Further Growth Predicted For HMO Sector

Data from lender, Precise Mortgages, has revealed that over a fifth of landlords are planning to expand their portfolio with the addition of an HMO (Houses in Multiple Occupation). HMOs are proving to be an attractive proposition in a time of market uncertainty, with HMO landlords achieving the highest average rental yields at 6.3% compared with the market average of 5.5%. The research shows average rental yields across the market as a whole are at their lowest for nine years. Average yields for all property types dropped 0.3% in Q2 from 5.8% in the first quarter of this year and are now at their lowest level since 2010. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/finance/further-growth-predicted-for-hmo-sector.html

Nearly 17,000 Applications Over First Year Of PRS Improvement Scheme

Just over a year ago, Nottingham city council introduced a new housing licensing scheme to help tackle issues such as antisocial behaviour to poor property conditions – and it has seen nearly 17,000 applications so far. “This scheme has already helped to improve rented properties across the city, and it is important that landlords get the homes they own licensed and work with the council to help improve renting standards in the city and make lives better for tenants living in these homes,” said Cllr Linda Woodings, council portfolio holder for planning, housing and heritage. The scheme runs alongside the other licensing initiatives schemes operating for HMOs. Read more on 24housing.

https://www.24housing.co.uk/news/nearly-17000-applications-over-first-year-of-prs-improvement-scheme/

Landlords ‘Struggling’ To Keep Up With Reforms

New research shows many landlords are struggling to keep up with new legislative and regulatory reforms introduced over the past year. An independent survey of 400 landlords found 30% do not understand the changes to House in Multiple Occupation (HMO) licencing and 28% were unaware of the abolition of Section 21. 27% said they do not understand the tenant fees ban (June 2019) or how it may affect them. A quarter (25%) said they were not up to date with the latest changes to reduce tax relief on Buy To Let mortgage repayments. Read more on 24housing.

https://www.24housing.co.uk/news/survey-shows-landlords-struggling-to-keep-up-with-reforms/

Shared Home Tenants 'May Face Rent Rises Or Eviction'

Tenants living in shared houses in England could face eviction or increases in rent because of changes to government rules, the National Landlords Association (NLA) has warned. From 1 October an extra 160,000 houses of multiple occupancy (HMOs) have to be registered with local councils, almost triple the current figure. The Tenants Union said any increases in rent would be unfair on tenants. The government said the new rules would raise housing standards for tenants. HMOs are homes where people, who are not related, sleep in separate rooms but share facilities such as kitchens or bathrooms. Read more on the BBC website.

https://www.bbc.co.uk/news/uk-england-45641216

Mandatory HMO Licensing Changes Happening On 1st October

Changes to mandatory HMO licensing will come into force on the 1st October. The changes will remove the three storey rule. Currently, mandatory licensing applies to HMOs of at least three storeys and five occupants comprising of two or more-family units. The regulations also bring purpose-built flats where there are up to two flats in the block, into the scope of mandatory licensing. Properties will be subject to mandatory licensing if they meet certain criteria, such as the property is occupied by five or more persons. Read more on the NLA website.

https://landlords.org.uk/news-campaigns/news/final-countdown-mandatory-hmo-licensing-changes-happening-on-1st-october

Slum Landlords Can Be Prosecuted From Next Month

Landlords who rent properties to multiple tenants face tough new licensing rules designed to protect tenants from next month.  HMO licensing already applies to landlords who rent their properties to five or more tenants from two or more different households where the property is three or more storeys. But from 1 October, any property let to five or more tenants from two or more households will be caught by the rules - regardless of the number of floors.  It means that 177,000 landlords across the UK will have to meet new minimum standards on room size and safety or face fines up to £30,000 and even criminal prosecution. Read more on the This is Money website.

https://www.thisismoney.co.uk/money/buytolet/article-6063461/HMOS.html

New HMO Rules Come Into Effect In England On 1 October 2018

New regulations to bring mandatory licensing to all multi-occupied properties where there are five or more people, forming two or more separate households. The main change is:

·         Altered definition of an HMO under the Housing Act 2004: for licensing purposes, from 1/10, an HMO will be any property occupied by five or more people, forming two or more separate households.

This contrasts with the existing HMO definition which is a property occupied by 5 or more people, forming two or more separate households and comprising three or more storeys.

Read more on the RICS website.

http://www.rics.org/uk/news/news-insight/news/new-hmo-rules-come-into-effect-in-england-on-1-october-2018/

Minimum Room Size Plans ‘Fundamentally Flawed’

The Government’s impact assessment into plans to introduce minimum room sizes are ‘fundamentally flawed’, with the RLA warning that unless the shortcomings are addressed the regulations are open to challenge by judicial review. As of October this year, a national minimum bedroom size will be introduced for all licensed HMOs, in a bit to tackle overcrowding, with councils required to stipulate how many people can sleep in each room. However, the RLA believes decisions have been made based on inaccurate information – and that little consideration has been given to the negative impact the changes will have on tenants, landlords and the sector as a whole. Read more on the RLA website.

https://news.rla.org.uk/rla-writes-to-mhclg-over-licensing-of-hmos/

Council Looks To Increase Number Of HMOs

Current HMO planning laws allow properties to be converted to house from three to six unrelated people. Planning policies introduced to manage the growth in HMOs have been associated with issues such as parking and noise control. Northampton Borough Council are looking to update this policy to allow more HMOs in the area, to provide accommodation for key workers and students, and has appointed Loughborough University to carry out a study across the borough. Read more on 24housing.

http://www.24housing.co.uk/news/council-looks-to-increase-number-of-hmos/

Councils Given New Powers To Fine HMO Rogue Landlords

Under measures laid before parliament, local authorities will be allowed to set new standards for Houses in Multiple Occupation (HMOs) and fine rogue landlords up to £30,000 if they fail to comply. Town halls will be able to set minimum bedroom size standards and impose limits on how many people can live in each bedroom of a licensed HMO. Landlords will also need to provide adequate waste storage facilities in line with council rules. The new measures will come into force from October and will apply to all landlords seeking new HMO licenses. Read more on Inside Housing.

https://webcache.googleusercontent.com/search?q=cache:pReeXYujIRYJ:https://www.insidehousing.co.uk/home/home/councils-given-new-powers-to-fine-hmo-rogue-landlords-55337+&cd=1&hl=en&ct=clnk&gl=uk&safe=vss

Mandatory HMO Licensing Extension To Commence In October

Regulations laid in Parliament confirm that the long-awaited extension of Mandatory HMO Licensing will come into force from 1st October 2018. The regulations replace the previous prescribed description of HMO, removing the three-storey rule and bringing purpose built flats where there are up to two flats in the block into scope of mandatory licensing. From 1st October, properties that meet all of the following criteria will be subject to mandatory licensing:

·         is occupied by five or more persons;

·         is occupied by persons living in two or more separate households; and

meets—

·         the standard test under section 254(2) of the Act;

·         the self-contained flat test under section 254(3) of the Act

·         the converted building test under section 254(4) of the Act.

Read more on the NLA website.

https://www.landlords.org.uk/news-campaigns/news/mandatory-hmo-licensing-extension-commence-in-october

New HMO Licensing Rules Expected In October

The Government is planning to introduce new rules on licensing Houses in Multiple Occupation (HMOs) this October, the Housing Minister, Dominic Raab, has confirmed. The Government set out its proposals to extend HMO licensing last year, involving mandatory licensing for properties, regardless of height, that are occupied by five or more people from two or more households. Currently, mandatory HMO licensing only applies to properties with three or more storeys that are occupied by five or more people from two or more households. The new rules still have to be approved by Parliament. However, in response to a written question by Liberal Democrat MP Wera Hobhouse, Raab set out a timetable for their introduction. Read more on the Landlord News website.

https://landlordnews.co.uk/new-hmo-licensing-rules-october/

Private Rented Housing: Licensing – Parliamentary Written Answer

Wera Hobhouse: To ask the Secretary of State for Housing, Communities and Local Government, whether the Government plans to extend mandatory licencing schemes for landlords in the private rented sector.

Dominic Raab: [Holding answer 18 January 2018]: The Government proposes to extend the scope of mandatory houses in multiple occupation (HMO) licensing, so that a licence is required for HMOs with five or more occupiers. We published our response to our HMO reforms consultation in December 2017, and we plan to lay the necessary regulations before Parliament shortly with a view to bringing them into force (subject to approval) in October 2018.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2018-01-15/122708

Government Confirms Extension Of Mandatory HMO Licensing

The Government has announced that it will be seeking Parliament’s approval on regulations to

extend the scope of mandatory HMO licensing:

·         It will apply where certain HMOs are occupied by five persons or more in two or more households

·         This includes any HMO where such householders lack or share basic amenities such as a toilet, personal washing or cooking facilities.

·         It also applies to purpose built flats where there are up to two flats in the block and one or both are occupied as an HMO.

·         The new rules will be introduced in two phases. Most likely, the regulations will come into force in April 2018.

Read more on the NLA website.

Rogue Landlords Targeted By Government

Rogue landlords are the target of new measures being considered by both the government and Labour. The government says landlords in England who want to rent a property to five or more people, from at least two different families, should be licensed. Under the plan, the maximum number of people who can occupy a room would be specified in the property's licence. There are about 4.3 million households in the private rented sector in England. About 500,000 are houses in multiple occupation. Read more on the BBC website.

Council’s Selective Licensing Renewal Approved

Newham Council’s application to renew its borough-wide selective licensing scheme has been approved by the Communities Secretary, Sajid Javid MP. The Council has confirmed the approval in its publication of the Designation of an area for Selective Licensing. Any privately rented property within the designated area, that is not already covered by mandatory HMO licensing or the additional HMO licensing scheme, will need to be licensed. Earlier this year Newham Council consulted on plans to renew their borough-wide selective licensing scheme, and subsequently agreed to go ahead with the renewal in June. You can read the NLA's response to that consultation here. Read more on the NLA website.

Two More Selective Licensing Consultations

A year after their first licensing consultation and only a month after their second, Manchester City Council have started another Selective Licensing Consultation. Selective Licensing applies to all private rented sector houses that are not licensed under HMO licensing. An area may be designated for selective licensing either (i) if the area is (or is likely to be) an area of low housing demand or (ii) the area is experiencing a significant and persistent problem caused by anti social behaviour that local authorities attribute to private sector landlords failing to take action to combat against unruly tenants. The holders of the licence will be required to comply with licensing conditions, some of which are mandatorily imposed by the Housing Act, and local licensing conditions from the council itself.  Read more on the RLA website.

Buy-To-Let Investors Targeting Smaller, Cheaper Properties

A new report from Mortgages for Business has analysed buy-to-let purchase activity during the first three months of the year. Data from the investigation suggests that investors are purchasing smaller and less expensive properties. The lender says that average loan amount and security values fell for all property types, with figures for ‘vanilla’ properties well down on those seen over the last year. In addition, the opening quarter of the year saw a shift in the buy-to-let market, from remortgaging to purchasing. This was particularly strong amongst more complex property types, such as HMOs, multi-unit freehold blocks and semi-commercial property. Read more on the Landlord News website.

Councils Combat HMO Conversion Scam

A housing benefit scam forcing people to live in poor and dangerous accommodation needs shutting down and more rogue landlords should be jailed, councils urge. The Local Government Association (LGA) is calling on government to close a legal loophole which allows landlords to convert properties into multiple tiny “units” which are marketed as self-contained flats in order to secure the maximum level of housing benefit payments. The loophole abuses legal exemptions and the lack of clarity in environmental health, planning and housing benefit rules to avoid detection and is resulting in widespread abuse of taxpayers’ money, as well as housing tenants in poor and often dangerous accommodation. Read more on 24housing.

New Changes To HMO Licensing

The government is extending mandatory licensing for houses in multiple occupation so 870,000 additional private tenants have extra protection from rogue landlords, including through minimum space standards. It is also consulting on further changes to improve the level of protection they get. The announcement last week that the government is consulting on a swathe of changes to mandatory licensing is worth getting excited about. Not only do the proposals stand to give almost a million more tenants the protection of living in a licensed property, they are also likely to enhance the quality of that protection with new space standards and a raft of other proposals. Read more on the Shelter blog.