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Planning Application for HMOs 6 April 2010
phlash
Posts: 883 Forumite
This is quite techy, so apologies.
On 27th January the Communities and Local Government released this:
http://www.communities.gov.uk/documents/planningandbuilding/pdf/housesmultipleresponses.pdf
Better summarised in this article:
http://blog.painsmith.co.uk/2010/01/29/new-announcements-on-hmos/
Implications:
Current Landlords with HMO
In brief, if you own a house which you rent to 3 or more unrelated people who share a kitchen/bathroom/toilet then from the 6 April 2010 your house will change from a C3 (Dwelling) category to a C4 (HMO) category. Nice and easy.
What if you don't currently rent as an HMO, but after 6 April 2010 you decide to?
Well, you need to apply for planning permission to change from C3 to C4.
What if you have decided to rent as an HMO post 6 April 2010, and you have signed an AST with tenants in preparation?
Well, this is tricky, and I would be interested to hear if anyone has come across anything. My local council has said that the property would still need planning permission in this instance, since it was not occupied prior to 6 April 2010.
The tricky situation is, a Landlord is promising to let his property on an AST, which cannot be guaranteed as they do not necessarily have planning permission! This is particularly relevant to the student lettings market, which sign contracts in Jan/Feb ready for July.
Thoughts?
HMO - House of multiple occupancy
AST - Assured Shorthold Tenancy
On 27th January the Communities and Local Government released this:
http://www.communities.gov.uk/documents/planningandbuilding/pdf/housesmultipleresponses.pdf
Better summarised in this article:
http://blog.painsmith.co.uk/2010/01/29/new-announcements-on-hmos/
Implications:
Current Landlords with HMO
In brief, if you own a house which you rent to 3 or more unrelated people who share a kitchen/bathroom/toilet then from the 6 April 2010 your house will change from a C3 (Dwelling) category to a C4 (HMO) category. Nice and easy.
What if you don't currently rent as an HMO, but after 6 April 2010 you decide to?
Well, you need to apply for planning permission to change from C3 to C4.
What if you have decided to rent as an HMO post 6 April 2010, and you have signed an AST with tenants in preparation?
Well, this is tricky, and I would be interested to hear if anyone has come across anything. My local council has said that the property would still need planning permission in this instance, since it was not occupied prior to 6 April 2010.
The tricky situation is, a Landlord is promising to let his property on an AST, which cannot be guaranteed as they do not necessarily have planning permission! This is particularly relevant to the student lettings market, which sign contracts in Jan/Feb ready for July.
Thoughts?
HMO - House of multiple occupancy
AST - Assured Shorthold Tenancy
I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)
That also means I cannot share in any profits from any decisions made!;)
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Comments
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This is a tricky one and I have afeeling the council may be right.
A contract can be signed at any point but is not usually deemed to be executed until occupation has occured.0 -
It is worrying especially for people who bought a house and are developing as an HMO. They may complete renovations post 6 April 2010, then find that they are refused planning permission.
Considering how long builds/renovations can take, they may have purchased before 27 January when this was announced, at which point they believed everything was fine and dandy.
Result could be - an HMO designed house, with no one to let it to because planning is refused. This could wipe out a few small developers / Landlords yet their decision to make an HMO was well in advance of any legislative notice. If they are forced to sell as a residential - who wants it? It's designed as an HMO!
Meanwhile, poorly maintained properties get the C4 automatically. Its not exactly a legislation to ensure that letting conditions are improved!I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
It is worrying especially for people who bought a house and are developing as an HMO. They may complete renovations post 6 April 2010, then find that they are refused planning permission.
Considering how long builds/renovations can take, they may have purchased before 27 January when this was announced, at which point they believed everything was fine and dandy.
Result could be - an HMO designed house, with no one to let it to because planning is refused. This could wipe out a few small developers / Landlords yet their decision to make an HMO was well in advance of any legislative notice. If they are forced to sell as a residential - who wants it? It's designed as an HMO!
Meanwhile, poorly maintained properties get the C4 automatically. Its not exactly a legislation to ensure that letting conditions are improved!
This is exactly what is going to happen to me. I can't seem to get much help from anyone in the council.
It's actually for three properties in a row that were totally deralict. There is no way that they'll be finished until the end of the summer, in time for students in September. If I don't get the HMO licence I'll lose between £300-£500 per property per month. I really can't afford this. I'll have to sell them all.
What am I to do? How easy is it going to be to get planning permission? Where on earth do they expect the students to go? It's unbelievably narrow minded. Any help anyone can give would be very much appreciated.0 -
Reading through the Painsmith Blog, am I right in saing that it only applies to Licenseable HMO's that will require planning consent?
Or, will it now open the flood gates for any property, regardless of how many floors they have that are used, by three people or more that do not form a household, now need planning consent?2012 Target...
10 half marathons in a year. First one, New Years day!0 -
Its for any HMO, with three or more uinrelated parties sharing a bathroom / toilet / kitchen.
HMO licences are still 3 storey etc....
Unfortunately this new planning permission applies to all HMO's not just the licenable ones.
Cameleer, I am in the same position. If I hear anything I will update this thread, and try to remember to PM you.
What annoys me, is those LL who own damp rotten HMO's will automatically get the C4 category, and those built new may well never get the C4 category and could be left stuck.I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
Another way to increase revenue for the council.
I cannot see how this will work.
How long will the application process take? Knowing the council quite a while.
So you could market a property to tenants, but if three individuals rent it, you will find yourself trying to apply for planning consent?2012 Target...
10 half marathons in a year. First one, New Years day!0 -
Lstclair55 wrote: »Another way to increase revenue for the council.
I cannot see how this will work.
How long will the application process take? Knowing the council quite a while.
So you could market a property to tenants, but if three individuals rent it, you will find yourself trying to apply for planning consent?
Correct.
So, take the student market. They sign AST contracts in January to commence their 12 months accommodation typically on 1 July. So the LL must now apply for planning consent (if it wasnt an HMO at 5/6 April 2010), which the council could refuse......
What happens to the tenants? How does the LL fulfill the AST contract if the council refuses HMO (C4) category?
There will be hundreds in this situation, implentation of this legislation could get very interesting.I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
Do we know how much councils are going to charge for this?2012 Target...
10 half marathons in a year. First one, New Years day!0 -
That isn't the worry, who cares about a one off couple of hundred quid.
It's the fact that the rent wouldn't come in!I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0 -
Sunday readers....thoughts?I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0
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