When the UK introduced Class E in 2020, it was designed to bring flexibility to the high street and commercial property. By grouping together retail, office, leisure, and medical uses under a single planning class, it removed many of the barriers that previously slowed down change.

A 2023 study by the Local Government Association and Quod provided one of the first assessments of how Class E was beginning to function in practice. It identified early patterns of diversification away from traditional retail, with growth in healthcare, food and beverage and service-led occupiers.

However, it also made one key point clear: the full impact of Class E would take time to emerge.

Two to three years on, those early signals have now become much more defined structural trends.

So, what are commercial properties actually being converted into today?

From Shops to Services

One of the clearest long-term shifts is the move away from traditional retail toward service-led uses.

Vacant shop units are increasingly becoming:

• Cafés and food outlets
• Beauty and personal care businesses
• Healthcare and wellness providers

Where early analysis in 2023 suggested this trend was emerging, it is now one of the most consistent patterns across UK high streets.

In practice, this is visible in the transition of retail units to occupiers such as food and drink operators, barbers, nail salons and aesthetic clinics. These uses prioritise regular footfall and repeat visits. They are also part of the experiential leisure economy making them better suited to current high street conditions.

Healthcare: From Emerging Trend to Core Use Class Driver

Among the strongest outcomes identified in the 2023 LGA/Quod study was the rise of healthcare within Class E space.

At that stage, it was described as a growing but still secondary trend.

Today, it is one of the most dominant forms of occupation in repurposed retail units.

Retail properties are increasingly being converted into:

• Dental practices
• Physiotherapy clinics
• Mental health and counselling spaces
• Aesthetic and cosmetic treatment centres

This is particularly visible in town centres where former banks, chain stores and department store satellites have been repurposed into healthcare units.

However this type of conversion has caused some concerns about the visual and experiential quality of the high street. A growing number of local authorities and Business Improvement Districts have highlighted the risk of “dead frontage”.

This typically occurs where active retail shopfronts are replaced by uses with limited street engagement resulting in a reduction in window-shopping appeal and passive footfall because the units can appear closed or inactive from the outside, even when fully operational.

The Rise of Flexible and Creative Uses

The emergence of flexible workspace and creative occupation within Class E units has developed into a more established secondary market for high street space.

Vacant units are increasingly being used as:

• Co-working hubs
• Creative studios
• Content production spaces

This includes photographers, designers, podcasters and digital content creators, who are reshaping the definition of “office” space at street level.

Leisure and Experience-Led Conversions

Leisure was another category highlighted in the early 2023 analysis as a potential growth area.

Units previously occupied by retail are now being converted into:

• Boutique gyms and fitness studios
• Immersive entertainment spaces
• Interactive leisure experiences

Large health club operators and value gym chains have become common occupiers of former retail units, particularly in urban centres and retail parks. Alongside this, experiential formats such as escape rooms, simulation gaming, and immersive art spaces have expanded, helping to extend high street activity beyond traditional shopping hours.

A More Functional High Street

Alongside more visible occupiers, Class E has also supported a quieter but important shift toward functional, service-based uses.

These include:

• Convenience retail
• Parcel collection and logistics services (parcel lockers and delivery hubs have become increasingly common)
• Repair, trade and maintenance services

While less visually transformative, these uses contribute significantly to maintaining daily footfall and local utility.

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