New rental rules 'could wreck' buy to let sector

17 March 2010

Written by Gavin Elley

Buy to let owners could be affected by the Planning Use Classes Order that may come into force next month.

This is the warning of chairman of the Residential Landlords Association Alan Ward, who expressed concern at effects the order could have on the rental market.

In January planning minister John Healey said there would be new rules enforced in April that would mean planning permission needs to be obtained by landlords with houses in multiple occupation (HMO).

This would apply for properties housing three or more unrelated tenants, such as students.

But Mr Ward said this could "wreck" the rental market for those who let property to young professionals, nurses and students.

"The market hasn't woken up to the devastating potential unleashed by the Nimbys [not-in-my-backyard] in their studentification campaign," he added.

Mr Healey claimed that the new HMO rules were there to tackle unsafe and substandard accommodation on the buy to let market.

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