Local Councils Retain Control of HMO Regulation

A new law – which came into force on 1st October – gives “localist” powers to town halls in their treatment of shared rented housing, reports the Residential Landlords Association News Service

And the private rented sector can brace itself for some “bureaucratic nightmares” – says the Residential Landlords Association.

Earlier this year the coalition government took a fresh view of Labour’s plans to force private sector landlords to apply for planning permission to allow a property to be shared by three or more unrelated people.

They revoked that order but still gave local authorities the power to insist on planning permission in areas that were considered to have a problem with clusters of shared housing – such as student areas surrounding the UK’s universities and colleges or young professionals such as nurses or teachers.

Fulham Landlord Fined £20k for HMO Fire Safety Breaches

A landlord in Fulham has been fined around £20,000 for fire safety breaches in a multiple-occupancy property he owned, just two months after being ordered to pay back £37,000 in rent.

Rizwan Ahmed was ordered to pay back 12 months housing benefit after it was found that he did not have the proper House in Multiple Occupation (HMO) licence for the nine-bedroom, three-storey property he rented out to tenants on Fulham Road.

Just two months later, the landlord was back before the Residential Property Tribunal (RPT) – tipped off by Hammersmith and Fulham Council – accused of serious fire safety breaches. It was found that the Fulham Road house was in a state described as ‘appalling’, according to the RPT report.

RLA Oppose Local Authority Red Tape on HMOs

Local authorities could have the power, later this year, to declare their own “no-go” zones for privately rented shared houses.This would replace the current need to obtain planning permission if a landlord wanted to rent out an existing family home to a group of tenants such as students, nurses or young professionals.

But the government’s policy of reducing the burden of national legislation on the sector could create a local mass of new red tape – says the Residential Landlords Association.

That’s why the RLA is lobbying the new housing minister Grant Shapps on his planned revision of the new planning regulations that came into force three months ago.The association has already attacked the current position – where a landlord with planning permission to rent out a shared house, and then lets it to a family, may not be allowed to switch back to a shared house at a later date.

That was part of the former government’s plans to restrict the numbers of small ‘houses in multiple occupation’ Grant Shapps, however, plans to relax that legislation but instead, from 1st October, he proposes to allow local authorities to apply the rule in areas they consider to have an HMO ‘problem’.

And that, says the Residential Landlords Association, could create ‘no-go HMO zones’.
“The minister has declared his intention to reduce the legislative burden for private sector landlords and he may achieve that at national level,” says RLA lawyer Richard Jones. “But locally this gives local authorities too much additional power.

Unlicensed Fulham landlord hit with £37,000 council bill

A Fulham landlord was ordered to pay back £37,000 after renting out his property without the proper licence reports the Fulham Chronicle.

Rizwan Ahmed rented out a severley run down nine-bedroom house in Fulham Road which had no heating or hot water, dangerous electrics and no floor coverings.

As the property had three floors and was occupied by five or more tenants it was a licensable House in Multiple Occupation (HMO) – a license which Ahmed did not possess.

A Residential Property Tribunal has ordered Ahmed to pay back Hammersmith & Fulham Council a total of £37,404 after they banned him from renting out the property.

He had challenged the council’s decision but his appeal was dismissed.

A council spokesman said: “Ahmed’s tenants lived in putrid conditions and I am thrilled that the tribunal has told him to repay this £37,000.

“This should be a warning to all landlords to make sure their properties are up to a decent standard and that they have the correct paperwork.”

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Local Councils Will Regulate Shared Housing

The coalition Government is ripping up powers introduced by Labour in April requiring anyone letting out houses to three or more people to submit a planning application. The Government will amend existing legislation, which means the changes are expected to come into effect as quickly as the autumn.

Mr Shapps said: “Councils know about local issues with shared homes, and don’t need top-down rules from Whitehall to deal with problems that don’t exist.”

Liz Peace, chief executive of the British Property Federation, said: “Grant Shapps has taken quick and decisive action after this law was rushed through in April without sufficient clarification. At a time when council resource is scarce and housing is needed, it makes no sense to be forcing thousands of local landlords and planning officers to be engaged in unnecessary bureaucracy.

“The minister said last week that deregulation would characterise his approach to the private rented sector and as with other moves to cut red tape, these are further welcome steps.”

Local Councils To Control HMO Regulation

The coalition Government is ripping up powers introduced by Labour in April requiring anyone letting out houses to three or more people to submit a planning application.

Tory housing minister Grant Shapps believes that is too much of an administrative burden on officials as well as landlords so is giving councils powers to target restrictions on problem areas instead.

There have long been calls for more controls after complaints from residents about problems with noise, littering and other antisocial behaviour in areas dominated by student accommodation.

They want a more even spread of houses in multiple occupation (HMOs) and the Government has admitted that a high concentration of shared homes can sometimes cause problems, “especially if too many properties in one area are let to short-term tenants with little stake in the local community”.

Mr Shapps said: “Councils know about local issues with shared homes, and don’t need top-down rules from Whitehall to deal with problems that don’t exist.Where too many shared homes are causing problems for other residents or changing the character of a neighbourhood, councils should be able to control their spread.But I’m not going to create unnecessary costs for landlords, which puts the supply of rented homes at risk.Shared homes ensure people who want to live and work in towns and cities can do so, and are vital to the economy.”

Residential Landlords Association Response to HMO Regulation

The Residential Landlords Association has welcomed today’s announcement (June 17) by Housing Minister Grant Shapps, to change the Planning Use Class regulations introduced by the previous Labour government days before the end of the last parliament.

Says RLA chairman Alan Ward: “The prospect of 8,500 planning applications clogging up the town hall system made a nonsense of landlords’ and tenants’ rights to choose who may live in a house. The measures were ill-considered and would have had a universal effect on the private rented sector when they were trying to control a problem in a limited part of the student market.

“We thank the minister for keeping a pre-election promise and look forward to the consultation process to see how new regulations can be applied appropriately in local circumstances.

“The Residential Landlords Association has consistently argued that the changes were Draconian and endorsed the view of the Rugg report (November 2008) that the problem existed in only 76 of 8,000 council wards. Despite only being in place for a few weeks the impact has been to drop house values for owner occupiers and fossilise markets for shared houses, potentially creating a two-tier market.

“Landlords can once again exercise their right to let to a group of, say, three nurses wanting to share a house, without having to ask permission from the local authority.”

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HMO, House of Multiple Occupation Licensing Explained

An HMO (House of Multple Occupation) License is required for all privately rented properties of three stories or more, and occupied by five or more people.The property must be used as the tenants’ only or main residence;properties let to students and migrant workers are treated as their only or main residence.

HMO’s are a key source of housing for the less well off parts of society such as migrant workers and students, and for societies more vulnerable groups.However, many groups representing likely HMO tenants are not always supportive of the legislation which was designed to improve tenants’ access to satisfactory housing.

The British Property Federation (BPF) and the National Students Unions argue that in some areas, regulations may make it more difficult for tenants to find somewhere to live, as fewer landlords will be willing to let their property as an HMO. The BPF report states “HMOs are not only an important source of accommodation for students, but also for people who are often least able to put a roof over their heads in society.

Placing planning restrictions on this important source of affordable accommodation is something we will be arguing strongly should be resisted because it will restrict supply, raise rents and could be used unscrupulously to restrict particular groups in society to particular areas in towns and cities”

Mandatory licensing of HMOs was introduced in England and came into force in April 2006. The regulations investigate the suitability of the landlord to carry out their role effectively as well as the provision of adequate amenities in the building. The license also limits the number of tenants in the building.

Despite the new regulations HMOs are still considered a relatively safe property investment, even through 2009. Although HMO properties are generally associated with the bottom end of the market, this is not necessarily true in London and other areas of high property value, where they are often let as a house share for young professionals.

The property investor may be happier with the concept of a single more expensive property with professional tenants in, rather than having to manage a number of cheaper properties in less salubrious areas. There is always the option to convert back to a single family residence to realise your investment.

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