For years Harrow was one of the most receptive boroughs in London for HMOs. However, there was a significant change last month. We want to have a closer look at that here and the impact it will have on investors. Then, if you need help with guaranteed rent, property investment in Harrow, and more, you can trust us.
Welcoming HMOs
Nationally, you need planning permission and a license for large HMOs. Properties fall into this category if they have more than five residents from more than a single household and have shared facilities such as kitchens. The goal is to ensure each HMO is safe, meets living standards, and won’t have a negative impact on the area.
However, the rules are different for smaller HMOs. Typically, owners can utilise permitted development rights to convert them. They may still need a licence in some areas, but the conversion itself does not require as much red tape in many cases. Local councils have more discretion. Many still allow the use of PDRs, but others remove them with Article 4 Directions. This means planning permission must be obtained.
Harrow was one area in London where permitted development rights gave owners the freedom to create small HMOs. They were also more supportive of large ones, granting planning permission on around 70% of applications between 2021 and 2025. As a result, it was a great location for investors. Rely on us if you need help with property investment in Harrow.
A big change
Unfortunately, Harrow Council made a significant change to the HMO rules on 11th June. An Article 4 Direction came into force. As a result, it removes the PDRs for smaller HMOs. This makes it more difficult for owners to convert properties.
The move gives the council more control over HMOs in Harrow. They made the change to address issues they get regular complaints about, including noise and rubbish. In addition, it gives them the power to protect family homes in the borough.
Speaking about the change, Deputy Council Leader Councillor Marilyn Ashton said it was not about completely stopping HMO conversions. Instead, they want to ensure they are “in the right places” and ensure they meet “the right standards”. Crucially, they will be able to sift out any that are not acceptable.
Talk to us about property investment in Harrow
HMOs can be a really attractive option for investors, especially in areas where there is high demand for this type of housing. It can massively increase the potential income for a property. However, you must ensure you follow the letter of the law. Failing to do so, can result in huge fines.
Finefair Ltd is a great company to work with if you need help with property investment in Harrow and other parts of London. We can work with you to explore various options, including different types of properties, locations, guaranteed rent, HMOs, and more.
So, contact us today if you want to work with knowledgeable experts.
