Feeling sore over Article Four

Since 2010 in England (and much more recently in Wales) the introduction of the C4 Planning Use Class for small HMOs has meant that letting a house or flat to two or more households has represented a material change of use – technically requiring planning permission. Fortunately, in England at least, this is covered by general permitted development meaning that no application is required.

Unless the local authority has designated an Article 4 Direction removing all permitted development rights, and subsequently requiring landlords to apply for planning permission before letting to sharers instead of a single household or family.

The only saving-grace has been that where permitted development rights have been removed – no planning application charge could be levied.

Until now!

Thanks to an easily missed statutory instrument tabled before Christmas 2017, a landlord may now have to pay a fee (increased to £462.00) for applying for a change of use in an area where permitted development has been withdrawn.

Under the new law a landlord in ‘Council area A’, where there is permitted development will not have a fee to pay – as no application is necessary. Yet in ‘Council area B’, where permitted development rights have been removed through an Article 4 Direction, a fee of £462.00 may be demanded.

This change encourages local authorities to remove permitted development so they can gather a fee from landlords.

The likely impact of the policy will be a further entrenchment of those properties that are already in shared usage; as if a landlord wishes to change the use where permitted development has been removed, even for a short period, and then convert back a fee will be applicable.