Another Licence for HMO properties

Key to HMO
Sep 24 2018

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.

It is worth double checking to see if your property is now included in the new HMO licence as prior the licence was only applicable to properties that were at least three storeys in height.

I know of several landlords who converted barns into HMO’s who will now have to seek a new licence.

The licensing scheme was previously restricted to properties that were three or more storeys in height.

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.

It is not clear from the powers implementing this licence if there will be any period of grace. If not you can expect enforcement officers to be quick to top up the coffers with the opportunity to fine landlords.

It is yet just another task that private Landlords have to deal with, factor in maintenance plans to comply with legislation, the recent changes in tax, the right to rent headache and you can see why I am so busy with section 21 evictions as landlords are removing tenants and either selling up or switching to short term rental via places like Airbnb.

Add in that the government also wants any HMO to have a suitably well-equipped kitchen, bathroom and washing facilities.

It is not hard to see why many landlords are now considering tenant eviction and moving on with other means of making their investments work.

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