To accept a huge loss on my house

[CurlyHairMare1]

I live in a semi detached house in a quiet cul de sac. I’ve spent a lot of money doing it up and making it lovely. Early this year my neighbours (the ones I’m attached to) sold their house incredibly cheaply as it needed an awful lot of work doing to it.

A man bought it to do up and rent out, I understood he had a property business so assumed he’d be the landlord.

Fast forward to now and he’s actually turned it in to an HMO. He has a number of them across the city.

I put my house on the market in Spring and I just can not sell it due to the HMO. I’ve had a number of offers accepted and they have all pulled out when they have found out what I’m attached to so I’m now declaring it up front.

Would I be unreasonable to sell my house for way under asking price just so I can get rid of it? The estate agent has suggested it would need to go for nearly 100k less to even get any kind of interest.

I’m exhausted with the whole situation.

"AIBU?" is the wrong question. The reality is you'll need to cut your losses if you want to move.

Can you keep it and let it out?

Genuinely think this is some sort of attempt at stirring up some sh1t about the kind of people who tend to make up a heavy majority of HMO residents. If your house is literally attached to this other one, you will have received a letter that details how you might raise objections. HMOs on a ‘quiet cul de sac’ would not pass a feasibility study for a start

Yeah I've lived in several houseshares and there was no living room, every room was just a bedroom then kitchen and bathroom.

I've lived in HMOs. First one was nice at first, but the nice people moved out and then the nasty people moved in (parties, getting drunk, smoking weed, doing coke and drug dealing, and I had my stuff nicked.) The second one I didn't last long in, it was a house split into two flats, one guy lived in the upstairs flat and the downstairs flat had four bedrooms, a bathroom and a kitchen. The landlord was round all the time and would tell me off for doing stuff (none of those things were against the rules or in breach of the tenancy agreement.) We had to pay to use the tumble dryer but weren't allowed to dry clothes inside, the rotary washing line in the garden was falling apart, and there was no gate, so I didn't much fancy leaving my clothes outside. Didn't last long there, I moved into a studio flat after less than a year and a half, (my own bathroom and kitchenette, bliss!) Then found out I was pregnant, applied to the council for housing and now live in a two bedroom flat. Miss my old flat, it was lovely.

So when you speak to planning enforcement, what do they say? If you report this as a breach of planning, they will decide if its expedient to take action. If you are saying there is an article 4 in place, thats because they cared enough about limiting HMOs to pursue an article 4 to remove deemed consent for conversion to an HMO. It usually then follows they will enforce against it, but yes there is often the issue that their licensing dept might have licensed it. If they won't, id like to know their reasoning and id also be speaking to my local ward members to ask them why. The way to make it politically expedient is to put pressure on members and also highlight the embarrassment of them not having two arms of the council aligned.

That’s exactly what I can’t get my head around - 2 departments of the same council not communicating with each other! If one has put an article 4 in place to not allow HMOs without planning consent, how can the other then issue a licence without checking if it has planning? The mind boggles.

I haven't had time to read all the answers, so sorry if it's already been mentioned, but one thin g that's worth looking at is whether the house is subject to any restrictive covenants. It's a long shot, but you can get a coy of the title from the Land Registry, and if the house was built before the war it's quite likely to be subject to restrictive covenants, as they were the only way of controlling the use of a house before planning law was introduced after the war.

You may find, for example, that there is a covenant restricting use to a single dwellinghouse, or prohibiting using the house for business purposes, and an HMO would potentially be a breach of both covenants.

If you do find any such covenants then the next question is who, if anyone, can enforce them, and in particular whether you can do so. You'd need legal advice on that, and it may well be disappointing, but it would certainly be worth looking into.

Estate agents are also usually letting agents and members of property managers and letting agent partnerships.

They work together with landlords to pay the cheapest possible price for property.

Take no advice from estate agents. Years ago they could be relied on to give good advice, now they get more commission as letting agents, and all you are doing by selling a house under value is lining their pockets.

By all means sell under value if you can escape commissions and legal fees, but think carefully before you do. Have a look around the neighbourhood. Houses owned by property managers and landlords usually have something similar like the same front doors, the same cladding etc. The detached houses on the estate where I live have been bought up - during and just after covid - by a collection of people in property as a partnership and turned into two homes at very high rents, to keep the residents of 'quality'.

... or simply a shared house of four people ! Or an owner + 3 lodgers , Or two owners and two lodgers etc etc .... They are usually in city centre areas where shared houses or students need to be controlled due to occasional overcrowding / fire safety / poor conditions etc etc . With recent graduates and school-leavers unable to buy houses or rent one-bed apartments ( if they're on less than 40 000 ) .... I expect very many young people under 45 would end up living in HMOs . . . . . .until they save up to buy - - - - - - - - -( in their 50s )

Local councils not knowing what they are doing is quite a common issue.
If you have evidence of the article 4 (eg a document / email) then put in a stage 1 complaint to the council as to why they gave planning permission for the HMO when there is an article 4 restriction. Put the onus on them as to what they will do about it. Threaten legal action on the council. Get some legal advice. Which legal do a service where you pay an annual fee of £99 (sometimes cheaper on an offer) then you have access to solicitors for a range of issues and can call as often as needed. Your home insurance may also have a legal helpline.

As the poster below also states check the deeds for restrictive covenants with land registry - probably do this before complaining to the council as then you have 2 counts of them failing in their duty. You can check with land registry for the title deeds - lots of online tools to do so - may have to pay a small fee for these.

There is much you can do to sort this out - a pain to do so, but that is life. Best of luck.

Have you ever let a house?

I haven’t! I need the money from the sale of my house to be able to move too.

Thanks so much for all of your advice.

I ordered a copy of the deeds from Land Registry, and it turns out there are a number of restrictive covenants. One of them being the house can’t be turned into anything other than single occupancy!

OP, what a turn up for the books! What a positive piece of detective work and research. I'm sure the next steps won't be easy, but I'm so pleased to read this update. You must be so relieved and delighted you posted on here. @Wooky073 what an incredibly helpful contribution.

This is such good news! And when the dust settles and you can remarket your house, you can tell prospective buyers this salient fact - they are protected in a way which they aren't with most houses.

What are you going to do next?

I think the next step would be to try and find out who can enforce restrictive covenants

It’s normally the house builder/developer. However it would certainly be worth telling the council. Have you got legal help as part of your house insurance? I’d be contacting them if so.

Keep updating. I have proffered advice but I have learnt some more which I am certain will prove useful in the future

It is really difficult to get anyone to take notice.

You will need legal help (work/house insurance).

I was told that the insurance in the HMO and the houses around it (if ever affected, say by a fire) would be null and void too.

Legal, local councillor, MP.

Thanks, would you mind explaining a bit more about the insurance part?

I agree this is going to keep happening - but the reason is that our young adults can’t afford what generations before them had. So many people are negative about HMOs, but very often they are young professionals. I lived two doors from one and it was done to a high standard (couldn’t believe how small the rooms were though) and never heard a peep from the residents, no noticeable increase in cars. Sold my house at market value. My eldest also spent the last year living in one - the landlord was great, decorated between each tenant, fixed issues very promptly (tiny room too though!)
I’m not suggesting OP is being negative - potential buyers are. The problem here seems to be the council hasn’t enforced a big enough bin area, parking spaces or general outside space that isn’t at the front. I’m really pleased to hear there’s been a development which may change things for OP but in the meantime I would contact the council to liaise with the landlord about any changes that could be done (with clauses in tenancy agreement) to improve neighbourly relations. My eldest had one bad tenant in the HMO - landlord dealt with them promptly and the atmosphere improved. LL had four HMOs in the same terrace and you honestly wouldn’t have known, they were quiet, neat and tidy. I wish OP’s neighbour was like that!

This isn’t supported accommodation. Whilst living in the HMO my eldest worked full-time (40-hour week) and another tenant was a teacher - lived there Monday to Friday. There are many reasons for needing an HMO room.

Because the covenant was ignored, there was a risk that any claim on the house insurance (HMO or your own) maybe invalidated. ( and of course insurance companies will look for a ‘get out’.)

Check with a lawyer, check with your mortgage company.