About this page
How this part of the Local Plan Options Document works
These Development Management policy option pages contain the following sections:
Policy background
- Relevant national policy or regulations
- National or regional trends
- Local situation and needs/li>
- How we have dealt with this issue in the past
- The thinking behind the policy
Policy options for the new Local Plan
We may suggest a variety of approaches:
- Keeping existing policy as it is
- Making small changes
- Replacing the policy with something that is substantially different
- Identifying factors or events which may affect this policy in the future
Policy option analysis
- A list of the advantages and disadvantages that we have identified for each of the policy options we are presenting.
Read the Jobs Topic Paper , Employment Study Evidence Base document and Economic Strategy Evidence Base for in-depth focus about this topic, and the evidence which informs our policy. Visit our library of Local Plan Options supporting documents to learn more.
Explore the policy
Select a section below to read more.
9.248 The Council’s Economic Strategy seeks to support and enable the Bath and North East Somerset economy to become more prosperous, sustainable and fairer. In order to help improve economic performance and drive moves towards greater innovation and a more creative economy there needs to be sufficient space for businesses to thrive. This includes office space suitable for modern occupiers. The National Planning Policy Framework (2023) paragraph 85 also states that planning policies and decisions should help create the conditions in which businesses can invest, expand and adapt. Significant weight should be placed on the need to support economic growth and productivity, taking into account both local business needs and wider opportunities for development.
9.249 Evidence shows that the net requirement for office floorspace in B&NES is between 91 ,000 and 94,000 sq m. The majority (around 75%) of the office floorspace and land requirement forecast across B&NES is in Bath City.
9.250 Changes in the Use Class Order and the new Class E use ‘Commercial, Business and Service’ combines former B1 Use Classes with a number of former uses commonly found in town centres. This introduction of the E Use Class allows the change of use to other uses within the Class E use without the need for planning permission. In addition, with Permitted Development Rights for change of use from Class E to residential, there is increasing pressure for redevelopment of office stocks to other uses. However, it is important to note that permitted development rights do not apply in World Heritage Sites, i.e. Bath, or in the case of Listed Buildings.
9.251 The phased introduction of Minimum Energy Efficiency Standards (MEES) requirements means that since April 2023 it is an offence to continue to let non-domestic properties with an Energy Performance Certificate (EPC) rating below E. It is uncertain at this point whether this will reduce replacement rates as buildings are refurbished and thus their useful life extended or will drive an increase in replacement rates as buildings cannot be improved sufficiently to meet increasing standards.
9.252 In addition to the regulations requiring energy efficiency, older stocks are less likely to be able to accommodate modern infrastructure such as Heating Ventilation, and Air Conditioning (HVAC), electricity supply etc. and the demands of the market can shift, meaning that office stock can be no longer of a desirable quality or location.
9.253 Evidence suggests overall the trend in the market is of a ‘flight to quality’, driven by the need to demonstrate ESG (environmental, social and governance) credentials and the need to provide a high quality offering to attract staff to workplaces post pandemic, including through excellent access to amenities. The effect of this is that poorer quality space is expected to struggle within the market without significant refurbishment. This becomes even more challenging in locations that do not offer worker amenities.
9.254 Evidence suggests that whilst there is a degree of uncertainty relating to occupier space needs, it is anticipated that as lease events, including for example rent reviews, break clauses, lease renewals/ends, occur, there will be a move to consolidate or upgrade space. The theme is an exchange of quantity for quality that needs to be facilitated through planning policy. This could mean a further release of poorer quality stock back to the market coupled with increased take up of and demand for high quality (or grade A) space leading to reduced availability and pressure on the best quality space.
9.255 The NPPF requires that Local Plans should be prepared with the objective of contributing to the achievement of sustainable development “and make sufficient provision for among other uses employment, and other commercial development”.
9.256 The stock of office floor space in B&NES needs to be managed, upgraded and increased to enable the delivery of the identified need for offices, and the Council’s Economic Strategy.
9.257 It is acknowledged that occupiers seeking office space have mixed quality and specification requirements. Large companies seek better quality accommodation, but some smaller occupiers require cheaper space. Changes to government legislation on EPC certification requirements for commercial buildings may lead to cheaper offices becoming unlettable. Whilst larger and well backed companies will take grade A space, and start-ups/micro business will be able to look at the serviced office sector, cost-conscious companies that need their own office may not have options.
9.258 Therefore, the policy approach is to encourage the development of Grade A offices to meet the need for high quality floorspace, and upgrading of Grade B offices. With regard to smaller premises within Georgian buildings these should not be retained where they are of poor quality, however retaining some Georgian stock will provide diversity in supply and meet the needs of certain small occupiers and sectors. Hence, we need to ensure that the policy can protect office stock on a case by case basis.
9.259 The following options in relation to protecting office development from change of use to other higher value uses is as follows:
Option A
Not permit redevelopment / change of use to residential, (including all types of residential plus Purpose Built Student Accommodation) unless it can be robustly evidenced that:
- the site is of poor quality
- no longer suited to current or future business needs
- there is a lack of demand for office use
- there is a supply of available alternative premises in the locality, suitable for any displaced existing occupiers or potential occupiers looking for premises in the locality
In the case of redevelopment change of use to non residential (non Class E) uses, the above criteria would apply. In addition, the proposal will be required to secure suitable alternative employment opportunities of at least equivalent economic benefit.
Issues to be taken into account will be site information including access considerations, EPC maintenance costs, the cost and ability to upgrade the floorspace, and rental information.
Advantages of Option A
- In order to meet the Objectively Assessed Need (OAN) for offices the Council needs to take a number of approaches, including provision of high quality office space. Key to the provision of the office space is the need to protect the office floorspace that we have from redevelopment and change of use to higher value uses, in particular residential.
- The Council notes that there may be circumstances where the loss of some business floorspace, in particular period properties, may be acceptable, but these circumstances can be considered on a case by case basis.
- The loss of all smaller offices would run counter to the objective to maintain a diverse business sector.
Disadvantages of Option A
- The need for consistent information to ensure a consistent approach in implementing the policy.
- The Council recognises that planning permission is not required for changes of use within the E class, and permitted development rights exist outside Bath. The policy will reflect this.
Option B
Above option together with adding the requirement to demonstrate there is a lack of demand for office use by a marketing statement and evidence of marketing for 12 months.
Advantages of Option B
This serves to provide actual market evidence of the level of demand on an objective basis.
Disadvantages of Option B
There is a need to ensure that developers are not manipulating the marketing process.