Article 4 - love or hate?
First things first, what is article 4?
Article 4 grants local authorities’ power to impose extra planning restrictions in designated areas, requiring planning permission for certain developments. This includes preventing changes like converting residential properties into HMOs that would typically be permitted without permission.
Pros of Buying Property in an Article 4 Area:
Preservation of Character: Article 4 restrictions aim to preserve the character of an area, ensuring it retains its unique features and appeal over time- great for future proofing your investments over the long term.
Community Cohesion: Article 4 areas often foster a sense of community involvement in maintaining the neighbourhood’s identity.
Stability in Property Values: The additional planning controls can contribute to stability in property values, as rapid changes are limited. Having a HMO in an article 4 can feel like a safe bet.
HMOs become commodities: The restriction can create a scarcity of HMOs, making existing HMOs valuable commodities due to their limited availability. If you can gain planning to convert a single dwelling into a HMO- You could be quid’s in. We have done this with project Belvedere.
Cons of Buying Property in an Article 4 Area:
Restrictions on Changes: Article 4 restrictions may limit your ability to make certain changes or renovations without obtaining planning permission.
Potential for Higher Costs: The need for planning permission can add extra costs and time to your development projects.
Less Flexibility: Article 4 can restrict the flexibility of property owners, especially if they have specific plans for changes or improvements.
Limited Development Opportunities: Some property types or changes may be entirely restricted, reducing potential development opportunities. Liverpool city council have had a huge crack down on converting single dwellings into HMOs in the most popular postcodes.
Before buying in an article 4 area, carefully weigh these pros and cons based on your investment goals and the specific regulations in place. Consulting with local planning authorities and councils is a must. Council website will also provide article 4 maps which highlight areas that fall within the restrictions, and what those restrictions actually are.