What “Use Class E” means for offices & shop rentals

If you’re renting an office or a shop in the UK, you’ve probably come across the term “Use Class E” – often in property listings, lease discussions or conversations with agents and solicitors. For many tenants, it’s mentioned as an important detail, but not always clearly explained.

This guide explains Use Class E, focusing on what it means for office and shop tenants, what it allows, and what to check before signing a lease — so you can make informed decisions with confidence.

Use Class E is a UK planning classification that covers a wide range of commercial, business and service uses. It applies in England only and was introduced on 1 September 2020 to simplify how commercial buildings are used and adapted over time.

Its purpose was to consolidate a number of previously separate commercial use classes into a single, broader category. This is due to the “death of the high street”, which meant many shops were sitting empty because the law made it too hard to turn them into something else. Thus, this Use Class helps reduce the need for planning permission when changing between similar commercial uses.

Legally, a change of use within the same use class is not development for the purposes of the Town and Country Planning Act 1990. As a result, moving from one lawful Class E use to another Class E use does not require planning permission, provided no other planning controls apply.

Use Class E replaced and absorbed:

• former Class A1 (shops)
• Class A2 (financial and professional services)
• Class A3 (restaurants and cafés)
• parts of Class D1 (non-residential institutions)
• parts of Class D2 (assembly and leisure)

These uses are now treated as a single planning class.

For most businesses renting office space, Use Class E will be the relevant planning category, even if it’s not something they actively think about day to day. It’s particularly important for businesses that expect to grow, adapt their space, or combine different types of activity within one office.

From a planning perspective, offices fall under Use Class E(g)(i), which covers buildings used for operational or administrative functions. In simple terms, this includes the vast majority of modern office occupiers.

This typically covers:

• professional services such as legal, financial, consultancy and property businesses
• head offices and administrative hubs
• technology, digital and software companies
• media, marketing and creative agencies
• architecture, design and engineering practices

1.  Offices with additional or hybrid uses

Use Class E is especially relevant for businesses whose offices are not purely desk-based. Many modern workplaces include client-facing areas, studios, meeting suites or collaborative spaces. Because Use Class E allows “use, or part use” for a range of commercial purposes, these hybrid office setups can still fall within the same planning class.

Use Class E also covers research and development activity, which is important for tech-led and product-focused businesses. Offices that include testing, development or experimentation alongside administrative work will often remain within Use Class E, provided the activity doesn’t cross into industrial use or cause disruption to neighbouring properties.

2. Who needs to understand Use Class E – and why?

Not every tenant needs to become an expert in planning law, but understanding Use Class E is particularly useful if:

• you’re taking on your first commercial lease
• your business is growing or likely to change how it uses space
• you want the option to adapt your office use in the future
• your office includes client-facing, studio or R&D functions

Knowing that your office sits within Use Class E can give reassurance that your use is lawful from a planning point of view, and that you’re less likely to need planning permission if your business evolves.

3. Planning use vs lease clauses

It’s important to separate planning use from lease restrictions. Use Class E sets out what the planning system allows, but the lease will still define what you are contractually permitted to do in the space. Some leases restrict use more tightly than planning law requires, particularly in multi-let buildings.

Use Class E covers most everyday shop and service-based retail uses, which is one of the reasons it’s so relevant for tenants looking at high street or mixed-use locations.

From a planning perspective, shops fall under Use Class E where they are used for the display or retail sale of goods:

• retail shops selling goods such as clothing, food (for consumption off premises), books or household items
• showrooms and boutique retail spaces
• cafés and restaurants where food and drink are mainly consumed on the premises
• beauty salons, hairdressers and nail bars
• gyms, fitness studios and indoor recreation uses
• health and wellbeing uses such as clinics, dentists or physiotherapy practices
• service-based businesses like estate agents, travel agents and banks

1. What doesn’t fall under Use Class E?

It’s important to note that hot food takeaways are not included in Use Class E and usually fall into a separate planning category. Similarly, some uses that operate more like venues or late-night destinations may fall outside Class E and be treated as sui generis.

As with offices, planning use and lease terms are not the same thing. While Use Class E may allow flexibility from a planning standpoint, the lease will still control what a tenant is permitted to operate from the premises.

2. What does sui generis mean in planning terms?

In planning, sui generis simply means “of its own kind”. A sui generis use is one that doesn’t fall neatly into any standard use class, including Use Class E, because of its specific nature or impact.

Unlike Use Class E, sui generis uses do not benefit from flexibility. Each use is treated individually, and changing to or from a sui generis use will usually require planning permission, even if the new use feels similar in practice.

Common examples of sui generis uses:

• hot food takeaways
• pubs, bars and drinking establishments
• nightclubs
• casinos and betting shops
• theatres and cinemas
• large music or event venues
• certain leisure or entertainment uses

These uses are typically classed as sui generis because they can have a greater impact on surrounding shopping areas. For example: through noise, late opening hours, footfall or servicing requirements.

Why sui generis matters: For tenants, sui generis status is important because it affects how easy it is to change or adapt a space. A property with a sui generis use:

• cannot automatically change to another use without planning permission
• may face stricter controls from the local authority
• often has more limited future flexibility compared to a Use Class E property

The simple takeaway: If flexibility is important to your business, it’s always worth checking whether a property is Use Class E or sui generis early on. Sui generis uses aren’t a problem in themselves, but they do require more careful consideration and, in many cases, early planning advice.

Although Use Class E is designed to give tenants more flexibility, it does have clear limits. Understanding these early is important, particularly if your business model involves food, late trading, or activities that could affect neighbouring properties.

Use Class E does not cover:

• Hot food takeaways
• Pubs, bars and drinking establishments
• Nightclubs, casinos and large entertainment venues
• Residential use: Class E is strictly commercial. Using a unit as living accommodation, or converting it to residential use, is not permitted without separate planning approval or permitted development rights.

Restrictions that still apply, even within class E:

Even where a use falls within Class E, flexibility is not unlimited. Tenants should be aware that:

• Local planning controls may restrict Class E use: Article 4 Directions, conservation area controls or planning conditions attached to a building can remove or limit Class E flexibility, particularly in central and historic locations.
• External changes often require permission: Changes such as new shopfronts, signage, extraction equipment or structural alterations may still need planning approval, even if the use itself is Class E.
• Licensing is separate from planning: Activities involving alcohol sales, extended opening hours or regulated services may require licences, regardless of planning use.
• The lease can be more restrictive than planning law: A property may have Class E planning use, but the lease may limit how the space can be used or require landlord consent for any change.

Before committing to an office or shop lease, it’s important to look beyond the headline rent and make sure the space genuinely works for your business — now and in the future. A few checks early on can prevent costly issues later.

1. Planning use and permitted use

• Confirm the lawful planning use of the property (for example, Use Class E or sui generis).
• Check that your intended use matches both the planning status and the permitted use in the lease.
• If flexibility matters to you, make sure the lease doesn’t restrict use more tightly than planning law does.

2. Length of lease and flexibility

• Understand the length of the term and whether it aligns with your business plans.
• Check for break clauses — when they can be exercised and on what conditions.
• Clarify whether the lease allows assignment or subletting if your circumstances change.

3. Repair, condition and dilapidations

• Establish what condition the space is being handed over in.
• Check whether the lease is fully repairing, and what that means in practice.
• Ask whether a schedule of condition is being provided to limit future dilapidations liability.

4. Costs beyond the rent

• Confirm the service charge, what it covers, and how it’s calculated.
• Check responsibility for business rates, utilities and insurance.
• Understand any rent-free periods and when rent payments actually begin.

5. Fit-out and alterations

• Make sure the lease allows you to carry out the fit-out you need, including layout changes, signage or equipment.
• Check whether landlord consent is required for alterations, and how that process works.
• If you may need to adapt the space later, confirm how flexible the lease is.

6. Building rules and operational restrictions

• Review any building regulations covering access, opening hours, deliveries or noise.
• For shop tenants, check restrictions around signage, frontage changes and servicing.
• For office tenants, confirm access hours and security arrangements.

If you’re considering office or shop space under Use Class E, it helps to speak to a landlord who understands both the planning framework and how buildings are used in practice.

The Langham Estate (TLE) is one of the principal landowners and property managers in Fitzrovia, with a long-established portfolio of office, retail and mixed-use buildings close to Regent Street. Their team works closely with tenants to ensure spaces are suitable not just on day one, but as businesses grow or adapt over time.