Lender offers guidance to help brokers navigate rising demand and regulation
Buy-to-let lender Fleet Mortgages has introduced a new resource designed to help advisers and landlords navigate the complexities of the houses in multiple occupation (HMO) sector.
The lender’s new publication, A Guide to HMOs: Licencing, Planning & Article 4, is now available for download from its website. It offers practical guidance for mortgage advisers supporting both seasoned and first-time landlords investing in HMO properties.
The guide includes information on key regulatory topics such as definitions of small and large HMOs, the three types of licensing requirements — mandatory, additional and selective — as well as the planning rules for switching between use classes C3, C4 and Sui Generis. It also explains how Article 4 Directions can affect permitted development rights and outlines various planning and licensing scenarios.
Fleet said the launch was in response to rising interest in HMO investments and forms part of its broader support strategy for advisers and specialist landlords.
“We’re very pleased to be able to share this new guide with advisers and their landlord clients,” said Steve Cox (pictured), chief commercial officer at Fleet Mortgages. “HMOs remain an attractive investment opportunity, often providing higher yields and greater income security than standard buy-to-let properties. However, they come with a more complex regulatory landscape, particularly around licencing and planning.
“This guide aims to demystify some of those requirements and provide clarity on how Article 4 areas work, what different licence types involve, and what sort of properties can be considered. It’s a really useful tool for those advisers supporting clients who are either new to HMOs or are looking to diversify and expand their portfolios into this space.
“We want advisers to feel confident discussing HMOs with their clients, and to know that Fleet is here to help with both product expertise and lending support.”
The new guide follows the lender’s recent launch of a five-year fixed rate mortgage product range tailored for HMO and multi-unit block investments. These include a 5.19% fixed rate with a 3% fee (minimum £750), and a 5.74% option with a fixed £999 fee, both available up to 55% loan-to-value.
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