Charnwood have published (11/2/11)for consultation a Direction under Article 4 of the Town and Country Planning Order 1995.
It’s purpose is to require that changes of use to a House in Multiple Occupation (HMO) for dwellings in Loughborough will from 12 Feb 2012 require the grant of planning permission. This would change the house’s class from C3 (dwelling house) to C4 (HMO).
What is an HMO and how does it affect Loughborough landlords? A house is classified as an HMO if it has 3 or more unrelated occupiers in it. So a brother and sister plus a friend is 3 people but not an HMO as there are not more than 3 unrelated people at the house. A tenancy with 3 unrelated friends = HMO (student lets fall into this category usually). This has been the case for some time but from 12 Feb 2012 any house that falls into this classification will require planning permission beforehand. Our understanding is that this will affect houses that are currently not HMO’s but wish to become HMO’s and houses that are already HMO’s won’t require this planning permission. Houses with 3 or more stories and 5 or more applicants have been subject to further regulation (Licencing) for some time.
This Direction has big implications for the landlord which may include making changes to their property. Landlords who seek and get permission (or even unintentionally set up an HMO and then are forced to seek planning consent) and change their houses to C4 (HMO) should be aware that they may then need to apply for planning permission to change it back to C3 at a later date and this may affect their disposal of it. If you want further information there is a wealth on the internet and you could also contact Charnwood. If you wish to make a representation on this Direction it should be by email to localplans@charwood.gov.uk or by post to: Article 4 Direction Consultation, Planning Policy Team, Charnwood Borough Council, Southfield Road, Loughborough, LE11 2TN; representations must be made by 5pm on Friday 4th March 2011.
At Belvoir Loughborough we have avoided setting up multiple tenancies that create HMO’s for a long time because of the potential extra regulation that landlords may not have planned for (Charnwood have had the power to reclassify a house as an HMO for sometime on a case by case basis; this Direction is formalising it to apply automatically to every new HMO). If you want further advice please ask to speak to Jim Mitchell. We offer a wide range of lettings services but please note we do not take on any new student houses now.