Landlords warned of to take note of HMO licensing changes
Buy-to-let investors have been urged to check with their residential lettings agents and local authorities to make sure they do not fall victim to new rules governing Houses in Multiple Occupation (HMOs).
The Association of Residential Lettings Agents (ARLA) has warned that a number of local authorities plan to enact an optional piece of housing law legislation- called Article 4 - which will mean planning permission will be required if a property is being changed from a dwelling house (Class C3) to a 'small HMO' (Class C4).
The new C4 class of property was introduced in April 2010 and covers any rental home with three to six unrelated tenants, who share common facilities such as a bathroom or kitchen.
Previously, HMO licenses only applied to homes with six or more unrelated tenants living in one property with shared amenities over three levels.
ARLA said the new legislation is more likely to be enforced in areas with a high density of smaller and larger HMO properties such as city centres and student communities.
Ian Potter, operations manager at the organisation, said: "HMO licensing and planning applications are not a new issue for landlords, but now there is the added complication of Article 4. There is no room for complacency - failure to comply could result in a hefty fine."
ARLA advised landlords to check with agents and local authorities to find out whether or not they will need a licence to convert a property into an HMO.
"It is therefore important for any landlord considering changing the use of a property to fully research the regulations in their area. For landlords with portfolios spanning more than one local authority area, this may mean different rules apply for each property. Factoring in the possible additional costs of purchasing the licence is also vital," added Mr Potter.
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