C2 or C3? Why This Planning Grey Area Still Confuses Everyone and Why It Matters for Housing and Affordability

In this Housing LIN Viewpoint (no. 115), Ifti Maniar, Director of Planning at WWA, argues that outdated, inconsistent C2/C3 planning rules hinder specialist housing for England and Wales’ ageing population, causing delays, affordability issues, and planning uncertainty.

This viewpoint argues that England and Wales face a growing housing challenge for older people, with an ageing population creating urgent demand for “later-living” homes. It highlights that the planning system’s distinction between C2 (residential institutions) and C3 (dwellinghouses) is outdated and inconsistently applied, causing confusion for councils, developers and courts.

This inconsistency affects housing counts, affordable housing obligations, and scheme viability, particularly for extra care, supported living and retirement housing. Ifti Maniar calls for a national rethink or legislative reform to standardise definitions, streamline planning decisions and ensure sufficient specialist housing to meet future demographic needs.