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Appeal launched over refusal of plans to increase rooms at Wrexham HMO

An appeal has been launched after a bid to increase the number of bedrooms at a house in multiple occupation (HMO) near Wrexham town centre was turned down.

Landlord Arran Pritchard applied to Wrexham Council in January to up the amount of bedrooms at a property on Poplar Road from six to seven.

However, the local authority issued a decision to reject the proposals after planning officers said there were not enough parking spaces outside.

Mr Pritchard has now submitted an appeal to the Planning Inspectorate in an attempt to have the outcome overturned.

In documents entered to support his case, he claimed most people living in HMOs don’t own a car, meaning the small increase would not cause a problem.

Highlighting a survey of the number of vehicles owned by tenants across the 23 properties he lets in the town, he said: “Here attached are two “vehicles per room” assessments, conducted in September 2015 and May 2016.

“They show that for 146 rooms/ occupants, there are just 17 to 25 occupants with vehicles, or one vehicle for every five rooms.

“This is largely due to all the rooms being in the town centre and tenants generally not being able to afford a vehicle.

“The planning application is to increase the number of rooms by the minimum possible, from six rooms to seven rooms. A comparable planning application, refusal, and successful appeal is the planning case for 33 Park Street, Wrexham.”

Mr Pritchard previously attempted to increase the total number of bedrooms at the property to eight but permission was denied on similar grounds.

Despite appealing the decision on the original application, a planning inspector appointed by the Welsh Government agreed with the council’s views.

In her decision notice, Siân Worden said she felt the proposals would impact on the safety of drivers at a busy junction.

She said: “The appeal property is in a busy area where there are widespread parking restrictions and many of the dwellings do not have off-street parking. There thus appears to be a high demand for on-street spaces.

“The proposed development would result in a small increase in the number of vehicles requiring parking spaces in the vicinity.

“Even so, it would increase the hazard on the local road network, and reduce its efficient use, by resulting in more drivers searching for a parking space.”

Mr Pritchard’s latest appeal will considered at a future date.

By Liam Randall

Source: Wrexham

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HMO Sector To Grow As Investors Expand Property Portfolios

New data released has shown that the HMO sector is likely to grow with over a fifth of landlords planning to expand their portfolio with the addition of an HMO (House in Multiple Occupation).

The HMO sector is proving to be attractive to professional landlords in a time of market uncertainty, with HMO landlords achieving the highest average rental yields at 6.3 per cent compared with the market average of 5.5 per cent.

The research from specialist lender Precise Mortgages shows average rental yields across the market as a whole are at their lowest for nine years, highlighting the attraction of the HMO sector. Average yields for all property types dropped 0.3 per cent in the second quarter from 5.8 per cent in the first quarter of this year and are now at their lowest level since 2010.

Terraced houses are proving to be the most popular choice for buy to let property investors, with 50 per cent of landlords planning to buy a terraced property. However, the research also shows 40 per cent of landlords also plan to sell terraced houses in the year ahead. By contrast, just 8 per cent of landlords holding properties in the HMO sector plan to sell them.

Blocks of flats are also set for growth, with 8 per cent of landlords planning to buy compared with just 5 per cent planning to sell.

Landlords with between 11 and 19 properties are earning the highest average yields at 5.9 per cent with the North West the best area of the UK for yields, earning an average 5.9 per cent. Landlords with 11 or more properties have an average of three different property types in their portfolio.

Managing Director of Precise Mortgages, Alan Cleary, said: ‘In a time of market uncertainty, HMOs are an attractive option for professional landlords looking to maximise yields. As HMOs attract multiple tenancies, gross rental income tends to outstrip single lets meaning the rental income is more secure if one tenant leaves a void.’

He continued: ‘The expansion of the HMO sector underlines how experienced landlords are re-balancing their portfolios. It also demonstrates the opportunity for brokers to work with specialist lenders who have expertise across the widest product set to support clients who are reassessing their portfolios.’

Source: Residential Landlord

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HMO Property Investments Popular As House Sharers Get Older

Buy to let property investors are increasingly looking to HMO property investments as house sharers get older.

The latest data from property sharing platform, ideal flatmate, has looked at the changing face of the house share landscape and how more and more people above the age of 50 are prepared to be house sharers as a viable way of living.

Sharing houses has become a popular choice for many, particularly in major UK cities, where the cost of renting is too high to tackle alone.

House sharers are traditionally young people, with the 18-25 age group accounting for 43 per cent, while another 36 per cent are in the 25-35 age group.

As people become older, they are normally less likely to be house sharers, with 35-45 year-olds making up 13 per cent, 45-55 year-olds 6 per cent, and just 2 per cent of house sharers aged over 55.

However, this trend is starting to change.

just in this year so far Ideal Flatmate has seen an increase of 74 per cent in the number of over 50s using the platform compared to 2018, indicating that the older generation is coming around to the idea of being house sharers.

Co-founder of ideal flatmate, Tom Gatzen, thinks perceptions are starting to change and being house sharers has lost the ‘stigma’ it used to have, as rents continue to climb, and the issue of affordability grows ever larger. He thinks that ‘people of all ages are starting to band together and tackle the rental market in whatever way they can’.

He said: ‘Age is just a number and it’s one that doesn’t seem to hold any bearing what so ever when looking for that ideal flatmate and we expect that the fabric of the UK rental sector will continue to evolve as a result of this diversity and acceptance.’

Buy to let property investors can benefit from this new-found enthusiasm for house sharers with HMO investments that tend to bring higher rental yields.

Source: Residential Landlord

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Help for landlords who struggle to keep up with pace of change

Many landlords in the UK are struggling to keep up with changes to the law that have been introduced over the past year, according to an independent survey.

Some 30 per cent do not understand the changes to House in Multiple Occupation (HMO) licensing, which came into effect in October 2018 and 28 per cent are not aware of the abolition of Section 21, which came into force at the start of June 2019 to prevent unfair tenant evictions.

The survey commissioned by bridging lender Market Financial Solutions, also found that 27 per cent are uncertain about the tenant fees ban, with a further 19 per cent saying they understand the reform but are unsure how it will affect them.

When it some to tax, there was also significant confusion, with the poll showing that 28 per cent do not understand the reforms to inheritance tax that have changed the tax free allowance on properties being passed down and 25 per cent do not know about the reforms affecting tax relief on mortgage repayments, which were implemented in April this year.

The research also found that far more landlords opposed these reforms than supported them.

Some 44 per cent are against the banning of letting fees, compared to 23 per cent in favour, 37 per cent against the abolition of Section 21 with 16 per cent in favour, while 48 per cent are against changes to buy-to-let mortgage relief and 16 per cent for.

Source: Simple Landlords Insurance

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Rogue Carlisle landlords prosecuted for unsafe conditions

Two Carlisle-based rogue landlords have been fined more that £1,000 each following a successful prosecution by Carlisle City Council.

Following a series of unannounced visits to rented premises in November 2018, Carlisle City Council has successfully prosecuted Sait Colak (49) and Erkan Colak (43) – both of 41 Fernlea Way, Carlisle – for offences under the management of a House in Multiple Occupation (HMO) regulations.

The visits backed by warrants from the Magistrates Court were carried out in coordination with the Cumbria Fire and Rescue Service, Cumbria Police and the Immigration, Control and Enforcement Service.

The offences related to poor management and unsafe conditions in the property. The landlords were fined £1,000 each on Wednesday 8 May 2019 by Carlisle Magistrates Court. In addition to the fine, £150 costs and £50 Victim Surcharge were also imposed.

Both Sait Colak and Erkan Colak pleaded guilty (by post) and neither attended the hearing.

Carlisle City Council spokesperson said: “The successful prosecution demonstrates the effectiveness of multi-agency working – a key feature of the Rogue Landlord Project funded by the Controlling Migration Fund. The project targets unlawful activity in the private rented sector with a focus on the Botchergate area and fast food premises.

“All Houses of Multiple Occupation should be properly managed; ensuring the safety and security of the tenants. In addition to this court prosecution, we are also now using the powers under the Housing and Planning Act 2016, to issue civil penalties against landlords. To date we have issued five civil penalties to landlords found to be operating without HMO licences.”

A House in Multiple Occupation is a privately rented property which is shared by more than two individuals and who share facilities such as a bathroom or kitchen. Any HMOs occupied by five or more individuals must be licensed. All HMOs must be managed to ensure the tenants are safe and secure.

 Source: Cumbria Crack
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Plans to turn Rhosddu property into HMO for up to eight people given go ahead on appeal

Plans to convert a terrace property in Rhosddu into a HMO have been allowed on appeal – despite being rejected unanimously by planning committee members.

The application for 33 Park Street proposed that the four bedroom property was turned into five-bedroom house in multiple occupation (HMO) for eight residents.

The plans had been recommended for approval by the head of environment and planning Lawrence Isted, who said he was satisfied that the development “would not result in an over concentration of HMOs in the immediate locality.”

But the plans were were turned down by councillors in January 2019 amid concerns over a lack of parking and amenity space for residents.

Objections had also been raised by several neighbours who fear that tenants would be ‘crammed in’ and may include substance abusers. The council’s highways department said it was also against the scheme because it did not include enough parking spaces.

However planning inspector Clive Nield has now overturned the council’s decision and approved the application on appeal.

In his report Mr Nield says that although there is a lack of parking along Park Street, the proposed HMO “would be in a suitable location for tenants who rely on walking, cycling and public transport”

Addressing concerns about a lack of amenity space, Mr Nield continues onto say: “The council’s Local Planning Guidance Note 5 (Houses in Multiple Occupation) says that HMOs should have a large enough private outdoor area to provide space for external drying areas, cycle parking and bin storage and to provide for the amenity of the future occupiers.

“It goes on to say that for an HMO accommodating 8 tenants it will normally seek a minimum private outdoor area of 32 m2.

“In this case, the space in the back yard of the appeal property is reported to be 27 m2. There is also a small area at the front of the property. However, that is not private space, as required.

“The limited amount of private amenity space available also falls well short of the level normally considered acceptable for a family dwelling and is a feature of this densely developed urban area.

“However, there are public open spaces only a few hundred metres away, and the yard is adequate for clothes drying and the storage of bicycles and bins.

“Whilst it does not fully meet the standard sought by the Council’s Guidance Note 5, I consider this shortcoming to be insufficient reason on its own to justify refusing the proposal.

“I conclude that the private outdoor amenity space provided would be adequate, despite its limited area.”

He also notes that whilst there have been concerns from residents about potential occupiers of the HMO and antisocial behaviour, the “licensing requirements for HMOs also provide an element of control, including a condition that the landlord is held accountable for antisocial behaviour.”

It is the second HMO in the Rhosddu to have been allowed on appeal in the past 12 months.

Grosvenor councillor Marc Jones, said: “This goes against the local planning committee‘s decision and ignores the concerns raised by myself and local residents.

“The inspector claims parking for 8 people would not be any worse than for a family. He also states that being close to public transport makes it less likely that people will need a car. What public transport?!

“He admits that the amenity space is below guidance levels for eight people but says it’s no big deal and it’s limited for a family anyway. There’s a big difference between eight individual people living under one roof and a family in terms of needing outdoor space.

“This is a poor decision by the Planning Inspectorate and confirms my view that local communities do not have enough say in planning matters.”

Source: Wrexham

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Students win rent refund from unlicensed landlord

Five students from Leeds have won a rent refund from their landlord who failed to acquire a House in Multiple Occupation licence (HMO).

Ben Leonard, a postgraduate student, and his four housemates found out their home didn’t have an HMO licence when their landlord applied to Leeds City Council for one halfway through the tenancy.

A HMO must be held by any home occupied by five or more unrelated people who share communal facilities, with at least one tenant paying rent. It confirms the house has the correct safety certificates, that fire alarms are present and working and whoever is in charge of the property is qualified. It also confirms that the landlord does not have a criminal record.

Landlords who don’t have a HMO face fines of up to £30,000, including repaying up to 12 months of rent to their tenants, via a rent repayment order (RRO), which is what happened to Leonard’s landlord.

A housing officer from Leeds City Council informed the tenants that the council was taking action against landlord and explained that they were entitled to seek an RRO.

The tenants made their application, which included evidence of paying rent, bank statements and the tenancy agreement, which was accepted and the landlord was taken to court. He pleaded guilty and, after bills were deducted from the amount owed, as well as a further deduction due to the landlord’s financial situation, each tenant was owed around £2,000.

‘Incredible response’
After winning the case, Leonard told the BBC he received an “incredible” response on Twitter earlier this month. He was inundated with messages from other tenants who felt their landlords might have cases to answer.

The case coincides with the government’s announcement two weeks ago that they plan to repeal Section 21 of the Housing Act (1988), which allows landlords to evict tenants at the end of their fixed-term, and put an end to ‘no-fault’ evictions.

The change in the law would, the government said, “protect tenants from having to make frequent and short notice moves, and will enable them to plan for the future.”

Written by: Max Liu

Source: Your Money

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HMO Investment Key As One Person Households Increase

Many buy to let investors are looking at HMO investment as the number of one person households increases.

Latest data from the Office for National Statistics shows that the number of one person households is continuing to rise, up 16 per cent to 7.7 million over the two decades from 1997 to 2017. This is projected to hit 10.7 million by 2039.

This trend has largely been driven by older age groups and as a result of greater numbers of children born in the 1960s and exacerbated by an increase in singles and divorcees.

The higher cost of living for one person households has also been highlighted, with those doing so spending up to 92 per cent of their income leaving little room to save. The biggest expenditure is housing costs including rent and bills.

Those living alone are also less likely to own their own home and therefore look for rented accommodation.

In addition, living alone also has implications that stretch beyond the financial burden. One person households have the lowest measure of wellbeing of all house hold types.

Whilst rented property can still be expensive for one person households, many are turning towards shared accommodation to help balance the budget and also provide company.

Buy to let investors who can offer quality shared accommodation are likely to reap the benefits the trend towards one person households with higher than average yields.

Co-founder of ideal flatmate, Tom Gatzen, commented: ‘The current cost of living is making it tough for many to get by, but shouldering this financial burden alone makes it all the more difficult.

‘While we are currently seeing an upward trend in single occupant living as a result of a growing population and social factors such as an increase in divorce rates, we are also seeing a similar increase across other living habits such as co-living.

‘While living alone is more prevalent across older age groups, we’re seeing a growing preference amongst younger generations to live in share households. This is not only helping them to address the financial issues head on but can also help with other disadvantages associated with living alone such as a lower level of wellbeing.

‘If properly considered and developed, this lifestyle trend could go some way in addressing the predicted uplift in those living alone over the next two decades and the negative impact that this could have on this segment of the population.’

Soruce: Residential Landlord

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Landlords face stricter rules over property cleanliness

Landlords in Glasgow are facing stricter rules on how they operate their properties.

The new regulations are aimed at curbing the impact that houses of multiple occupancy (HMO) can have on communities.

The conditions, which cover cleansing issues, repairs to common property and dealing with neighbour complaints, have come into effect following a review by Glasgow City Council’s Licensing and Regulatory Committee.

The review identified concerns linked to the presence of HMOs in neighbourhoods across the city, particularly where there are high concentrations of this type of rental property.

High levels of refuse from HMOs being left in back courts and lanes has been a common complaint to the Council, with a surge in bulk waste being dumped at the end of the academic year also being raised as a recurring problem.

William Beckett, Garnethill Neighbourhood Watch, has welcomed the changes after a landlord in area was penalised repeatedly for the rubbish left in his back court.

William Beckett, said: “I hope this is enough to stop it and I just hope that all landlords take heed of the new conditions.

“It gives them more power as well with their tenants to say look this has got to stop, these are the new rules, you’ve got to comply with these conditions, failing that then you’ll have to leave.”

Public consultation feedback also focused on difficulties with securing support from HMO landlords for repairs and maintenance to common parts of flats.

How to deal with noise and other anti-social behaviour was also flagged as a source of on-going disputes.

Councillor Alex Wilson, Chair of the Licensing and Regulatory Committee, said that striking a balance between the needs of neighbourhoods, residents, HMO tenants and landlords was essential.

He said: “I’m hoping to see a massive difference in the number of complaints that we get especially from community councils which is where the majority of complaints do come from.

“I would like to think that if there is an example to be set then hopefully the private rented sector will see the same changes, everyone will benefit.”

The new conditions for HMOs will cover:- general refuse ; maintenance, insurance and repairs of common areas; bulk refuse; neighbouring residents and statutory notices.

All of these conditions will be incorporated into a new code of conduct, which will apply to all HMO licence holders.

As part of the new conditions, a pilot project will be operated through the cleansing service provided by the council’s Neighbourhoods and Sustainability department.

The pilot will involve landlords notifying the council in advance of flats being cleared of items at the beginning or end or the academic year to ensure bulk waste is reported for collection.

By Susan Ripoll

Source: STV

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Glasgow to introduce stricter licensing conditions to curb impact of HMOs

Landlords in Glasgow are facing stricter new conditions on how they operate their property as part of an effort to curb the impact that houses of multiple occupancy (HMO) can have on communities.

The conditions, which cover cleansing issues, repairs to common property and dealing with neighbour complaints, will come into effect following a review of HMO licensing by Glasgow City Council’s licensing and regulatory committee.

The review identified many concerns linked to the presence of HMOs in neighbourhoods across the city, particularly where there are high concentrations of this type of rental property.

High levels of refuse from HMOs being left in back courts and lanes is a common complaint with a surge in bulk waste being dumped at the end of the academic year also being raised as a recurring problem. Public consultation feedback also focused on difficulties with securing support from HMO landlords for repairs and maintenance to common parts of flatted property. How to deal with noise and other anti-social behaviour was also flagged as a source of on-going disputes.

While it was found there is no legal basis for a cap on the number of HMO licences issued within Glasgow, the review reiterated that the purpose of HMO licensing is to protect public safety. The review conclude that better management of HMOs was a practical way forward.

Councillor Alex Wilson, chair of the licensing and regulatory committee, said that striking a balance between the needs of neighbourhoods, residents, HMO tenants and landlords was essential.

Councillor Wilson said: “It is clear there is a strong depth of feeling about how HMOs operate in the city. There is a range of issues that are regularly brought before members of the committee and we know that the way HMOs are sometimes managed cause real problems to other residents.

“But the public safety purpose of the HMO system should not be put to one side. HMOs provide homes of a reliable standard for people who cannot otherwise afford to live independently and that’s a system we support.

“The advice we have received means there is not a legally defensible way to limit how many HMOs there in Glasgow as there is a continuing need for kind of accommodation. So focusing on what really bothers people about the way property is managed is the way to deal with this.

“Indiscriminate dumping of rubbish, refusing to pull your weight with the cost of repairs, failing to get a grip with noisy or anti-social tenants – these are the issues that upset other residents. By creating conditions of licence that focus on the issues of concern we are setting out very clearly the standards we expect of our HMO landlords. The conditions will help to ensure we can take a more robust approach with licence holders who do not meet expected standards.”

The new conditions for HMOs will cover: general refuse; maintenance, insurance and repairs of common areas; bulk refuse; neighbouring residents and statutory notices. All of these conditions will be incorporated into a new code of conduct, which will apply to all HMO licence holders.

As part of the new conditions, a pilot project will be operated through the cleansing service provided by the council’s Neighbourhoods and Sustainability department. The pilot will involve landlords notifying the council in advance of flats being cleared of items at the beginning or end or the academic year to ensure bulk waste is reported for collection.

The review also found that it would not be appropriate to use planning policy objectives to limit HMO residences to over-ride a licensing system intended to protect public safety.

Source: Scottish Housing News