Types of Investment

Abstract

The established classification of property investments changed in the 1980s with the addition of high-tech developments, retail warehouses, retail parks, mixed used developments and speciality shops. Workshop conversions with residential or studio space also created an innovative sub-sector. Some of these new categories were encouraged by the changes in planning controls. The Town and Country Planning Use Classes Order 1987 lists the categories of property use and within each classification it is possible to change use without any additional planning consent. This legislation established the class B1, which is a business class allowing movement across the divide from light industrial use to office use. This change caused a remarkable shake-up in the office sector but more so in the industrial sector. Business space became a recognised sector of the investment market dealing with B1 properties, and in addition the concept of business parks was established as opposed to dealing with a block of offices or an industrial estate. The legislation allowed this change of use within the band of uses as long as substantial external physical alterations were not required. However, any change of use which required movement between one class and another required specific consent. Class B1, as well as combining office use with light industrial use, also generally indicated a high-tech usage or specification to the building.