Estate agents are urging student landlords to buy up property before local councils bring in new powers to limit the number of shared houses.
Around 40 councils in England are at various stages of implementing special planning rules to stop landlords opening new shared houses or ‘small HMOs’ - houses in multiple occupation.
Some councils, like Oxford, have a blanket ban on shared houses, while others restrict the ban to certain streets or postcode areas.
The planning rules say that from the start date of the ‘article 4’ restriction, landlords must have planning permission for a small HMO if:
● They are opening a new HMO for three to five unrelated tenants sharing kitchen or bathroom facilities
● Switching a former small HMO back from a single tenancy to a small HMO
Plymouth, Devon, is one area where article 4 powers are due to come in to force from September 14, 2012.
The local branch of national estate agents Connells is encouraging landlords and property investors to act quickly to miss the deadline by buying and letting property before the deadline.
Although planning permission for opening a small HMO is needed from the start of article 4 restrictions, any shared house already let does not have to apply for permission retrospectively.
"With a large student population, Plymouth has many properties which are suitable for letting as shared houses," said David Doe, of Connells.
"As well as local landlords and investors, we see a number of parents who buy a property for their children to live in while studying at university or college in Plymouth.
"After September 14 it will be more difficult to make this type of purchase and rent out separate rooms to various individuals. This is why we are urging landlords, investors and parents of students who have been thinking of buying a home to take decisive action now and avoid having to apply for permission via the council."
