New Regulations For Houses In Multiple Occupation
Thu, 22 Apr 2010
Controversial new regulations governing houses in multiple occupation are set to go into effect this April, despite the outcries from landlords, letting agents and tenants, as well as groups including UK landlord associations, the National Union of Students and the British Property Federation.
The measures announced by the Housing and Planning Minister to further regulate HMOs come on the heels of a government commissioned study, completed last year, aimed at resolving perceived problems with HMOs. The study found that almost half of all local councils in England were in favour of changing the Use Classes Order, which states how a property can be legally used, and controlling the growing spread of shared rented properties perceived to be unsafe for tenants and a detriment to the community.
Starting in April 2010, any homeowners who decide to convert their house or flat into a rental property intended to be let to three or more unrelated tenants must first apply for planning permission from their local authority. This measure, which essentially uses planning laws to dictate the establishment of new houses in multiple occupation, is the government’s attempt to limit the unfettered spread of high concentrations of affordable housing, which many people believe adversely affects local communities and property prices.
However, the measure is not good news for would-be landlords, who will now have to go through the process and expense of getting planning permission and modifying their properties to comply with HMO safety regulations. It is also not good news for people who rely on affordable housing as a valuable source of accommodation, such as students, asylum seekers or even young professionals or the elderly who hope to cut down on living costs by sharing rented accommodation with other people to whom they are not related.
Furthermore, local authorities will gain greater flexibility over licensing for HMOs, which means more landlords will be forced to pay licensing fees, where before they may have only had to register their HMO without also needing to obtain a license. This move is intended to tackle the problem of substandard accommodations run by unprofessional and inept HMO landlords, however, it could also have the effect of driving up rent prices since landlords will need to recoup the cost of high licensing fees.
In addition to the measures that go into effect in April, of which you should be aware if you are or plan to be an HMO owner, the Housing and Planning Minister has confirmed that a proposal is still in the works for a National Landlords Register. The Register, which the government argues will help weed out rouge landlords, but which landlord groups contend will have no effect on rouge operators and will only penalise reputable landlords, will require English landlords to register annually, giving their names and addresses and the address of their let property.
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