Another Licence for HMO properties
Have you obtained your new HMO licence?
Commencing Monday 1st October any property that is being rented with more than five people who are sharing a common facility will require a new HMO licence. Common facilities include bathrooms, kitchens, stand alone toilets, etc.
Yet again this legislation is going to burden both landlords and tenants with additional costs, I have seen some industry experts claim this new licence will add £96m in fees and admin charges which ultimately will be passed on to the long suffering tenants. With the forecast of over 160k properties being impacted its going to hit each relevant landlord with an additional cost of around £1400, therefore potentially increasing rents by over £100 a month.
I know of several landlords who converted barns into HMO’s who will now have to seek a new licence.
With the fines for not having a licence reaching up to £30k is it worth not double checking to make sure your property is properly licenced?
Will this new licence deter rogue landlords who have slum properties with numerous tenants sharing a building? Probably not.
Add in that the government also wants any HMO to have a suitably well-equipped kitchen, bathroom and washing facilities.