Fleet Mortgages has unveiled a comprehensive new guide designed to help property professionals navigate the complex and often misunderstood regulatory framework surrounding Houses in Multiple Occupation (HMOs).
The guide, titled A Guide to HMOs: Licensing, Planning & Article 4, is now available for download via Fleet’s website.
It comes at a time of heightened interest in HMO investments, driven by their potential to deliver stronger rental yields and greater income resilience compared to traditional buy-to-let properties.
With HMO regulation varying significantly across local authorities, Fleet’s guide sets out to provide clarity for landlords.
SELECTIVE LICENSING
It demystifies key areas such as the distinctions between small and large HMOs, and the types of licensing schemes in place – including Mandatory, Additional, and Selective Licensing.
It also covers the nuances of planning use classes, explaining the differences between C3 (single households), C4 (small HMOs), and Sui Generis (larger HMOs), and outlines when planning permission is required for change of use – a frequent stumbling block for investors expanding into the HMO market.
Crucially, the guide explores the growing impact of Article 4 Directions – a tool increasingly used by local councils to restrict permitted development rights in areas where HMOs are considered to be in oversupply.
For estate agents and advisers supporting portfolio landlords, understanding the implications of these local designations is essential.
PROFESSIONAL CONFIDENCE
Steve Cox, Chief Commercial Officer at Fleet Mortgages, says that the guide was developed in response to a surge in demand from intermediaries seeking clear, practical advice on HMO regulations.
He adds: “HMOs continue to appeal to professional landlords looking to maximise returns, but the regulatory landscape is significantly more complex than for standard buy-to-let.
“Our aim is to simplify the legal and planning challenges that come with HMO investment, enabling advisers to guide their clients with greater confidence.”
The publication includes real-world case studies, illustrative planning scenarios and tips for conducting due diligence in Article 4 areas – making it a valuable resource for both new entrants and seasoned professionals in the HMO space.
