The Retail Motor Industry Federation has revealed that a planning loophole that had allowed dealer sites to become general retail outlets without the need for planning permission, is to be closed next month.

The new rules are being brought in by the Government to curb the uncontrolled spread of out-of-town superstores.

The changes are included in the town and country planning (General Permitted Development) (Amendment) Order 2005, which takes effect on April 21.

Graham Coleshill, RMI legal director, says: “Under the existing rules, certain kinds of car dealer premises could be converted for use as a shop without the need for planning permission, provided the change did not include physical alterations that would fall under general planning requirements.

“This regime enabled businesses operating large out-of-town showrooms to sell their sites to conventional retailers for use as superstores without the need for planning permission, and this is what Government is trying to control.”

According to Coleshill, the impact on most motor retailers will be minimal: “For most businesses the new rules will have little effect. The majority of small and medium-sized dealers are based in-town, and a change of use for them would entail building works, requiring planning permission.”

Coleshill adds: “The rules are not intended to prevent dealers from selling their sites for conversion to superstores. The idea is to protect local business infrastructures from the effects of unplanned retail developments.”