A council in the north of England has been accused of an ‘abuse of power’ after it recently introduced an ‘immediate' article 4 direction preventing landlords converting family homes into HMOs.
The new regulations cover the Horwich area of Bolton outside Manchester and have been implemented since June albeit with no prior warning or 12-month grace period.
It is reported that the decision to bring in an immediate article 4 direction has been prompted by a significant surge in the number of HMOs in the area, which have risen from 170 to 700 in the space of a few years, prompted in part by the Home Office placing a large number of refugees in private accommodation via its dispersal scheme.
Bolton’s decision has sent shockwaves through the HMO development sector claims industry figure Des Taylor (pictured) of Landlord Licensing & Defence,.
He says that while there “might be a case for HMO numbers to be restricted, the council has no case to impose an emergency action without due notice, especially one that puts HMO landlords and developers at risk since they potentially face severe financial losses due to the government’s immigration policy".
“Councils should consider compensation schemes for their unreasonable actions.”
“If anything, councils should consider compensation schemes for their unreasonable actions.”
It is reported that such a significant influx of refugees and rising numbers of HMOs in Bolton have led to local concerns and protests, and prompted the council to take action.
“Typically, councils provide a year's notice to allow developers and investors to adjust their plans so they don’t incur huge financial losses, but Bolton has bypassed this convention,” says Taylor.
“This sets a dangerous precedent. Councils are increasingly making abrupt policy changes that disrupt developers' plans, with little regard for financial commitments made under existing rules.
"Other local authorities may now feel emboldened to follow suit.”
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