Houses in Multiple Occupation (HMOs) have become increasingly popular over the years, especially in the UK, where they provide affordable accommodation for many people. However, HMOs are regulated, and as a landlord or property investor, it’s important to understand the rules and regulations surrounding HMO licensing and planning status. In this article, we’ll explore the difference between HMO licensing and planning status, and why it’s important to understand both.
First, let’s define what an HMO is. An HMO is a property that is rented out to three or more tenants who are not part of the same family or household, and who share facilities such as a bathroom or kitchen. HMOs come in various shapes and sizes, ranging from small flats to large houses with multiple rooms. They are popular among students, young professionals, and people on a budget, who are looking for affordable accommodation. We offer leeds sourcing services here at Aventine property.
Now, let’s take a look at the difference between HMO licensing and planning status. HMO licensing is a legal requirement in the UK for certain types of HMOs. If you own or manage an HMO that meets the criteria for licensing, you must obtain a license from your local authority. Failure to do so can result in fines, legal action, and even imprisonment.
In England and Wales, an HMO requires a license if it meets the following criteria:
- It is occupied by five or more people who form two or more households
- It has shared facilities such as a bathroom or kitchen
In Scotland, an HMO requires a license if it meets the following criteria:
- It is occupied by three or more people who form two or more households
- It has shared facilities such as a bathroom or kitchen
The licensing process involves an inspection of the property to ensure that it meets certain safety and amenity standards. The local authority will check things like the condition of the property, fire safety measures, and the suitability of the facilities for the number of occupants. The cost of an HMO license varies depending on the local authority and the size of the property.
Planning status, on the other hand, refers to the classification of a property under the local authority’s planning regulations. In the UK, local authorities use a system of use classes to classify properties according to their intended use. The main use classes are:
- Class C3 – Dwellinghouses
- Class C4 – Houses in Multiple Occupation
- Class C1 – Hotels and boarding houses
Class C3 is the most common use class and includes all types of residential properties, from single-family homes to apartments. Class C4 is specifically for HMOs, and Class C1 is for hotels and boarding houses.
The planning status of a property is important because it determines what types of development and use are permitted in that location. For example, if a property is classified as Class C3, it can be used for residential purposes without the need for planning permission. However, if it is classified as Class C4, it can only be used as an HMO, and any change of use will require planning permission.
It’s worth noting that some local authorities have implemented Article 4 Directions, which remove the permitted development rights for HMOs in certain areas. This means that any change of use from Class C3 to Class C4 will require planning permission, even if the property is not located in a designated HMO licensing area. Difference between HMO licensing and planning read here.
So, why is it important to understand both HMO licensing and planning status? Well, as a landlord or property investor, it’s essential to ensure that your property complies with all the relevant regulations. Failure to obtain an HMO license or comply with planning regulations can result in fines, legal action, and a loss of rental income.