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.

@CurlyHairMare1 Is it a loss when you factor in the money you've earned from renting out the house?

People advising OP to go to the council..in many cases councils are fully aware of illegal HMOs and use them as temporary accommodation so they will not be in a rush to close any down.

The London borough I used to live in has a housing waiting list of over 30,000 and the council places homeless families in horrific, illegally built HMOs (one was featured in the Guardian recently) where families of 4 are trapped in a single mould-infested room that includes a kitchen and poorly functioning toilet🤢. They really don’t care.

OP, I’m sorry about your predicament. We recently sold our parents house and rejected offers from various Developers who clearly intended to turn the house into a HMO as we just couldn’t do that to the neighbours. Our EA completely understood even though it meant we accepted a lower offer which obvs hit his commission.

Would second the advice to approach the HMO landlord. Have you also considered selling at auction? You will make a loss if selling to a cash buyer but it hopefully won’t be as much as £100k.

We sold our house, which had nightmare neighbours, for a huge loss after 12 months on the market. I've never regretted it. Sanity is worth far more than money.

I could approach the landlord but I did some digging and he purchased his last few HMOs, including next door, with a mortgage so I’m not sure he’d have the cash. It’s worth a try, although I don’t have his contact details.

Lol at the response of some Mumsnetters to this sort of thing:

"Why on earth would someone not want to live next to an HMO? They're usually full of hardworking, wholesome young professionals, aren't they?"

Sure they are, Arabella. Sure they are....

People only notice the HMOs that are trouble...so selection bias. Neighbours often cause problems.

If anything homeowners are the worst. Bad tenants get evicted.

Try selling a house when your neighbour is running a loud business out of it without planning permission.

Because for a 'change of use' from a private home to a HMO the next door neighbours have to be informed and have the right to object and hopefully over rule.

In this instance the Op clearly was not informed.

And maybe you live in an urban area where everyone always was squashed in and more anonymous, but the Op bought a semi detached private house - now she is living beside six men who smoke and don't appear to work - and can only sell her house for £100k less.
Living beside 6 men who loitered and smoked in close quarters to my front door would really distress me (I can't actually see the difference from a homeless hostel... And yes, homeless hostels do have to be somewhere, but not without proper planning permission) - very few people would want to move in, so she has suffered a big financial hit. That really is not fair.

I don't understand your 'most strange' comment at all - what is it meant to convey?

Any house could have men who hang around outside and smoke and chat.

Maybe ask the landlord to let them smoke inside?

I'm surprised they smoke in the front garden. Does it not have a back garden?

The ideal community is a mix of different types of housing, and HMOs are a part of that. However, I know that some councils are limiting the number of HMOs in one area because too many are beginning to have a detrimental effect on some areas.

I would speak to your local councillor and or MP before you make a decision, as PPs recommend

We had one put up to the council too, 14 flats in a newly empty barclays bank. It was fought by the neighbours getting together and putting in representations. To stop it being granted is much easier than trying to get it changed later down the line am sorry to say. You should've been made aware afaik, in local press, a letter. I think informing the neighbours is a legal requirement.

It’s strange because shared houses have always existed. Call them a HMo and that appears to mean they become populated with smoking men, as opposed to say, students or low paid shift workers.
We all know how expensive houses are to buy- how else do single people live nowadays?!

and I have every sympathy for OP- there is no one who wouldn’t be devastated to lose that amount of money. I’m more surprised by the fact it’s become such an unpopular buy that the price has plummeted so much.

14 flats wouldn’t be a HMO, it’s just a small block of flats?

Bambamhoohoo likes to be controversial on every topic. Doesn't matter what it is, will argue against common sense.

I’d wait until the budget is announced at the end of November. A lot of people are holding off buying due to uncertainty. You might find you get more interest in the new year.

It was applied as a HMO. 14 rooms.

Who are you?

It seems that informing the neighbours is only required if planning permission has been applied for. Next door doesn’t have planning permission unfortunately

The ideal community is a mix of different types of housing, and HMOs are a part of that.

Ideal for who exactly?

Do they not need planning permission to change the use of the house to a HMO? They are supposed to IMO, because at the very least safety issues, fire etc.
Am sorry if not the case with you.

It's probably due to more reasons than the HMO that it's not selling tbh.

In theory they do, yes. But the council here appears to be giving HMO licences to ones that don’t have it.

Estate agent feedback has been that all offers have been withdrawn solely because of what the house is attached to.

@CurlyHairMare1 surely they need both planning permission and a license??! Contact the council and ask. Were you made aware at all of it being turned into a HMO? If not- you need to speak to a solicitor and the council..

Even if the landlord next door doesn't want to buy it, it might be desirable as a HMO to another Landlord? Presumably they would have no problem getting permission from the council?
Can the estate agent mention this in the listing?

I’ve spoken to the council and got nowhere as the planning department and the licensing department are different apparently!

Nope, I had no idea it was being turned in to an HMO. The guy that bought it failed to mention that part every time I spoke to him.