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Mandatory HMO licensing set to quadruple
The government has announced
plans for mandatory licensing of all
shared homes in England in a move
that could quadruple the number
of homes requiring a license from
60,000 to 234,000.
The wide ranging plans will expand the
mandatory licensing of HMOs to include
of the shared homes currently excluded
from licensing due to their configuration
such as two storey buildings.
The plans will also see minimum
HMO room sizes introduced, a database
of rogue landlords and tougher vetting
of HMO landlords. The measures aimed
at helping to clamp down on rogue
landlords and unfit shared homes.
The government says the measures
aim to further strengthen local
authorities’ role in tackling problem
homes and bring an end to ruthless
landlords who exploit tenants and
charge them extortionate rents to live
in poor conditions.
The proposals published in October
intend to improve standards for shared
homes in England by making it clear
that bedrooms must not fall below a
minimum room size, closing a loophole
which lets some landlords let out rooms
far too small for an adult to occupy.
The measures are included in ‘Houses
in Multiple Occupation and Residential
Property Licensing Reforms’ published
in October and also aim to widen the
net for compulsory licensing of HMOs
by including all homes shared by two or
more households.
Current HMO licensing rules only
apply to properties of three storeys or
more and exclused homes attached
to businesses. The new rules will cover
all shared homes regardless of the
configuration of the property.
The widening of the eligibility for
shared homes to be licensed is likely to
bring in an additional 174,000 properties
into mandatory HMO licensing making
the total 234,000.
In a recent government consultation,
78 per cent of the respondents said
that that HMO licensing should cover
all relevant HMOs regardless of their
number of storeys.
Half of local authorities have
reported that non-licensable HMOs
have a greater number of enforcement
activities for hazards when compared to
licensed HMOs.
Under the proposed plans where a
landlord fails to obtain a licence they will
be liable to pay a potentially unlimited fine.
2 Landlord & Buy-to-Let Issue 69 • November 2016
The government says that many
council officers believe that shared
homes that currently fall outside
HMO licensing arrangements have
more problems than licensed houses
including fire, electrical and gas safety.
Additional proposals include the
requirement of landlords of shared homes
to provide decent storage and disposal of
rubbish and waste and the tightening up of
the fit and proper person test for landlords
and ensuring criminal record checks are
carried out to weed out rogues.
The government says these measures
will complement other government
efforts to crack down on rogue landlords
who cash in on renting out homes to
vulnerable people.
More than £5 million of targeted
government funding to 48 councils has
brought a big increase in the number
of homes checked over 3 months. In
early 2016, more than 33,000 homes
were inspected and nearly 2,800 rogue
landlords are now facing prosecution
for providing substandard homes.
Since 2011, government has provided
£12 million so local authorities can carry
out more raids, issue more statutory
notices and demolishing beds in sheds
and other prohibited buildings.