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New planning orders 'will have negative impact'

15 March 2010


New planning orders could have a devastating effect on the rental property market', according to expert.

Alan Ward, chairman of the Residential Landlords Association, said the housing market would be "wrecked" for landlords, who would want to let property to nurses, young professionals and students, after the Planning Use Classes Order is implemented in April.

He warned: "The market hasn't woken up to the devastating potential unleashed by the Nimbys [not-in-my-backyard] in their studentification campaign."

The measures would prevent the expansion of sub-standard and potentially dangerous rented accommodation, according to housing minister John Healey.

Higher rents have forced yields to rise for landlords and total12-month returns have reached a level of 10.6 per cent which is a two-year record, reported LSL Property Services.

Landlords will now have to apply for new planning applications to certify their houses are intended for multiple occupants.

People wishing to move house may be interested in using self storage facilities.

Written by Emily Sanders
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