Understanding Use Class C4 for Property Investors: A Guide to Houses in Multiple Occupation (HMOs)
Welcome to our instructional guide designed specifically for property investors interested in the intricate world of Houses in Multiple Occupation (HMOs) under Use Class C4. This guide aims to provide a comprehensive overview of the regulations, permissions, and planning considerations you need to be aware of when investing in or operating HMOs.
What is Use Class C4?
Use Class C4 pertains to small shared houses or HMOs where 3 to 6 individuals, not related to each other, reside as their main or only residence. These individuals share basic amenities like kitchens and bathrooms. A key aspect of a property falling under Class C4 is the existence of shared facilities — essential to avoid reclassification into self-contained units, which would necessitate planning permission.
Interpretation of Class C4:
In legal terms, a dwelling under Class C4 does not encompass converted blocks of flats subject to section 257 of the Housing Act 2004. Instead, it adheres to the definition found in section 254 of the same act, provided it's a shared house with the aforementioned characteristics.
Permitted Development Rights and Legal Precedents:
Class C4 HMOs have permitted development rights, supported by case law, such as the notable London Borough of Brent v Secretary of State for Levelling Up, Housing, and Communities [2022]. This ruling confirmed that small and large HMOs are considered 'dwellinghouses' under general planning definitions, allowing them to benefit from permitted development rights under Part 1 of the General Permitted Development Order (GPDO).
Article 4 Directions and Their Impact:
Local authorities can impose Article 4 directions, which can restrict the rights to convert C3 dwellings (standard residential houses) into C4 HMOs without planning permission. If an Article 4 direction is active in your area, ensuring compliance from the day before it comes into effect is crucial for maintaining legal HMO status. It's recommended to secure a certificate of lawfulness to affirm the legality of the HMO status within Article 4 designated areas.
Planning in Article 4 Areas:
Obtaining planning permission for HMOs in Article 4 areas is still possible but must adhere to specific local criteria, often detailed in the area's local plan. The criteria may include limitations on the percentage of HMOs in a given radius, spacing between HMOs, and impacts on local amenity and character.
Self-contained HMO Rooms:
Transforming HMO rooms into self-contained units requires careful consideration. A recent High Court decision highlighted that while creating self-contained units within an HMO can be permissible, shared facilities must be maintained to avoid reclassification into separate dwellings, which would require full planning permission.
For property investors, understanding the nuances of Use Class C4 and associated regulations is crucial for legal and successful investment in HMO properties. Always ensure compliance with local planning laws, particularly regarding Article 4 directions, and consider the community and infrastructure impacts of your investment.
Remember, every property and local area is different, so thorough research and possibly professional consultation are key steps before proceeding with any HMO development. If you require assistance with planning permission, sign up to our investor list and have a free consultation call with one of our team members.
