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> Fly in Olympic Ointment for Londoners |
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Article kindly provided by Julie Ford
Hemel
Landlord Property Network
www.hlpn.co.uk
07904 288188 |
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As
the Olympics draws ever closer, more and more
homeowners are rubbing their hands together in
anticipation of the money they can potentially
make from renting out all or part of their home
to foreign tourists visiting for the Olympic games. |
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There is a plethora of websites popping up specifically
designed to help homeowners make a killing during
the month the event is on and many established agents
offering a variety of deals to cash in on the golden
egg for London’s property owners
Equally,
lettings agents adverts have begun the transition
to incorporate the short term letting and high earning
potential that London Olympics presents to us. But
is this a false hope? Is the publicised earning potential
lulling homeowners in to a false sense of financial
security in this economic down turn.
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Homeowners
and agents alike in the London area need to
be very careful when considering renting out
their property for the momentous occasion, for
there is a little known law that may see many
looking to cash in on the rental potential the
Olympics brings, facing huge fines of £20k
and a criminal record if they do not get planning
permission to let during the Olympics.
This
little known fly in the ointment is Greater
London Council (General Powers) Act 1973 provides
(as amended by s.4 of the Greater London Council
(General Powers) Act 1983) which stipulates
that a private residence can not be rented out
in for a period of 90 days or less, unless planning
permission is sort for the change of use from
permanent to temporary.
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The
Act states “(1) For the purposes of s.22(1)
of the Act of 1971, the use as temporary sleeping
accommodation of any residential premises in Greater
London involves a material change of use of the premises
and of each part thereof which is so used.
(2)
In this section -
(a) “use as temporary sleeping accommodation”
means use as sleeping accommodation which is occupied
by the same person for less than 90 consecutive
nights and which is provided (with or without other
services) for a consideration arising either -
(i) by way of trade for money or money’s worth;
or
(ii) by reason of the employment of the occupant,
whether or not the relationship of landlord and
tenant is thereby created;
(b) “residential premises” means a building,
or any part of a building, which was previously
used, or was designed or constructed for use, as
one or more permanent residences “.
By virtue of the Interpretation Act 1978, the reference
to s.22(1) of the 1971 Act now relates to s.55(1)
of the 1990 Act.
So
far Tower Hamlets, Islington, Southwark, Kensington
and Chelsea, Camden and Westminster have all warned
that they will be policing this very tightly and will
issue enforcement notices to anyone found to be renting
their property out during the Olympics for 90 days
or less, who have not applied and received the required
planning permission.
If
homeowners are not aware of this law, or place their
property with an agent who is not up to speed on this
legislation it could cause untold financial heartache
for homeowners and agents alike
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About
the Author
Julie
Ford runs the Hemel Landlord & Property Network
The
network is predominately designed for landlords
and property investors, we offer advice and guidance
on all aspects of buying, selling, renting and
managing your property, whether you are a 1st
time landlord or a seasoned investor The Hemel
Property Network has all the tools you need to
help you make the most of your investment.
We
meet Last Thursday of the Month, at 19:00 and
encourage our guests to arrive early so that you
can get to know your fellow property networkers.
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