For new or even seasoned landlords, buying a property to rent out to more than one tenant is very appealing. With more and more people seeing the benefits of house shares, too – especially in in-demand areas where rent is higher – looking for this sort of opportunity is a must-do.
However, there’s something called Article 4 HMO that opportunists must be aware of. Article 4 is essential to understand if you want to make the right choice with a property purchase and an HMO investment.
We’re here to provide your guide to understanding Article 4 HMO.
This outlines that a local authority could require a property owner to first seek permission before allowing multiple tenants to live in a house share. This means that the local authority has better control over the amount of this type of property in that particular area, This also allows them to assess what the impact might be on any particular area
Of course, this means that you might not be able to convert your property based on Article 4 and the deliberation of the local authority.
For example, if you are applying for an HMO in an area or street that already has a great number of this type of property, then under Article 4 HMO this may not be deemed suitable for your property.
This legislation stipulation only applies to smaller properties, however. If you have a larger property and a larger multiple occupation plan, this would fall under a different house class and require different permissions.
It’s entirely understandable why local authorities would want to limit or control the amount of HMOs in one area if they’re trying to protect local heritage areas or ensure a more feasible market and community. Article 4, therefore, better protects heritage areas and ensures a less crowded community or market.
Nevertheless, this could be an issue for student housing. An HMO opportunity is extremely appealing for students in particular, or even simply young people who can’t afford to rent by themselves. Article 4, therefore, compromises the opportunity to let for those young people who may need that extra support through house sharing.
The logic behind this is that local authorities may deem too many student houses and house shares as disruptive. There is the assumption of students in a house share being noisy or throwing parties, for example.
With this in mind, this may waylay the opportunity for landlords wanting to rent out to multiple occupants who aren’t students. If the reasoning behind denying too many properties under Article 4 is to deter too many students in a student-living area, this could also mean that regular tenants aren’t able to find HMO situations either.
The professional team at Yuno is here to support you as a landlord looking to broaden your investment portfolio and look into HMO opportunities. Our software makes it easier for you to manage your properties, including HMO – and now that you understand what Article 4 is all about, you can do so more confidently.
Effortlessly stay on top of property legislation with a digital compliance report for every property in the UK. Yuno offers an all-in-one solution for seamless digital audits, real-time updates, and a wealth of property compliance knowledge, transforming compliance from a daunting obligation into a strategic advantage.
With over 15 years immersed in the property sector, Paul’s expertise is unparalleled. From his beginnings as a developer in Chelsea to pioneering the innovative Yuno property compliance model, his journey showcases a deep understanding of the industry’s intricacies.
Having been a slave to the beast of responsibility & liability, Paul decided to partner with property legal professionals & experts to create a platform that would empower all with the knowledge and means to set themselves free once and for all. With Yuno, you’re not just complying; you’re thriving.
With his Chartered Accountant background and extensive experience in corporate finance, private equity, and real estate, Steve plays a pivotal role as our Financial Director and Advisor. His financial acumen is invaluable in shaping Yuno’s financial strategies and ensuring sound financial governance.
With over 25 years of experience, Steve’s insights and guidance are instrumental in driving Yuno’s financial success.
With over 15 years of professional experience spanning diverse sectors, from law enforcement to fintech, Russell brings a wealth of knowledge to our team.
In 2016, Russell’s entrepreneurial spirit led him to raise an impressive $8 million for the establishment of Paymenta, a cutting-edge platform specializing in foreign exchange and remittances.
Russell is a proud graduate of Oxford, where he earned his PGDip in Software and System Security. His expertise and passion for technology make him an invaluable asset to Yuno, ensuring our platform remains at the forefront of innovation.
Lori brings over two decades of expertise in estate agency and the private rental sector to the Yuno team.
As a valued advisor, Lori plays a crucial role in shaping Yuno’s compliance solutions, ensuring they meet the needs of our clients in an ever-evolving industry. Her wealth of knowledge and commitment to excellence make her an integral part of our mission to simplify compliance in property management.
David’s legal prowess in property litigation, property regulation, and data protection is unparalleled. His extensive experience, especially in matters concerning residential tenancies and agencies, makes him an invaluable asset to Yuno.
With a keen eye for new legislation and obligations, David excels in advising and litigating complex property issues. He has a knack for finding innovative solutions within existing laws to tackle unique client challenges.
With a proven track record of nurturing businesses and an in-depth understanding of consumer behaviour in relation to property, Kate is a true industry figure. Her insights and expertise are invaluable to Yuno’s mission.
Kate’s dedication to improving the property industry aligns perfectly with our goals, and her guidance helps us continually evolve to meet the needs of property professionals and consumers alike.
