Property investors warned of change in law

Property investors looking to buy large houses for student accommodation should be aware of a new piece of legislation, which requires them to have planning permission.

Roger Chadwick, a partner at Wiltshire law firm Awdry, Bailey & Douglas, says changes to the Housing Act 2004, which come into effect from April, mean that owners who want to turn a large family home into a so-called house in multiple occupation will need planning permission from the local council.

"It´s student lets that will be most effected by this amendment," said Roger, "but any house of three or more storeys - including basements or annexes - being let to five or more people from two or more families will be effected.

"It has become quite common for the parents of university students to buy a property and let the spare rooms to other students as an investment, rather than pay rent which is never recouped," said Roger.

"Now I am advising clients who are looking at such an investment to consider the legal implications first. It has certainly made this kind of investment more complicated, and non-compliance can carry a fine of thousands of pounds."

"Anyone looking to invest in a property which they want to use as a house in multiple occupation should enter into an option to purchase with the seller," advised Roger.

"This will allow them to abandon the sale if planning permission is not granted, whist preventing the owner from pulling out and re-selling the house with planning permission achieved at the client´s expense."

Awdry Bailey & Douglas has offices in Devizes, Marlborough, Calne and Wootton Bassett. For more information about the legal aspects of buying and selling property, contact Roger on 01380 732927, email roger.chadwick@awdrys.co.uk or log on to www.awdrys.co.uk