14th
Dec 2016
The DCLG (Department for Communities and Local Government) has just concluded its consultation for the ‘Houses in Multiple Occupation (HMO) and residential property licensing reforms’, which finally ended on 12th December.
The consultation invited buy-to-let landlords to voice their opinions on changes that the DCLG is hoping to introduce shortly. This will be achieved by making new amendments using secondary legislation, in its attempt to increase the numbers of homes that fall under mandatory licensing throughout England.
The Department proposals include :
The storey rule will be removed so that all houses that has five or more tenants with at least two family groups, will be subject to mandatory licensing, no matter how many storeys the property has. Their reasoning behind this is that it will help councils to insist on higher standards and have greater control over migration.
All flats below and above business premises , irrespective of number of floors/storeys will now incur mandatory licensing.
In line with overcrowding standard of the Housing Act 1985 it will set a minimum room size of 6.52sqm, as some landlords are taking advantage of a recent upper-tier tribunal ruling which allows them to let rooms that are too small for an adult to legally occupy.
It is also planning to introduce measures that will require landlords that have shared homes to offer proper refuse and storage disposal provision. Another new requirement that may be passed is that landlords will have to undergo the 2016 Housing and Planning Act's fit and proper person test.
The new measures are looking to be introduced in the first quarter of next year and landlords that fail to apply or achieve the criteria for a licence could face fines of considerable sums.
Gavin Barwell, the housing and planning minister, said: “In order to build a country that truly works for everyone we must ensure that everyone has somewhere safe and secure to live.
“These measures will give councils the powers they need to tackle poor-quality rental homes in their area.
“By driving out rogue landlords that flout the rules of business, we are raising standards and giving tenants the protection they need.”
It is predicted that at least a further 174,000 HMOs will have to undergo mandatory licensing.
David Cox, managing director of an association of residential agents is strongly opposed to the new measures and said: “Landlord licensing doesn’t work.
“Councils already have a wide variety of powers to prosecute for poor property conditions and bad management practices, with penalties ranging from fines to seizure of property and even imprisonment.
“But councils don’t have the resources to undertake effective enforcement action. Imposing more burdens on councils will not mean improved standards and better conditions for tenants – it will merely mean more laws that are not being enforced.
“Further, we have to consider the unintended consequences of minimum room sizes.
“Some people are happy to take small rooms to keep their costs down. If these rooms are no longer available, where are people supposed to live?
“What’s more, if a small room in a property can no longer be let out, the costs of that room will be spread across the other tenants living in the property; pushing up their rents.
“A habitable room is essential but a one-size-fits-all policy doesn’t always work.”
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