{"id":7540,"date":"2021-05-09T17:57:40","date_gmt":"2021-05-09T17:57:40","guid":{"rendered":"https:\/\/thebusinessculture.co.uk\/hey\/?p=7540"},"modified":"2021-05-10T12:30:48","modified_gmt":"2021-05-10T12:30:48","slug":"converting-offices-into-living-accommodation","status":"publish","type":"know-how","link":"https:\/\/thebusinessculture.co.uk\/hey\/know-how\/converting-offices-into-living-accommodation\/","title":{"rendered":"Converting Offices into Living Accommodation"},"content":{"rendered":"<p>&nbsp;<\/p>\n<p>We\u2019re dedicated to responding to our clients\u2019 enquiries to full effect, with a recent one being how to convert offices into living accommodation. We don\u2019t mean which colour scheme to use and whether or not to include Wi-Fi in the rent, as we\u2019re focusing on the tax side and how to prevent financial risk.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>General Permitted Development Order<\/strong><\/h2>\n<p>Back in 2015, an amendment to the General Permitted Development Order (GPDO) made the converting of commercial properties into homes much easier. Namely, it removed the need to gain planning permission if the conversion is under the Permitted Development Rights or remains within the same Use Class.<\/p>\n<p>Knowing the Use Class is the first place to start and they can be found on the <a href=\"https:\/\/www.planningportal.co.uk\/info\/200130\/common_projects\/9\/change_of_use\">Planning Portal<\/a> website.<\/p>\n<p><strong> <\/strong><\/p>\n<h2><strong>Converting a commercial property into a home<\/strong><\/h2>\n<p>Once you\u2019ve checked the Use Class and if it\u2019s a case of needing planning permission, you must apply for it before starting any physical work. Even small changes to a building\u2019s structure or layout can result in expensive and time-consuming consequences, so always do it by the book from start to finish.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Why would I need planning permission?<\/strong><\/h2>\n<p>Whilst some office conversion projects won\u2019t need planning permission, some will warrant it in order to ensure that the end result is suitable for both the future tenants and the existing neighbours.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>What kind of restrictions are there?<\/strong><\/h2>\n<p>If the property is a listed building or located within a Conservation Area, planning permission probably won\u2019t be given. The same applies if you\u2019re based within an Area of Outstanding Natural Beauty, a Safety Hazard Area or a Military Explosives Area. Whilst some of these scenarios are unlikely, they\u2019re certainly not impossible.<\/p>\n<p>&nbsp;<\/p>\n<h2><strong>What are the VAT rules?<\/strong><\/h2>\n<p>You\u2019ll be used to paying 20% VAT on most purchases, which typically includes work carried out on an existing building. However, when a commercial property is being transformed into homes, you can usually enjoy a reduced VAT rate of just 5%.<\/p>\n<p>This reduced rate applies to multiple costs, such as:<\/p>\n<ul>\n<li>Work done to walls, floors, roofs, stairs, doors, windows, plumbing and electrics<\/li>\n<li>The provision of power, heat, water and drainage systems<\/li>\n<li>The fitting of kitchen units and light fittings<\/li>\n<li>Any materials purchased by the builder or contractor on the property owner\u2019s behalf, as well as labour costs<\/li>\n<\/ul>\n<p><strong> <\/strong><\/p>\n<h2><strong>What doesn\u2019t the VAT reduction cover?<\/strong><\/h2>\n<p>Multiple items are unfortunately not treated to a lower VAT rate, including:<\/p>\n<ul>\n<li>Fees charged by architects, quantity surveyors and interior designers<\/li>\n<li>Any items that don\u2019t qualify as building materials, such as fitted bathroom furniture and carpets<\/li>\n<li>The hiring of scaffolding<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Is it worth it?<\/strong><\/h2>\n<p>All in all, there are quite a few advantages that come with changing offices and other commercial units into homes:<\/p>\n<ul>\n<li>Commercial properties are built in convenient locations, such as near transportation hubs and retail centres, which is an attractive selling point<\/li>\n<li>There\u2019s often a higher chance of finding a tenant when it\u2019s a residential property, as many businesses are now focusing on remote working and e-commerce, which reduce the need for a physical base<\/li>\n<li>Your renovation project could play a role in breathing new life into an area that desperately needs it<\/li>\n<li>It can prove to be a highly lucrative move and a strong long-term investment<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Need more advice?<\/strong><\/h2>\n<p>If you\u2019re considering changing commercial premises into residential properties, fill in our <a href=\"https:\/\/www.treybridge.co.uk\/contact-us\/\"><span class=\"bon f8\">contact form<\/span><\/a> and we\u2019ll help you to make it a smooth and stress-free process.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; We\u2019re dedicated to responding to our clients\u2019 enquiries to full effect, with a recent one being how to convert offices into living accommodation. We don\u2019t mean","protected":false},"author":12312793,"featured_media":7539,"template":"","know_how_category":[],"class_list":["post-7540","know-how","type-know-how","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/know-how\/7540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/know-how"}],"about":[{"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/types\/know-how"}],"author":[{"embeddable":true,"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/users\/12312793"}],"version-history":[{"count":1,"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/know-how\/7540\/revisions"}],"predecessor-version":[{"id":7543,"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/know-how\/7540\/revisions\/7543"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/media\/7539"}],"wp:attachment":[{"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/media?parent=7540"}],"wp:term":[{"taxonomy":"know_how_category","embeddable":true,"href":"https:\/\/thebusinessculture.co.uk\/hey\/wp-json\/wp\/v2\/know_how_category?post=7540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}