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 there is a £5,000 fine for

non-compliance."

"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