Fleet Mortgages has launched a guide for advisers and landlords titled ‘A Guide to HMOs: Licencing, Planning & Article 4’.
The guide aims to help mortgage advisers and landlords investing in houses in multiple occupation (HMOs) understand key aspects like licencing, Article 4 Directions, and planning permissions.
The guide is available on the Fleet Mortgages website and covers definitions of small and large HMOs, various licencing requirements, and rules for changing use between C3, C4, and Sui Generis planning categories.
It also explains the impact of Article 4 Directions on development rights and provides examples of different licencing and planning scenarios.
Additionally, it includes Fleet’s HMO lending criteria.
Steve Cox, chief commercial officer at Fleet Mortgages, said: “We’re very pleased to be able to share this new guide with advisers and their landlord clients.
“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 licencing and planning.”
Cox 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.”
