Javascript is currently disabled. This site requires Javascript to function correctly. Please enable Javascript in your browser!

Latest

The changes to planning for houses in multiple occupation

 | 
Release Date:
26 March 2010

IMPORTANT: This briefing note is only intended as a general statement of the law and no action should be taken in reliance on it without specific legal advice. Release Date: 26 March 2010

On 6 April 2010 a new Use Class C4 for houses in multiple occupation (“HMO”) will be introduced by the Town and Country Planning (Use Classes) (Amendment) (England) Order 2010 (the “Order”). The new Use Class C4 defines HMOs as use of a dwellinghouse by not more than six residents as an HMO. The Order states that an HMO has the same meaning as in Section 254 of the Housing Act 2004. By way of summary, the Housing Act 2004 defines an HMO as an entire house or flat which is let to three or more tenants who form two groups/households and who share a kitchen, bathroom or toilet. It is important to note that Use Class C4 excludes a converted block of flats even when it would be an HMO under the Housing Act 2004.

At the moment there is no guidance on how the number of occupiers is calculated. One way of establishing the number of residents is by reference to an HMO licence, if one exists. The view of the Planning and Environment Group is that an HMO licence for more than six occupiers would not fall within Use Class C4 even if it has historically been under occupied.
 
To correspond with the introduction of the new Use Class C4, the Town and Country Planning (General Permitted Development) (Amendment) (England) Order 2010 permits, as of the 6 April 2010, the change from Use Class C4 to Use Class C3 (single dwellings) without requiring planning permission. No such permitted development rights are given for HMOs of more than six residents or for converted blocks of flats which would still need planning permission for any material change of use. This is a revolutionary change and one which developers will be keen to take advantage of as HMOs have historically been relatively cheap to purchase but the value of selling these properties on as a single dwelling could be hugely profitable, until the market catches up.
 
For further information, or to discuss a particular situation, please contact either Daniel Farrand telephone: +44 (0)20 7440 4764 or Jade Bale telephone: +44 (0)20 7440 7107.