Salford Article 4 – Area Extension

Salford City Council is set to undergo a significant change with the extension of the Article 4 Area, as revealed in a letter issued on 08/11/23. The expansion, scheduled to take effect on 17/11/24, will encompass key areas including Swinton, Clifton, Little Hulton, Walkden, Worsley Village, and Winton. Seeking input from the community, the council has initiated a consultation process, encouraging individuals to provide their insights on the proposed changes by no later than 05/01/24.

For Salford’s HMO (House in Multiple Occupation) landlords, these developments carry several implications:

1️⃣ Planning Permission Challenges: With the extension of the Article 4 Area, new HMO conversions accommodating 3-6 people will now require planning permission. This not only increases the administrative burden but also adds an element of risk and cost for landlords.

2️⃣ Value Appreciation for Existing HMOs: The new Article 4 area could lead to a boost in the value of existing HMOs within its boundaries. This appreciation in value may present an opportunity for current landlords to capitalize on their investments.

3️⃣ Reduced HMO Supply Growth: The higher barrier to entry, imposed by the need for planning permission, is likely to result in a slowed growth of HMO supply in the specified areas. This could impact the overall availability of such housing options in the region.

4️⃣ Certificate of Lawfulness Requirement: Landlords looking to sell an HMO as a going concern will now need to obtain a Certificate of Lawfulness, adding an additional step to the selling process.

5️⃣ Narrowing Window for New Conversions: The impending changes signal a closing window of opportunity for landlords considering new HMO conversions. The extension of the Article 4 Area emphasizes the importance of acting promptly for those looking to enter or expand within this market.

Landlords and interested parties can access further details and participate in the consultation process on the Salford City Council’s official website: Salford City Council – Article 4 Direction.