowners are able to convert agricultural buildings to residential dwellings, with the maximum number of potential dwellings permissible per ‘established agricultural unit’ increased from five to ten. The total floor area allowance has expanded to 1,000 square metres, providing more flexibility for conversion projects. However, it's crucial to note that there's now a significant limitation: the maximum footprint per dwelling is restricted to 150 square metres, which can impact the scale and potential of conversion plans. These rights are not available in Conservation areas or Areas of Outstanding Natural Beauty (AONBs)/National Landscapes, nor can they be applied to Listed buildings. However, they can be used in the Green Belt and other sensitive rural locations, so can provide the key to unlocking residential opportunities in many cases where full planning permission may not be achievable.
Class R: Agricultural to Commercial Transformation
This category offers an exciting opportunity for rural businesses to reimagine their existing agricultural spaces. Using Class R, landowners can transform agricultural buildings into flexible commercial spaces, with recent expansions allowing up to 1,000 square metres of floor space per established agricultural unit. Uniquely, these rights are applicable even in AONBs, providing broader opportunities for diversification. The rights support a range of uses, including industrial use, storage facilities, and recreational spaces, giving rural businesses unprecedented flexibility in utilising existing agricultural property. However, it is important to note that any external works required will need to be addressed through a full planning application.
Agricultural Permitted Development Rights
These rights provide a 28-day prior notification period for constructing new agricultural buildings (amongst other agricultural development), with the footprint increased to 1,500 square metres for non-livestock buildings. One critical consideration for landowners is the interaction between different development rights - these agricultural development rights cannot be used within 10 years of implementing Class Q rights (and vice versa), requiring careful strategic planning.
Exploring Additional Income Streams
Temporary Use Opportunities
Rural landowners now have multiple options for generating additional income through temporary land uses. Innovative approaches include creating wedding venues in woodland areas, offering camping and glamping experiences (with up to 60 days of permitted use per year), organising festivals and outdoor events (up to 28 days per year under permitted development), and filming (permitted development rights also extended here). These temporary uses provide are a great way to generate additional revenue without making permanent alterations to land, offering flexibility and minimal long-term commitment.
Farm Shops and Cafes
Developing on-site produce sales can be an exceptional diversification strategy for rural businesses. Success relies on several critical factors, including likely footfall on site, social media presence and existing farm reputation. The rising popularity of farm-to-table experiences, including high profile case studies, like Clarkson's Farm, has renewed public interest in farming businesses. A more expansive offering may require full planning permission.
Creating dog training fields
We have seen great success from the change of use of land to provide dog training and exercise facilities, which can also expand to a dog day care offering. Such facilities can be operated in hand, as a joint venture or leased to an operator. This requires full planning permission, so it is important to check whether this would be achievable in the first instance.
Commercial lettings
Ranging from self-storage to CrossFit gyms, breweries to workshops and everything in-between, rural buildings can offer unique and desirable opportunities for commercial uses. This taps into the variety of businesses and entrepreneurs who are looking for lease or joint venture opportunities. In many cases, Class R permitted development can be utilised to secure these changes of use.
Rural Diversification in Action
Rede Hall Farm Park: Innovative Barn Conversions
The transformation of a traditional Suffolk Punch farm demonstrates the power of strategic property development. By carefully leveraging Class Q rights, we navigated a complex property challenge on behalf of the landowners. Rede Hall Farm Park successfully secured consent for barn conversions, which allowed them to create a new family home without the typical restrictive occupancy conditions. This not only solved their immediate housing needs but also significantly increased the overall property value, showcasing how creative thinking can unlock hidden potential in rural properties. We were also able to obtain permission for a new, purpose-built agricultural building in the process.
Waresley Park Estate: Diversifying into Multiple Income Streams.
Waresley Park Estate presented a classic rural diversification opportunity. Spanning approximately 90 acres and previously operated as an equestrian stud, the estate was struggling to maintain its traditional business model.
The landowner took a strategic approach by initially using 28-day permitted development rights to test the events and wedding market. The client is now in the process of obtaining full planning permission to establish the events and wedding business permanently, and permitted development has enabled them to demonstrate to the council the demand for such a venue in the area. Other activities such as wild swimming, dining experiences and arts & crafts have also been highly popular, appealing to tourists and local residents alike.
In addition to diversifying the estate into a venue, we secured full planning permission for a cafe. Alongside this, we have also obtained planning consent for 8 glamping pods, with views over the parkland and vineyard. Waresely Park Estate showcases how strategic planning and permitted development rights can unlock new opportunities for rural landowners.
Professional Guidance is Key
Navigating the complex landscape of permitted development rights and rural planning requires expert insight. Local Authorities interpret these rights differently, making professional consultation crucial. Experienced consultants can provide invaluable assistance by helping landowners understand local perspectives, effectively tailor applications, assess the viability of a potential diversifications scheme, and ultimately maximise the potential of their rural assets.
