"HMOs remain an attractive investment opportunity, often providing higher yields and greater income security than standard buy-to-let properties. However, they come with a more complex regulatory landscape, particularly around licensing and planning.""
- Steve Cox - Fleet Mortgages
Buy-to-let specialist lender, Fleet Mortgages has announced that it has launched a new guide designed to help mortgage advisers support both new and existing landlord clients looking to invest in Houses in Multiple Occupation.
The guide, for advisers and landlords, entitled ‘A Guide to HMOs: Licencing, Planning & Article 4’, contains clear information on what defines an HMO, how licencing works, the implications of Article 4 Directions, and how planning permission fits into the picture.
Available now via the Fleet Mortgages website, the Guide outlines the definitions of small and large HMOs, mandatory, additional and selective licencing requirements, change of use rules between C3, C4 and Sui Generis planning categories.
The new guide also covers how Article 4 Directions impact permitted development rights as well as examples of different licensing/planning scenarios.
Fleet’s own HMO lending criteria and how it can support landlords is also included.
According to the lender, the guide has been created in response to growing interest in HMO investment and is part of its wider commitment to education, support and product provision for specialist buy-to-let borrowers.
The new guide can be downloaded here
“We’re very pleased to be able to share this new guide with advisers and their landlord clients," comments Fleet Mortgages' chief commercial officer, Steve Cox. "HMOs remain an attractive investment opportunity, often providing higher yields and greater income security than standard buy-to-let properties. However, they come with a more complex regulatory landscape, particularly around licensing and planning."
He added, “This guide aims to demystify some of those requirements and provide clarity on how Article 4 areas work, what different licence types involve, and what sort of properties can be considered. It’s a really useful tool for those advisers supporting clients who are either new to HMOs or are looking to diversify and expand their portfolios into this space.
“We want advisers to feel confident discussing HMOs with their clients, and to know that Fleet is here to help with both product expertise and lending support.”
