Buy to let landlords and potential property investors take note – we have received information from local sources that BANES intends to enact a Direction (Art 4/HMO/01) under Article 4(1) of the Town and Country Planning (General Permitted Development) Order 1995.
The Direction relates to development involving a change of use from a dwelling house (class C3) to a house in multiple occupation where between three and six unrelated people share a kitchen and/or a bathroom (class C4). It will remove permitted development rights across the city for this type of development from the date when it comes into force (we hear this is likely to be before Christmas 2011).
This means that, in a short time from now, planning permission may well be required for a change of use from class C3 to class C4.
Please also note the Direction is likely to apply to the entire city, not just to areas like Oldfield Park.
So, what is this likely to mean to the housing market in Bath? Well, for starters, anyone looking to buy to let to students/sharers from 2012 onwards might need to be prioritising buying an existing let (as any Article 4 ruling does not apply to current HMO’s). We don’t yet know what conditions BANES will put on granting planning permission for C3/C4 class change but it’s likely to involve the existing percentage of HMO property on any particular road (in other words, if there are already X% of houses in the road as HMO’s, the answer to any new applications would be a flat no). For residential buyers, the ruling is much better news as it will remove the vast majority of investment competition from the arena. At present, we have a few ideas of the potential impact on house prices and await further developments with interest.
Comment added 12/09/11 – one of our investor clients has just brought up a very interesting point – “BANES will have a very clear idea of density and landlords through their details on student rate relief but will a buyer be able to know in advance of making an offer on a owner occupied house what the density is for that particular road as to whether planning permission will be granted for HMO occupation?”
Comment added 29/9/11 – we have been told that a workshop event is being held by BANES Planning Dept in late October. The stated aim of the workshop is “undertaking a study to help us to understand the impacts of Houses in Multiple Occupation (HMOs) on local communities in Bath and to explore the opportunities for planning interventions (including a possible Article 4 Direction) to help manage these impacts.”
The project summary we have been provided with gives the following information;
“In June 2011 the BANES Cabinet agreed to allocate funding to consider how planning controls (including an Article 4 Direction) could be used to control the spread and increase in Houses in Multiple Occupation (HMOs) in Bath. HMO concentration and the impacts of concentrated activity particular concern for the wards of Widcombe, Oldfield Park and Westmoreland which have a higher % of Houses in Multiple Occupation occupied by students, but there are other wards across the City, which may also be affected.
The Planning Department was instructed to progress a feasibility study to consider the potential for and scope of an Article 4 Direction and has subsequently appointed consultants Arup to support the planning department in making a recommendation to Cabinet.
An Article 4 Direction would mean that express planning permission would be required for a material change of use, although BANES will not be able to collect fees for processing the processing of these applications. Reasons for refusal of planning permission will still be required on a case by case basis. The study will consider the introduction permitted development rights for change of use from a dwelling house (Use Class C3) to a small HMO (Use Class C4), and define its geographical coverage.”
Directors from Madison Oakley will be attending the workshop
PLEASE NOTE – OUR UPDATE IS NOW LIVE ON OUR BLOG (27/12/2011). Use sidebar tag cloud to find via “HMO” or “Student housing”.
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