85% of landlords unaware of HMO changes

HMO landlords who are not up to scratch with new laws face large fines and expensive restructuring work. Research reveals more than 85% of landlords are unfamiliar with new laws set to come into effect next year.

New proposals mean landlords of homes of multiple occupancy will require new licences. Some 60,000 HMOs currently require a licence. A further 170,000 properties could need one under proposals which aim to improve housing conditions. The proposals could impose minimum standards of room sizes, storage facilities and waste disposal.

They would apply to all HMOs including conversions and properties of multiple use. Previously only HMOs of three stories or more have required a licence.

HMO landlords are unaware of the changes or not sure of the details. Under new rules local councils would have powers to adjust the minimum standards and licensing fees. Landlords who fail to get to grips with the new rules could be left with rooms they can no longer rent or even face fines. The good news is there’s likely to be a six-month grace period for landlords to catch up with new legislation. Transferring from an unlicensed property to a mandatory one is also likely to be pretty simple. HMOs can still be a very good investment, in the right area, targeting the right audience and managed closely.

More changes for the beguiled landlord to take on board, a survey taken recently shows to vast majority of landlords still feel confident of the long-term future as they see property values only going one way and that is upwards.

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