The Association of Residential Letting Agents (ARLA) said landlords could not afford to be complacent about HMO regulations, particularly if they are looking to alter their properties to house more people or extend their portfolio.
It warned that “many” local authorities have indicated to it that they will now enforce a piece of legislation known as Article 4, making planning permission a requirement for any property changed from a dwelling house (Class C3) to a small HMO (Class C4).
This means that any property with three to six tenants sharing common facilities must be covered by a HMO licence, whereas before it only applied to homes with six or more tenants with shared amenities over three levels.
The cost of a HMO licence can be around £400 to £600, ARLA said, and landlords must also take into account the costs of gaining any associated planning consent.
While the rule change was introduced in April 2010, it is optional for local authorities to implement it.
However, ARLA said local authorities are increasingly likely to enforce the rule, particularly in areas with a high density of HMOs, such as city centres or where a large number of students live.
ARLA warned landlords must check with their local authority before altering their property or extending their portfolio or they could risk being fined.
Ian Potter, operations manager at ARLA, said: “HMO licensing and planning applications are not a new issue for landlords, but now there is the added complication of Article 4. There is no room for complacency – failure to comply could result in a hefty fine.
“It is therefore important for any landlord considering changing the use of a property to fully research the regulations in their area.
“For landlords with portfolios spanning more than one local authority area, this may mean different rules apply for each property. Factoring in the possible additional costs of purchasing the licence is also vital.”
