From the 1st October 2018 the regulations of what properties required HMO Licences went through a significant change, many of which Landlords are unaware of and how these will affect both their current portfolio of properties and any new possible purchases.
What were the changes to HMO mandatory licencing regulations?
The new HMO regulations have removed the previous 3-storey requirement which means all properties will fall within the mandatory licensing regime if:
In addition to mandatory licencing there are two further common types of licencing:
What are the impacts of these HMO regulations?
The new regulations will now mean that over 177,000 additional properties will now require mandatory licences. Landlords owning these properties may not be aware of the new HMO regulations, but if they have not registered their property and obtained their HMO Licence, they could face a substantial fines of up to £30,000 from the council and their tenants reclaiming the rental income paid to the Landlord back as far as 1st October 2018.
These Landlords will face higher costs due to the requirement of mandatory licence, additional improvements the property may require to meet licencing standards and the possibility of a lower income if the room sizes do not meet the minimum requirements.
How can brokers assist Landlords?
To assist their landlord clients the broker should be checking the following:
If you have a HMO case that you are looking to place with us and need some help then visit our FAQ page or call us on 0345 148 9086 to speak with one of our internal business managers.