Permitted Development Rights

In the ten years or so following the introduction of the Class Q Permitted Development Prior Approval route for converting redundant farm buildings into dwellings, more than 21,500 Class Q applications have been submitted.

The historic prior approval rate is 61%. In the case of a Class R agricultural-to-commercial change of use, there are no published statistics. Still, if you’ve been thinking about diversifying your farm, there’s genuinely good news: planning rules in England are shifting — and they’re shifting in your favour. The government has been quietly making it easier and faster to get rural development off the ground, with major changes to the National Planning Policy Framework (NPPF) and a significant expansion of Permitted Development Rights (PDR). The upshot? In many cases where the building is suitable, you can convert redundant farm buildings or set up new rural enterprises without going through the full planning application process.

Here’s a rundown of the key changes that could make a real difference to your plans:

Permitted Development Rights (PDR) — more freedom than ever

One of the biggest changes is the expansion of PDR, which means farmers now have much greater freedom to repurpose existing buildings for commercial or residential use — often without needing to go through the full planning process at all.

• Class R (Commercial Use): Got a redundant agricultural building? You may be able to convert up to 1,000 m² of floor space into flexible commercial uses — think offices, light industrial units, storage, hotels, or even a café—no full planning application required.
• Class Q (Residential Conversions): You can convert agricultural buildings into up to 10 homes (with a cumulative cap of 1,000 m²). It’s a popular route for farmers looking to generate long-term rental income or bring redundant buildings back to life.

There are prior approval requirements to navigate, but they’re far less onerous than a full planning application — and where they can be met, PDR is one of the most efficient tools available for changing the use of a redundant building.

The new NPPF — cutting through the red tape

The recent overhaul of the National Planning Policy Framework is designed to do exactly what it says on the tin: strip back the red tape and make it easier for rural businesses to get things done. Here’s what’s changed:

• More support for farm infrastructure: Local Planning Authorities are now explicitly directed to support development that the farming industry needs — including farm shops, on-farm reservoirs, greenhouses, polytunnels, and holiday lets. These aren’t fringe uses anymore; they’re built into the framework.
• Less red tape for rural offices and commercial spaces: The updated NPPF drops the restrictive “sequential tests” that used to apply to small-scale rural offices and other development. If a countryside location makes sense for what you’re doing, you shouldn’t be held back — and now, largely, you won’t be.

Biodiversity Net Gain (BNG) — smaller projects get a break

BNG requirements have been one of the more daunting aspects of recent planning reform, particularly for smaller farms. But the system has now built in some sensible exemptions that should take the pressure off for many diversification projects:

• If your development site is 0.2 hectares or below, you’re exempt from mandatory BNG requirements altogether. That’s a significant relief for smaller-scale projects, removing both cost and administrative burden in one go.
• Short-term agritourism or diversification pilots with planning permissions lasting up to five years are also exempt. So if you’re testing the water before committing, you won’t be hit with a full BNG assessment.

Selling BNG units — a new income stream worth exploring

Here’s something that might surprise you: your land could actually generate income through the BNG system, not just be subject to it. If you have land with potential for habitat improvement, you may be able to sell Biodiversity Net Gain units to developers who need to meet their own BNG obligations elsewhere. The units are calculated based on the improvement above your land’s current biodiversity baseline — so you can’t “double count” gains, but where the potential is there, it can be significant. To get started, you’ll need a baseline habitat survey using the statutory Defra Biodiversity Metric, some modelling of the potential unit uplift, and a habitat enhancement plan. From there, you’d enter into a 30-year legal agreement with the local planning authority. Once the site is officially registered, you can sell those units on to developers — either directly, through a brokerage platform, or by partnering with a habitat bank operator. It’s a long-term commitment, but for the right land, it can be a genuinely valuable new income stream.

Contact our Agricultural Law solicitors today

If you’d like to explore any of these opportunities further — or if you’re ready to move forward with a diversification project — we’d love to help.  Please get in touch with a member of our Agriculture and Estates team or complete this online enquiry form, and we will be happy to assist you with your enquiry.