April this year saw the introduction of a controversial piece of legislation that means planning permission is required if a house is to be rented by three or more unrelated individuals. Rob Cooke explains what this means for the lettings sector and how it will affect landlords...
 
Do I need planning permission to convert my property to a house in multiple occupation?

Since statutory instrument 653 came into effect in April, landlords are required to gain planning permission if they wish to let out a house in multiple occupation (HMO). 

The Town and Country Planning Act has created a new planning class for HMOs – C4. This means landlords must apply for permission if they wish to change a property that is currently let as a family home into a shared house.

The legislation is not retrospective and will not affect properties already in use. Therefore, HMOs that currently house three or more tenants will not have to apply for permission because they have already “established” use from the date the new laws were enforced.

The aim of this legislation is to prevent so-called ‘studentification’ of areas, whereby rows of terraced houses in university towns and cities are rented to students. It was passed by the old Labour government who believed this was a problem, although the new coalition may have different views.

As part of his election manifesto, David Cameron indicated that it would be the Conservatives’ intention to rescind and repeal this new law. Whilst at present it is still in place and landlords should be aware of its affects, we need to keep a close eye on it, as the rules could be amended again in the near future.

How will the new law affect landlords?

Landlords are required to obtain planning permission if there is a “material change in use” to a property. This means that since April 6 this year, approval is needed if you intend to let a family home, classed as an “existing C3 dwelling house which does not require planning permission” to three or more unrelated people who will share the amenities.

You also need to be aware that if you apply for planning permission to turn your house into a HMO and then re-let the property to a family, the existing permission will be regarded as lapsing and you will need to apply for approval again if you subsequently change the use back to a HMO. 

How can I prove my property was let as a shared house before April 6?

As I mentioned earlier, the legislation is not retrospective. Landlords already letting their property to unrelated sharers when it was introduced have an established right to continue in this manner, even if new tenants moved in after April 6.

The onus will be on you to prove that the property was being operated as a shared house, not for the Local Authority to show that it wasn’t. I strongly advise landlords to keep as much evidence as possible so that you can demonstrate HMO usage. This may include tenancy agreements, rent statements, tenancy deposit certificates, copies of adverts placed when looking for new tenants and any other documentation showing tenants living at the address. It is especially important to demonstrate occupation if a fixed term tenancy has become a periodic tenancy.

How will these new rules be enforced?

Planning law in England is administered and enforced by the local authority in the area your property is based.
  
Until the government repeals this legislation, it is important that landlords are aware of the changes that have been made to the planning laws, to avoid potential investigations and possible fines from local authorities. The new government clearly has a great deal of important work ahead of it and I am unsure how the new coalition policies will alter the direction and manifesto of the Conservative party. Only time will tell if this legislation will be reversed and how long it will take.

For further information about applying for planning permission to change your rented property to a HMO, contact your solicitor. Alternatively, you can call me on the details below.

• Rob Cooke is a partner specialising in commercial litigation with Sheffield solicitors, Taylor&Emmet LLP. Telephone 0114 218 4000.