Creating an HMO in Article 4 Area
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- Опубликовано: 21 авг 2024
- Our latest project is a 6 bedroom HMO in an article 4 area. There's a common misconception that Article 4 means HMOs can't be created, but the reality is they are possible if approached in the right way.
This video goes into the details of how we sourced the project, got planning approved, and our renovation costs.
If you're interested in learning more about HMO investing you can access our free resources at insideproperty...
Thanks very much for clearing this up! As a newbie investor I really had the idea that Article 4 automatically meant you couldn't create a HMO! Such valuable information and I absolutely love your channel! Thanks again :)
Fantastic video, Mike! Love these style of videos covering the projects
Thanks for putting all the info up for free - I watch all the IPI vids 🙌🏼 proper hidden gem on this site
Glad you like them Thiago! Got a lot of fun stuff happening this month as well with free content. Hopefully see you get involved with some of that?
Thanks Mike, inspirational as always. We watch all your vids here in Australia. We can’t HMO here but will be over when covid dies down.. keep up the good work - truely amazing
Amazing! So your plan is to invest in HMOs in the UK?
Great video thank you very much for the information, very helpful. Did you have a plan B? you must have been quite confident this was a good investment seeing as you will have to buy the property first before applying for planning permission. What gave you the confidence things will turn out well?
thx Mike for sharing your knowledge . I 've been watching nearly all the vids in the past 2 days.
Glad you like them! Got a lot of fun stuff happening this month as well. Hopefully see you get involved with some of that?
Also what is the best way to do things, do you find a deal, put in an offer and then seek planning permission or do you find a deal, see if you can get planning before you put in an offer?
Great video Mike, I love the interiors on this project.
Glad you like it - Victoria did a great job with the interiors!
Great advice thanks for this MIke.
Thanks very much for a great video! I have subscribed! :)
I hope you don't mind me asking a few questions.
Under what circumstances would I need to apply for HMO planning permission in an Article 4 Area?
1. Is it simply required for any property that is an HMO, i.e., let to 3 or more unrelated sharers? For example if I bought a 3 bed house and let it to 3 young professionals, would I need to get planning, but conversely would I not need to get it if I let the same property to a family of 3?
2. Is it relevant if the property has not been altered to add more rooms? If I bought a house that had always been a 6 bed property from the time it was constructed, would that negate the need to apply for HMO planning? After all, if the property was designed to house 6 people, surely it isn't relevant who those 6 people are if the building has not being altered?
3. Does the type of rental agreement issued to the tenants have any bearing on the requirement for HMO planning? My intention would be to let any HMO property as a whole, to young professionals, on a single joint AST, rather than room by room.
Thanks in advance for any advice!
Cheers!
Hey, all good questions but I don't think you'll like the answers
1) Yes, if an article 4 directive applies to the area you buy a property in, and specifically restricts the change of use from C3 to C4 (single residential dwelling to small HMO - not all A4 directives are related to HMOs) then you'll need to apply for planning permission for the change of use to rent to 3 young professionals.
2) No, it's not relevant unfortunately.
3) Again, not relevant. The test is whether 3 or more people form 2 or more households. 6 people living as one family is a single dwelling, but 6 individuals living together is an HMO, regardless of whether they're on a single AST or individuals. It's worth noting you'll have a hard time getting 6 tenants who don't know each other to sign a tenancy agreement with joint and several liability. We always use one tenancy per tenant.
You can understand more about planning requirements etc for HMOs here - www.insidepropertyinvesting.com/hmo-investing-uk/
@@InsidePropertyInvesting Thanks very much for the answer, much appreciated! Your website is very useful too and is exactly inline with my way of thinking, even down to the numbers. When I was a little younger I really enjoyed living in HMOs, so I think this will help me provide a high quality product.
Just one other question if that's ok, am I correct in assuming that if an HMO is not in an Article 4 area, you do not need to apply to planning for a change of use from C3 to C4, as it would be automatically allowed under permitted development? Or is a planning submission still required as a formality?
Cheers!
Great video interesting insight, I am intrigued with article 4 across Stockport and Ashton under lyne. All seems uncertain no exact maps like Trafford and Manchester council have. Any advice would be very much appreciated!!
Thanks for the video!
Was wondering, when you bought this and were In the planning and renovation process, was the property financed via bridging?
1000th view :)