Landlord & Buy-to-Let Magazine Issue 69, November 2016 | Page 4

For latest show news visit www.landlordshow.info industry news news round Got a news story worth telling? email: [email protected] 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.