Article 4 of the Housing Act of 1988 is a directive that allows local authorities in the United Kingdom to impose additional planning controls on houses in multiple occupation (HMOs). These controls can include additional licensing requirements and stricter planning permission rules for landlords who wish to convert a property into an HMO.
The impact of Article 4 on property values and supply in the student market can be significant. On the one hand, it can lead to an increase in property values for non-HMO properties, as there is less competition for tenants. This can be beneficial for homeowners, as their property becomes more valuable. However, it can also lead to a decrease in property values for HMO properties, as landlords may struggle to meet the additional licensing and planning requirements, resulting in less demand for HMOs.
In terms of supply, Article 4 can lead to a decrease in the number of HMOs available to students. This can be problematic for students, as there may be a shortage of affordable housing options available. Additionally, landlords may be less likely to invest in properties for the student market, as the additional regulations and costs associated with Article 4 can make it less profitable.
However, the Article 4 direction may also bring benefits to the student market. It can help to improve the quality and safety of HMOs, as landlords will be required to meet stricter standards. Additionally, it can help to reduce anti-social behavior and noise complaints associated with HMOs, which can improve the quality of life for residents.
Overall, the impact of Article 4 on property values and supply in the student market is complex and can have both positive and negative effects. It's important for local authorities and landlords to carefully consider the potential consequences before implementing Article 4 directions
Written by First 4 Lettings
