There’s often confusion regarding the distinctions between HMO licensing and the regulations surrounding Article 4, especially in Leeds. This guide clarifies these differences and sheds light on the implications of both for landlords and property investors in Leeds.
HMO Licensing vs. Article 4 – What’s the Difference?
An HMO licence pertains to ensuring that a property meets specific health and safety criteria for its occupants. Just because a property holds an HMO licence in Leeds doesn’t automatically grant permission to rent it out as an HMO.
Conversely, Article 4 revolves around preserving the character of an area. It primarily restricts the conversion of multiple standard houses into HMOs in designated areas. Holding the right to rent a property as an HMO in an Article 4 zone doesn’t negate the need for an HMO licence.
While the local authority’s HMO Team manages HMO licensing, the Planning Department oversees the C4 HMO status.
When is an HMO Licence Needed in Leeds?
Mandatory HMO licensing is essential when:
- A property is rented to five or more tenants from two different households sharing amenities like a kitchen or bathroom.
- The tenants have either shared tenancy agreements, such as student lets, or they have individual room shares/bedsits.
Renting an HMO in an Article 4 Area in Leeds – What to Know?
In Leeds, if you aim to rent a property as an HMO in an Article 4 region, you need to provide a continuous tenancy history, evidencing HMO usage since Article 4 was implemented – this dates back to February 2012.
HMOs in Leeds are often occupied by students or young working professionals. They offer attractive revenue streams for landlords as rents are typically per room, often yielding higher returns than family rentals. This attractiveness can sometimes impact family housing availability, hence local authorities often restrict the number of houses being converted into HMOs through Article 4.
Remember:
- In Leeds, an HMO licence is necessary for properties housing five or more people from different households, irrespective of their location in an Article 4 area.
- If in an Article 4 area, continuous evidence of C4 HMO usage since its introduction is essential.
In the changing landscape of Leeds property regulations, understanding HMO and Article 4 differences is paramount for making informed decisions. Whether you’re a seasoned landlord or a new property investor, Let’s navigate the complexities together, ensuring your properties not only comply but thrive in Leeds’s vibrant rental market!
