HMO LEGISLATION in the Sunderland Echo Property Supplement
HMO LEGISLATION
Rental properties are in high demand at present as many people struggle to pay or arrange mortgages due to the economic climate. There are also many investors who buy the Echo Property Supplement that be searching for investment properties.
Within the last year, significant changes have taken place which affect landlords who rent properties to more than one ‘household’. We thought it might be appropriate to discuss the new changes in legislation governing Houses in Multiple Occupation (HMO) and their affect on landlords.
The definition of a ‘House in Multiple Occupation’ can be found at www.communities.gov.uk but in broad terms, it is a building, or part of a building (e.g. a flat) which is occupied by more than one household and in which more than one household shares an amenity such as a bathroom, toilet or cooking facilities. A ‘household’ is defined as families, single persons and co-habiting couples. Wider definitions relate to the number of households, converted buildings, self-contained flats and storey heights.
On the 6th of April 2010 controversial new law came into place which required landlords to gain planning permission if they wanted to let out their HMO to three or more unrelated ‘households’. The Town and Country Planning Act created a new planning use class ‘C4’ for HMO properties, which requires landlords to apply for planning permission to change the use from a family home (planning use class C3) to a HMO. The change in the law did not apply to or affect existing HMO properties.
The purpose of the change in legislation was to try and prevent large residential areas becoming overdeveloped with HMO properties and provide local authority control over the concentration of HMO’s in particular areas such as student housing. There was great concern from agents and landlord groups who thought that there may be a shortfall in the availability of rental properties due to the cost of obtaining planning permission and an HMO license from the local authority. Many landlords are unaware that this legislation was introduced and of their new responsibilities, especially with the irony that to turn an HMO back to a family home it would have required a further planning application.
However, with the projected influx of C3 to C4 applications, the Governments Housing Minister has now granted new legislation which comes into effect on 1st October 2010 that could reportedly cut as many as 8,500 planning applications and avoid the flooding of the planning system with minor applications.
This latest legislation means that the definition of the C4 HMO planning use class will remain in force but permitted development rights will allow all changes between the C4 and C3 classes without the need for planning applications.
In areas where there is a need to control HMO development, local authorities can use an Article 4 direction to remove the permitted development rights and require a planning application for such changes of use. The legislation will ensure councils only have to use this power where they know high concentrations of shared homes are a problem.
The Housing Minister said: “Where there are local issues with shared homes, councils will have all the tools they need to deal with the problem – but they will avoid getting bogged down in pointless applications, and landlords won’t be put off renting shared homes where they are needed.”
Anyone looking to rent a property as an HMO should check first with their local authority who will be able to confirm whether a property requires a license under HMO regulations.
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