Download - RB talk 13th June
Some Myths about HMO Legislation
• Myth #1: Article 4 Direction developed for HMOs: NOT TRUE
• Myth #2: Article 4 means no NEW HMOs: NOT TRUE
• Myth #3: All HMOs need a license: NOT TRUE
• Myth #4: Only larger HMOs need a license: NOT TRUE
• Legislation– Article 4 Direction– Licence to Operate
What is an Article 4 Direction (A4D)• A landlord has the right to convert a
family dwelling to an HMO within their General Permitted Development Rights
• An A4D removes the General Permitted Development RightPlanning permission required from local
council: may be refusedRemember: Aim of an A4D is to stop new HMOs
HMO Licencing - overviewHousing Act 2004
HMO Licencing (2006)
Mandatory(Eng/Wales)
• 5 or more people AND• 3 storey's or more AND• >2 households
Discretionary(Council-led)
Additional Selective
• All HMOs • All Rental Properties
HMOs: Article 4 versus Licensing
Article 4 (planning) & Licensing are entirely different bits of legislation, dealt by different
council departments
Article 4 = Licencing
You may need planning but not a licence or vica versa, both or neither – check with your council
R2R scenarios in Article 4 area
R2R an existing HMO Rent out as HMO NO
Planning Permission required ?
R2R an existing HMO Re-Let as HMO NO
Control of single let property Rent out as HMO YES
R2R an existing HMO Re-Let as HMO YESRent to2 people or family
empty
Evaluate local planning regulations carefully!!
2015 Hypothetical Example: Nottingham (Article 4 since March 2012)
• Q1: Do you need planning permission to change use?• A: YES: Article 4 in place, & council may refuse• Q2: Do you need a Licence to run the HMO• A: YES – mandatory and addn licencing in place
– WARNING: Licencing is on the increase
3-6 bed family home or single-let houseChange to a 3-6 bed HMO
Case Study: Gadd Street, Nottingham (December 2013)
• Q1: Do you need planning permission to run this as a R2R HMO?
• A: NO: its already an HMO• Q2: Do you need a licence to run the HMO• A: YES, Mandatory Licence
You want to R2R this 6-bed, 3 storey HMO, previously let to students
Investment Decision TreePurchase or R2R
Is it already an HMO**
** Seek evidence
Is Article 4 in place?
NO
Speak to local council
YES
Confirm Licencing rules
& proceed
NO
YES
Confirm Licencing rules
& proceed
** Article 4 not relevant