Manse Capital Limited Financial Planners - Financial Planners, Wealth Managers, Tax Planners

As of April 6th 2010, if an landlord wishes to let out a house or flat to three or more unrelated people such as, nurses sharing, students, young professionals, etc, then new legislation is about to come into force which will have a huge impact on the private rental market. 

One needs to understand this is not legislation that specifically relates to Houses of Multiple Occupamcy (HMO) properties, but could relate to all properties. In short, if you are already own or are newly acquiring a property to rent out that has not previously ‘and is not currently’ rented out to such a group.

Planning permission must now be sought where there is a change of use of a house or flat (which has previously been occupied by a family or related individuals whether it is owner/occupied or rented) to shared use by between three and six unrelated individuals who are not members of the same family/relatives and the property is rented out in the private rented sector.  This can include lettings by owner/occupiers of part of their own homes involving three or more unrelated individuals who are living with them, (lodgers).

If you have previously had 3 or more unrelated tenants in a property but currently rent it out to a family or an individual, you will lose the right to rent it out again to a group of 3 or more unrelated tenants without obtaining prior planning permission. This is likely to cost you circa £335 and you are likely to incur a delay of  two months or more.

Tags: BTL, buy to let, change of use, investment property, new btl rules, Planning Permission, property investment