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‘Article 4 Direction’ Regulations – The impact on student and landlord

Article 4 Direction regulations were established on 1 October 2010 by local councils to restrict the development of house share style properties.  This affects all shared properties housing between 3-6 occupiers, who are not related to one another and is highly likely to take effect in areas with a high number of HMO properties ie; College and University locations.  Usually, a local council will give one year’s notice prior to an Article 4 Direction becoming applicable.

In areas where Article 4 Direction has come into force, the impact is evident on both the home occupants and the landlords.  These regulations affect HMO properties popular with students and other young people.  For landlords considering purchasing in locations where the Article 4 Direction exists, one could buy and develop a property, then be unable to use it as a house share if refused planning, thus the rental flow on the property would be diminished.  In addition, the value of owner-occupier houses can fall as the market for buyers is reduced.

Currently, in Salford, the Article 4 Direction is not yet in place and therefore, development can proceed without restriction, although Selective Licensing regulations have already been enforced in the nearby areas of Seedley, Langworthy and Weaste.  This particular scheme is designed to tackle the most severe issues in the private rented sector, and intended to address the problems of poor quality landlords and anti-social tenants.  It is hoped that through this process, both the management of the properties and the quality of the properties themselves, can be improved.

Mistoria Estate Agents and its associated group of companies are specialists in refurbishing, furnishing and managing properties within areas of Salford affected by Selective Licensing regulations.  We ensure that these properties are fully compliant in terms of the required specification and graded well by the council, thus achieving a far greater rental income.