Houses of Multiple Occupation are bound by some legal regulations across the UK, which can vary depending on area so it is important to research what these regulations are for your own investment area. This document is to help you understand what the difference are between licensing and planning regulations as they are not linked, and are two separate regulations that need to be understood BEFORE you invest in any HMO project.
HMO Licensing
Mandatory Licensing
This is a licensing scheme that applies nationwide and is aimed at larger HMOs, where there are five or more tenants/occupants from two or more households.
Additional Licensing
Subject to local consultations, Local Councils can impose additional HMO schemes. This applies to smaller HMOs, where the number of storeys is irrelevant and the property is occupied by three or more tenants/occupants from two or more households.
Selective Licensing
At the discretion of the Local Council, specific properties, or areas, roads or simply properties with a minimum number of occupants may require a licence.
CHECK THE LICENSING REGULATIONS FOR YOUR INVESTMENT AREA!!
Licenses need to be applied for by the owner/landlord before any rooms are rented out. It is the council’s Environment Health Department that issues a license. They are chargeable, again this cost varies depending on your investment area council.
HMO Planning Regulations and Article 4
When considering HMOs, there are three main property classes to be aware of:
- Class C3: Dwelling House
- Class C4: Small HMO – 3-6 residents
- Large HMOs (Sui-Generis) – more than 6 residents
Do you need Planning Permission for Change of use to a Class C4 Property?
If you’re looking to change a residential property for rental to multiple tenants sharing a facility or facilities, you may need to apply for HMO planning permission. However, this only generally applies if your council has introduced Article 4 Directions, removing the permitted development rights which allow a C3 (Dwelling House) property to be changed to a C4 (HMO) without planning permission, subject to conditions. Obtaining a change of use from a C3 to C4 property in one of these areas does therefore require a planning fee payable to the relevant Council.
Sometimes applications to change the use of a property to a HMO are not straightforward applications as Article 4 Directions are generally put in place to ensure that there is a balance in housing stock and too many HMO’s in an area
If you are not investing in an article 4 area, planning permission will generally not be required, however you may still need to apply for Building Regulations Approval, which will involve your property being assessed to ensure it meets the correct fire safety standards.
What About Changing From C3 to a Large HMO?
If you plan to change your property from Class C3 to a Large HMO housing more than 6 residents, you will need to seek planning permission as there are no permitted development rights for change of use from C3 to Sui-Generis HMO.
ALWAYS CHECK WITH YOUR INVESTMENT AREA LOCAL COUNCIL PLANNING DEPARTMENT
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