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Grimsby landlords urged to seek legal advice as proposed changes could limit HMO conversions
Landlords and investors with property portfolios in Grimsby are advised to seek legal advice as a petition to limit the number of HMOs in the area has been well supported by councillors and local residents.
The petition, which seeks to implement tougher regulations for Houses of Multiple Occupancy in the area, would require all homeowners to obtain planning permission before converting a property into an HMO.
Under the current rules, planning permission it is not always necessary as this can be allowed under Permitted Development Rules. However, the petition, which has over 400 signatures from local residents, could severely limit this.
The petition seeks to implement ‘selective licensing’ and strictly covers the East Marsh constituency, with a particular focus on Wellington Street, but could have a more widespread impacts for investors.
The council is clear that the changes are not intended to vilify landlords but to ensure that HMOs that contain “unsafe living conditions” are not created. By forcing homeowners to seek express approval from the council through planning permission before conversion, this will ensure only suitable properties are approved.
However, many landlords and homeowners may not understand what constitutes a ‘suitable’ property. Indeed, there may be some that do not commit to planned renovations if the proposed legislative changes come into force - which could be a significant loss of income for the area.
Under Article 4 of the Town and Country Planning (General Permitted Development) (England) Order 2015, to meet the criteria for a lawful HMO, properties must have a licence if:
Five or more tenants will reside on the property
Some or all tenants share a bathroom/washing facility
Of course, every property is different, so the layout of some premises may exclude them from being used as an HMO due to safety concerns, such as limited fire exits or poor accessibility.
This is why it’s critical that landlords and homeowners seek expert legal counsel from a solicitor well-versed in property law and conveyancing - to avoid incurring any losses, costs or damages - as well as potentially breaching the conditions of a Buy to Let mortgage.
While the proposed changes are not yet in force, it is vital that local landlords monitor the situation closely to avoid undertaking any projects that could be adversely affected by the petition should it become law.
While the selective licensing requirement, once in place, cannot be applied retrospectively, breaches can be enforced by law. For this reason, it is advised that those who have recently converted HMOs in the area should check to ensure the relevant permissions were sought to ensure compliance - and prevent a perceived hazard to current or would-be tenants and avoid incurring fines for breaching planning conditions.
If you or someone you know is a landlord with properties in the area that are or may become HMOs or who has property concerns, get in touch with our expert team of property solicitors today to limit your liability and ensure the safety of your tenants and the wider community.