The landscape of property investment in the UK could be on the brink of significant transformation, with proposed changes to permitted development rights poised to reshape opportunities for HMO investors and developers.
NOTE: These are being proposed and are not currently in place!
Currently, property investors navigating the HMO sector can leverage permitted development rights to create up to six rooms in a house with en-suite bathrooms in non-"Article 4" designated areas, without requiring full planning permission. However, the construction of larger properties to accommodate this often necessitates extensions, which do fall under the purview of planning permission requirements.
The government has embarked on a consultation, set to conclude on April 9, aimed at expanding permitted development rights for householders seeking to extend their dwellings sans full planning permission. Among the proposed changes are enhancements to the allowances for single-story rear extensions, with the depth for detached houses potentially increasing from 4m to 5m, and for other houses from 3m to 4m. Moreover, two-story extensions could see their allowable depth rise from 3m to 4m, and the restriction on the new boundary rear wall being a minimum of 7m away from the garden's end could be lifted in cases where adjacent properties are non-residential.
Furthermore, the consultation suggests the elimination of the current limitations on wrap around extensions as well as the additional cubic meterage that can be created in a loft for terraced and other houses, currently capped at 40 and 50 cubic meters, respectively.
Additionally, the regulations surrounding dormers may undergo relaxation, potentially permitting their construction level with the exterior wall of the building, as opposed to 20cm inward from the rear wall. This will help to save on build costs when converting (as there will need to be less structural reinforcement) and allows for additional space inside the building.
Other proposals include the ability to increase the ridge height of a roof by 30cm. This will help developers as it accommodates the installation of a large enough floor beam, creating a structurally sound additional floor within the property.
Finally, it is also proposed that an additional floor can be installed to any property that is not listed, nor is within a conservation area. Interesting!
As developers, we are inclined to participate in the consultation process and voice support for these changes. The anticipated revisions are poised to offer considerable advantages for HMO property investors and developers, facilitating the creation of larger properties with increased room capacities. Such enhancements could potentially translate into properties commanding premium rents and yielding robust cash flows, bolstering the appeal of HMO investments in the UK property market.
We have provided a link to the consultation HERE.
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