Wednesday, November 9, 2005

HMOs and Licensing (Houses of multiple occupation

Where more than two people occupy a property but don’t form a single household, usually because they are not related, the property will now be classified by the government as an HMO.

In England and Wales with effect from “late autumn” (the exact date is still to be decided), private landlords with HMOs of three or more stories AND with five or more tenants will have to get a license. These impose tough standards on fire and electrical safety, the number of people in occupation and even the kind of person who can be a landlord.

Local authorities can also “selectively extend” licensing in part of their area to ALL properties (not just HMOs) if they think there is a need, say, if a local problem with antisocial behaviour exists or they think the standard of housing justifies it.

Each local authority will set its own license fee. Landlords who don’t register can be fined up to £20,000 plus having to repay rent received whilst not registered.

However, there is likely to be a 3 month grace period when the scheme starts. With this aditional organisation and 'policing' will this dent the buy to let market? Is there a hidden agenda by the government? i.e. think of the amount of poll tax lost by local authorities within the UK, the power of policing will be shifted towards the local authority!!!