Landlords criticise HMO licensing regime differences

Landlords have criticised the differences in approach taken by local authorities in enforcing the houses in multiple occupation licensing rules introduced in England and Wales in July. A survey by website residentiallandlord.co.uk found that fees for licensing varied between £150 in the Isles of Scilly to £1,750 in Dartford with an average of £515. This they claim could deter landlords from investing in the buy to let HMO market reducing supply of accommodation and choice for renters. 

Karl Hopkins of residential landlord commented “introduction of HMO licensing was supposed to combat the problem caused by a tiny minority of "rogue landlords", it rather looks as if the government now needs to do something to stop "rogue councils" fleecing landlords by charging well over the odds. Inevitably either landlords are going to shy away from HMO properties, making this type of let harder to find, or the costs will be passed to tenants - probably both.”

Dartford Council defended their high prices saying that they dealt with few licences so their costs were high and they did not wish to pass on the costs to council tax payers. Landlords have also expressed concerns over the fact that some councils charge on a per landlord basis whilst others charge per property, some councils offer licences for five years whilst others only offer three or one year licences and also that councils vary in their surcharge regime for landlords who have failed to obtain a licence. 

Nick Goble of estate agent Winkworth who works in an office dealing with four London boroughs commented “the procedure and enforcement of HMO licences is completely different from council to council: different guidelines, different timelines, different criteria emphasised by each, and different ways of ensuring compliance. It has left landlords, many of whom are average punters saving for retirement, in a state of confusion.” Despite the criticisms many landlords are still in favour of the licensing as they believe over the longer term it will stamp out bad landlords.

Observer 24/09/2006