Guidance: Town centres and retail
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Provides guidance on planning for retail and other town centre
uses. Published 3 March 2014 Last updated 22 July 2019
— see all updates From: Ministry of Housing, Communities &
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Provides guidance on planning for retail and other town centre uses.
Published 3 March 2014
Last updated 22 July 2019 — see all updates ContentsThis replaces the previous guidance on Ensuring the vitality of town centres. See previous version Where plans are being prepared under the transitional arrangements set out in Annex 1 to the revised National Planning Policy Framework, the policies in the previous version of the framework published in 2012 will continue to apply, as will any previous guidance which has been superseded since the new framework was published in July 2018. If you’d like an email alert when changes are made to planning guidance please subscribe. Planning for town centre vitality and viabilityWhat role can planning authorities play in supporting the management, adaptation and growth of town centres? For planning purposes, town centres as defined in the National Planning Policy Framework comprise a range of locations where main town centre uses are concentrated, including city and town centres, district and local centres (and so includes places that are often referred to as high streets). Local planning authorities can take a leading role in promoting a positive vision for these areas, bringing together stakeholders and supporting sustainable economic and employment growth. They need to consider structural changes in the economy, in particular changes in shopping and leisure patterns and formats, the impact these are likely to have on individual town centres, and how the planning tools available to them can support necessary adaptation and change. A wide range of complementary uses can, if suitably located, help to support the vitality of town centres, including residential, employment, office, commercial, leisure/entertainment, healthcare and educational development. The same is true of temporary activities such as ‘pop ups’, which will often benefit from permitted development rights. Residential development in particular can play an important role in ensuring the vitality of town centres, giving communities easier access to a range of services. Given their close proximity to transport networks and local shops and services, local authorities may wish to consider locating specialist housing for different groups including older people within town centres or edge of centre locations. Evening and night time activities have the potential to increase economic activity within town centres and provide additional employment opportunities. They can allow town centres to diversify and help develop their unique brand and offer services beyond retail. In fostering such activities, local authorities will also need to consider and address any wider impacts in relation to crime, noise and security. Paragraph: 001 Reference ID: 2b-001-20190722 Revision date: 22 07 2019 What planning tools are available to local planning authorities to help them shape and support town centres?The key way to set out a vision and strategy for town centres is through the development plan and (if needed) supplementary planning documents. Planning policies are expected to define the extent of primary shopping areas. Authorities may, where appropriate, also wish to define primary and secondary retail frontages where their use can be justified in supporting the vitality and viability of particular centres. In addition, a range of other planning tools can help to support town centres to adapt and thrive:
Paragraph: 002 Reference ID: 2b-002-20190722 Revision date: 22 07 2019 Which stakeholders are important when planning for town centres?Effective and creative leadership by local authorities and other stakeholders is key in bringing forward a vision for town centres that meets wider economic and community needs. Stakeholders with an interest in the success of the town centre should be encouraged to engage in the evolving vision for it. The stakeholders that need to be involved will depend on the local context, but could include:
Paragraph: 003 Reference ID: 2b-003-20190722 Revision date: 22 07 2019 What can a town centre strategy contain?Any strategy should be based on evidence of the current state of town centres and the opportunities that exist to accommodate a range of suitable development and support their vitality and viability. Strategies can be used to establish:
Paragraph: 004 Reference ID: 2b-004-20190722 Revision date: 22 07 2019 What if future development needs cannot be accommodated in the town centre?It may not be possible to accommodate all forecast needs for main town centre uses in a town centre: there may be physical or other constraints which make it inappropriate to do so. In those circumstances, planning authorities should plan positively to identify the most appropriate alternative strategy for meeting the identified need for these main town centre uses, having regard to the sequential and impact tests. This should ensure that any proposed main town centre uses which are not in an existing town centre are in the best locations to support the vitality and vibrancy of town centres, and that no likely significant adverse impacts on existing town centres arise, as set out in paragraph 90 of the National Planning Policy Framework. Paragraph: 005 Reference ID: 2b-005-20190722 Revision date: 22 07 2019 Which indicators are useful when planning for town centres and high streets?The following indicators, and their changes over time, may be relevant in assessing the health of town centres, and planning for their future:
Paragraph: 006 Reference ID: 2b-006-20190722 Revision date: 22 07 2019 Permitted development and change of use in town centresWhen is planning permission not required for changes involving town centre uses?A change of use of land or buildings requires planning permission if it constitutes a material change of use. Many uses in town centres fall within the A1 ‘shops’ use class. Movement from one primary use to another within the same use class is not development, and does not require planning permission. Therefore, a shoe shop may become a book shop, hairdresser, or post office etc. without the need for a planning application. Similarly, movement within the A2 ‘financial and professional services’ use class does not require planning permission. A broad range of national permitted development rights support appropriate changes of use in town centres. These rights are set out in the Town and Country Planning (General Permitted Development) (England) Order 2015, as amended. Some permitted development rights allow the change of use without any application process. This includes the following:
Further permitted development rights allow for a change of use subject to prior approval by the local planning authority on specific planning matters:
Paragraph: 007 Reference ID: 2b-007-20190722 Revision date: 22 07 2019 Are there other permitted development rights that can support flexibility in town centres?To support new ventures and pop-ups and avoid buildings being left empty, a separate right allows a range of uses (such as offices, shops, financial and professional services, restaurants and cafes, hot food takeaways, assembly and leisure uses) to convert temporarily to another use (such as office, shop, financial and professional service, restaurant) for a single continuous period of up to three years. This allows start-ups to test a new business model, and then to seek planning permission for the permanent change of use on that or another site. The same right now allows for the temporary change of use to specified community uses (health centre, art gallery, museum, public library, public hall or exhibition hall) to provide a greater mix of uses on the high street and increase footfall, and bring community uses closer to communities. Other permitted development rights provide for physical works to support the operation of shops or financial and professional services, including:
Paragraph: 008 Reference ID: 2b-008-20190722 Revision date: 22 07 2019 Assessing proposals for out of centre developmentSequential testWhat is the sequential test?The sequential test guides main town centre uses towards town centre locations first, then, if no town centre locations are available, to edge of centre locations, and, if neither town centre locations nor edge of centre locations are available, to out of centre locations (with preference for accessible sites which are well connected to the town centre). It supports the viability and vitality of town centres by placing existing town centres foremost in both plan-making and decision-taking. Paragraph: 009 Reference ID: 2b-009-20190722 Revision date: 22 07 2019 How should the sequential approach be used in plan-making?In plan-making, the sequential approach requires a thorough assessment of the suitability, viability and availability of locations for main town centre uses. It requires clearly explained reasoning if more central opportunities to locate main town centre uses are rejected. The checklist below sets out the matters that need to be considered when using the sequential approach as part of plan-making:
Paragraph: 010 Reference ID: 2b-010-20190722 Revision date: 22 07 2019 How should the sequential test be used in decision-making?It is for the applicant to demonstrate compliance with the sequential test (and failure to undertake a sequential assessment could in itself constitute a reason for refusing permission). Wherever possible, the local planning authority is expected to support the applicant in undertaking the sequential test, including sharing any relevant information. The application of the test will need to be proportionate and appropriate for the given proposal. Where appropriate, the potential suitability of alternative sites will need to be discussed between the developer and local planning authority at the earliest opportunity. The checklist below sets out the considerations that should be taken into account in determining whether a proposal complies with the sequential test:
In line with paragraph 86 of the National Planning Policy Framework, only if suitable sites in town centre or edge of centre locations are not available (or expected to become available within a reasonable period) should out of centre sites be considered. When considering what a reasonable period is for this purpose, the scale and complexity of the proposed scheme and of potentially suitable town or edge of centre sites should be taken into account. Compliance with the sequential and impact tests does not guarantee that permission will be granted – all material considerations will need to be considered in reaching a decision. Paragraph: 011 Reference ID: 2b-011-20190722 Revision date: 22 07 2019 How should locational requirements be considered in the sequential test?Use of the sequential test should recognise that certain main town centre uses have particular market and locational requirements which mean that they may only be accommodated in specific locations. Robust justification will need to be provided where this is the case, and land ownership does not provide such a justification. Paragraph: 012 Reference ID: 2b-012-20190722 Revision date: 22 07 2019 How should viability be promoted?The sequential test supports the Government’s ‘town centre first’ policy. However as promoting new development on town centre locations can be more expensive and complicated than building elsewhere, local planning authorities need to be realistic and flexible in applying the test. Paragraph: 013 Reference ID: 2b-013-20190722 Revision date: 22 07 2019 Impact testWhat is the impact test?The purpose of the test is to consider the impact over time of certain out of centre and edge of centre proposals on town centre vitality/viability and investment. The test relates to retail and leisure developments (not all main town centre uses) which are not in accordance with up to date plan policies and which would be located outside existing town centres. It is important that the impact is assessed in relation to all town centres that may be affected, which are not necessarily just those closest to the proposal and may be in neighbouring authority areas. Paragraph: 014 Reference ID: 2b-014-20190722 Revision date: 22 07 2019 When should the impact test be used?The impact test only applies to proposals exceeding 2,500 square metres gross of floorspace* unless a different locally appropriate threshold is set by the local planning authority. In setting a locally appropriate threshold it will be important to consider the:
As a guiding principle impact should be assessed on a like-for-like basis in respect of that particular sector (e.g. it may not be appropriate to compare the impact of an out of centre DIY store with small scale town-centre stores as they would normally not compete directly). Retail uses tend to compete with their most comparable competitive facilities. Conditions may be attached to appropriately control the impact of a particular use. Where wider town centre developments or investments are in progress, it will also be appropriate to assess the impact of relevant applications on that investment. Key considerations will include:
Paragraph: 015 Reference ID: 2b-015-20190722 Revision date: 22 07 2019 How should the impact test be used in plan-making?If plan policies are based on meeting the assessed need for town centre uses in accordance with the sequential approach, issues of adverse impact should not arise. The impact test may however be useful in determining whether proposals in certain locations would impact on existing, committed and planned public and private investment, or on the role of particular centres. Paragraph: 016 Reference ID: 2b-016-20190722 Revision date: 22 07 2019 How should the impact test be used in decision-taking?It is for the applicant to demonstrate compliance with the impact test in support of relevant applications. Failure to undertake an impact test could in itself constitute a reason for refusing permission. The impact test will need to be undertaken in a proportionate and locally appropriate way, drawing on existing information where possible. Ideally, applicants and local planning authorities should seek to agree the scope, key impacts for assessment, and level of detail required in advance of applications being submitted. Paragraph: 017 Reference ID: 2b-017-20190722 Revision date: 22 07 2019 Is there a checklist for applying the impact test?The following steps need to be taken in applying the impact test:
A judgement as to whether the likely adverse impacts are significant can only be reached in light of local circumstances. For example, in areas where there are high levels of vacancy and limited retailer demand, even very modest trade diversion from a new development may lead to a significant adverse impact. Where evidence shows that there would be no likely significant impact on a town centre from an edge of centre or out of centre proposal, the local planning authority must then consider all other material considerations in determining the application, as it would for any other development. The design year for impact testing will need to be selected to represent the year when the proposal has achieved a ‘mature’ trading pattern. This is conventionally taken as the second full calendar year of trading after the opening of each phase of a new retail development, but it may take longer for some developments to become established. Paragraph: 018 Reference ID: 2b-018-20190722 Revision date: 22 07 2019 FootnotesGross retail floorspace (or gross external area) is the total built floor area measured externally which is occupied exclusively by a retailer or retailers, excluding open areas used for the storage, display or sale of goods. Trade draw is the proportion of trade that a development is likely to receive from customers within and outside its catchment area. It is likely that trade draw will relate to a certain geographic area (i.e. the distance people are likely to travel) and for a particular market segment (e.g. convenience retail). The best way of assessing trade draw where new development is proposed is to look at existing proxies of that type of development in other areas. |