Business

Changing pubs into homes to be made harder under new rules

BBC Business · 2026-08-16

AI SUMMARY

• What happened: The UK government is implementing new planning rules that will make it more difficult to convert pubs into housing or offices, requiring developers to prove that a pub business cannot be sustained. • Why it matters: This change aims to protect community pubs from closure and conversion, addressing concerns from hospitality groups about the impact of rising costs and taxes on pub viability. • What to watch next: The updated National Planning Policy Framework (NPPF) will take effect on Monday, and its impact on pub closures and housing development around transport hubs will be closely monitored.

Image source, Getty ImagesByPeter Ruddick and Mitchell Labiak, Business reportersPublished9 minutes agoTurning pubs into housing or offices will be made harder as part of changes to government planning rules in England.The updated National Planning Policy Framework (NPPF) will come into force on Monday and is expected to contain more protections for pubs at threat of closure for conversion to another use.A previous consultation on the plans only gave the protection to the last pub in the area.However, pub and hospitality groups say taxes and employment costs are the big reasons why pubs are closing. Meanwhile, the Conservatives said the Labour government is "failing abysmally" to meet its housing targets.British pubs closing at a rate of almost two per day in 2026Published5 MayWhy there's a row about 'vertical drinking' in central LondonPublished7 AugustTo go ahead with a change of use under the new rules, developers will need to provide evidence that there is no reasonable prospect of keeping a pub business running.The evidence will need to include proof it was marketed for sale for at least 12 months.A government spokesperson told the BBC councils would need to assess the impact on a community of a change of use.The rules will reportedly stop owners from deliberately killing off trade in order to justify a closure, protecting pubs which have been historically successful.The NPPF sets out government's planning policies for England and how they should be applied by local authorities.Scotland, Wales, and Northern Ireland have their own devolved planning frameworks and laws.'Closures avoidable'The Campaign for Real Ale has previously said that pubs are being "lost forever to conversion or demolition as developers look to cash in on the desirable locations and unique architecture of pubs and social clubs".The British Beer and Pub Association and UKHospitality have also campaigned against pub closures, with both largely blaming tax rises and other costs.Allen Simpson, chief executive of UKHospitality, said: "The biggest issue facing hospitality businesses is costs like VAT and business rates pushing pubs out of business in the first place."Anything that makes it harder to take these important assets away from their communities has to be welcomed, but the government should focus on continuing its strong start on fixing the harm done to hospitality over the past two years."In July, the Labour government said pubs, social clubs and live music venues in England will be given a 20% cut to business rates on top of rates relief announced in January.The NPPF update being published Monday also includes default approval for homes being built around railway stations in England in an attempt to increase housebuilding numbers.Housing Secretary Angela Rayner said: "By unlocking thousands of homes around well-connected transport hubs, we're helping people live closer to work, school and the services they rely on, while backing local businesses and driving growth in our communities."The update also means that some groups will no longer need to be consulted on housing development plans as part of the process of getting permission.Under the changes, Sport England will continue to advise on significant cases and the Gardens Trust and Theatres Trust will still be notified of relevant applications.Labour has set a target to build 1.5 million homes by 2029. According to official data, external, it has so far built 392,000 homes in England since coming into power in July 2024.Shadow housing secretary Sir James Cleverly said Labour "failing abysmally" to meet their target because of taxes and red tape."To try to fix their own mess, Labour are planning a power grab, seizing control from local communities and forcing them to accept development in the wrong areas because Labour won't build in the right areas," he added.Related topicsCompaniesHousingPlanning permissionPubsMore on this storyWhy the Soho spat over standing while drinking could be the first of manyPublished1 day agoPubs cheer business rates relief while other firms 'left out in the cold'Published23 July

Source: BBC Business
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