3rd
Apr 2016
Lewisham Borough Council has pushed through a dramatic increase of HMO license fees for renting out properties below or above or below any commercial property.
The council received approval for an HMO's license application fee increases earlier this month (March 2016) after its supplementary committee approved the proposals.
Lewisham Council are charging an £180 application fee per living quarters, so if an HMO property had six bedrooms it would cost £1080, the rate has remained the same since 2012.
The new proposals means that when implemented, the application will be increased by a whopping 278%, as each unit of accommodation will cost £500.
Any bedroom within in an HMO or hostel will be charged at this rate, so for a six bed roomed property the application fee will be £3,000, the maximum fee will be capped £5,000 per property. Licences will last the term of five years. The new additional licensing scheme will only apply to HMOs above or below commercial premises.
An independent licensing scheme for lettings and management agents asked the council to allow its officers to take advice from stakeholders and agents to work out a fairer rate, as it submitted details of all the latest HMO fees throughout London.
The council countered by saying that their financial appraisals had been reached with the assistance of an external consultant and that the 5 year life of the scheme would be self funding. They said that first time applications from accredited landlords would receive a 20% discount; those landlords licensing two or more properties would be eligible for a 33% reduction/discount.
Isobel Thomson said: “It is disappointing that Lewisham Council has decided to implement such a large increase in fees which will ultimately be passed onto tenants in the form of higher rents. Once again, these fees will be paid by good, responsible landlords and letting agents whilst rogue landlords will continue to evade the licensing scheme.
"I would urge the council to publish their financial appraisal and work with landlord and letting agent associations to explore ways to reduce their excessive scheme administration costs. I would also encourage the council to extend their accreditation discount to properties that are managed by an accredited letting agent.”
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