THE PROPERTY FILTER TAKE
PropertyWire reported on 28 August 2026 that a mismatch between permitted development rights and available finance products is creating challenges for landlords converting commercial buildings into homes.
The build cost implication is a timing one: if underwriting becomes the slow step, your conversion clock runs on the lender's schedule rather than the planning authority's.
Consider speaking to your broker about how a lender treats a Class MA scheme before you commit to the purchase.
Landlords converting shops and offices into homes are finding the planning route easier than the funding. PropertyWire reported on 28 August 2026 that a mismatch between permitted development rights and available finance products is creating challenges for these landlords. Permitted development finance, in other words, has not fully adapted to the planning freedom that Class MA created.
What does Class MA actually allow?
Class MA sits in Schedule 2, Part 3 of the Town and Country Planning (General Permitted Development) (England) Order 2015. It permits a change of use from Class E (commercial, business and service premises, which covers shops, offices and similar units) to Class C3 (dwellinghouses, meaning ordinary homes). That is the appeal of the route. PDR (permitted development rights, the mechanism that allows a change of use without a full planning application) strips out the planning risk. On a commercial-to-residential conversion strategy, that risk normally sits right at the front.
The Order's own title limits it to England. Planning is devolved, so Scotland, Wales and Northern Ireland operate their own regimes and Class MA has no effect in those three nations. Investors working across borders may wish to check the local route before assuming the same conversion is available, and our free property resources hub is a starting point.
Why does the finance gap matter on a conversion?
According to PropertyWire (28 August 2026), lenders' assessment criteria have not fully adapted to this borrower category. The publication's summary did not name the lenders involved or set out which criteria fall short. The full article was not reachable at the time of writing, so the scale of the gap remains unquantified. Anyone weighing up the funding side may find broader context in our negotiation and finance coverage.
The timeline for a conversion is what absorbs the damage. A building mid-conversion produces no rent, so every extra month spent arranging finance is another month of holding costs. Before committing to a Class MA purchase, you may wish to model how the finished units stack up under a lender's stressed rate using our free stress test calculator.
Key takeaways
Class MA, in Schedule 2, Part 3 of the Town and Country Planning (General Permitted Development) (England) Order 2015, allows Class E commercial premises to become Class C3 homes without a full planning application.
PropertyWire reported on 28 August 2026 that lenders' assessment criteria have not fully adapted to landlords using this conversion route.
Class MA is England-only. Planning is devolved, so the other 3 UK nations run their own permitted development regimes.
The publisher's summary named no lenders and gave no figures for the size of the finance gap.
Frequently asked questions
What is Class MA permitted development?
Does Class MA apply in Scotland, Wales or Northern Ireland?
What is the finance gap being reported?
Does Class MA remove the need to speak to the council?
