In a previous article, we outlined how those looking to raise their income can start a House in Multiple Occupation (HMO) to do so.
But one angle we didn’t cover was the process involved in converting a residential home to an HMO, and the planning permission you need.
So, in this article, Commercial Property expert, Patsy Whitford, discusses exactly that.
What is an HMO?
An HMO is defined by the Government as a property that is rented out by at least 3 tenants who are not from the same household but share ‘facilities’ such as the bathroom and kitchen.
A property with less than 5 tenants is called an HMO, whereas one with more than 5 tenants in occupation is known as a ‘large HMO’.
Both standard and large HMOs have different regulations and licencing requirements, and, in this article, I have set out the different requirements for each and how the conversion process differs.
How do I convert my house to an HMO?
The process for converting a house into an HMO varies depending on the location of the property and the number of bedrooms that you plan on renting out.
For a large HMO you will need to obtain planning permission from your local council in the usual way whereas, generally, for small HMOs, planning permission is not required, and conversion falls under permitted development rights.
Permitted development rights make the process of converting a house to an HMO easier and mean that you do not need to go through the process of obtaining full planning permission, although you will probably still need consent from the local planning authority.
To find out if your property has the necessary permitted development rights to convert to an HMO it is best to contact your local council.
Can any house be converted to an HMO?
Providing that the house being converted meets HMO standards and the relevant permission is obtained, then yes it can be converted.
In terms of criteria, you need to have
- A valid gas safety certificate,
- safety certificates for any electrical appliances, and
- Smoke alarms and carbon monoxide detectors installed.
The rooms that are being rented out must also meet the HMO minimum room sizes which are:
- A bedroom occupied by children under the age of 10 – 4.64 M2
- A bedroom occupied with one adult - 6.51 M2
- A bedroom occupied by two adults – 10.22 M2
What is C3 and C4 planning permission?
C3 and C4 are two different types of planning permission.
C3 planning permission is required for a residential dwelling such as a family home, or for a single household.
C4 planning permission is needed for houses being used as HMOs where six or less unrelated tenants live together and share facilities.
Do I need planning permission to convert a house into an HMO?
For small HMOs, generally no, as this can be done under permitted development rights, but there are exceptions to this.
Permitted development rights allow the property use to be changed from a residential house (under C3 as above) to an HMO (C4 as above) without the need for obtaining formal planning permission.
A fee will be payable to your Local Council to do this, but you are not required to complete a full planning application.
Some local councils are implementing Article 4 Directions, which prevents the conversion of properties from a residential dwelling (Class C3) to an HMO (Class C4) without planning permission. Therefore, it is important to check with your local council to see if your property is within an Article 4 Area.
Converting a house into a large HMO will always require planning permission in the normal way.
Does an HMO have permitted development rights?
Yes, some HMOs benefit from the same permitted development rights as a ‘normal’ residential home.
These rights allow the owner to improve and extend the property (subject to certain restrictions) without the need to obtain planning permission.
This includes alterations and installations such as certain extensions, dormer windows and outbuildings.
What else do I need to do to turn a house into an HMO?
HMOs generally require a licence from your local council. This licence will usually last for 5 years and is personal to you. Therefore, if you sell the property, the buyer will need to obtain a new licence as it cannot be transferred.
Although not all HMOs need licences, the council have discretion to decide whether any other licencing scheme is required and so it is important to contact your local council directly for guidance.
You may also be required to obtain a certificate of lawfulness from your local council.
HMO advice solicitors
At Frettens, our bright Property Team would be happy to assist you in purchasing an HMO or single dwelling.
As well as assisting you throughout the process of converting a home into an HMO.
The team could also assist you in the creation of a legally binding tenancy agreement that meets the legal standards.
We offer a free initial chat for all new clients, where we can iron out the details, so please don’t hesitate to get in touch on 01202 499255 or by filling out the form at the top of this page.
We have also put together a comprehensive residential landlords’ guide, which includes everything you need to know from becoming a landlord, your responsibilities and the costs; to dealing with tenant issues and eviction. Download your FREE copy here.
Comments