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HMO plans for “eyesore” office space in Wrexham

“Dilapidated” and “eyesore” office space in Wrexham could soon be converted into a HMO.

In an application submitted to Wrexham Council it has been proposed that the disused office space at Unit C on Maesgwyn Road is converted into a six bedroomed House Multiple Occupancy.

Previously the offices were home to the Wrexham tram depot before being used as a bus depot. In recent years it has been used as a garage and repair shop. However they have since been vacant for a number of years and have been subject to vandalism.

As a result the applicants state that the aim of the plans is to “ensure this vacant unit can become usable”, with office space located at the front of the building proposed for HMO use.

Documents submitted to Wrexham Council show that the office space on the ground floor would be used for an open plan kitchen, dining and living area, along with a separate kitchenette, bathroom and one bedroom with living area.

A further five bedrooms, two of which would have living areas, two bathrooms and a landing would be located on the first floor.

Further details in the application’s design and access statement adds that the proposed conversion would be “sympathetic to the existing structure”, with the removal / replacement of windows and the creation of a new opening proposed to provide bin storage for the exterior of the building.

The design and access statement concludes: “We feel this planning application should be looked favourably upon as the intention to provide additional accommodation within the town centre ideally suited to young professional’s seeking work or employment in the area.

“The building is prominent to existing dwellings and is currently in a dilapidated state where vandals have targeted windows and walls within the building.

“At present the building is an eyesore to local residents, by allowing this conversion to take place the building will be revamped and be a secure building ensuring vandalism won’t occur.

“By allowing us to convert the existing offices to provide a HMO we are retaining the existing characteristics of the building, reducing its impact on the current parking arrangements and ensuring parking issues aren’t magnified should the unit be refurbished as an office.”

The application will be considered for approval at a later date.

Source: Wrexham

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Changes In Landlord Legislation For This Year

There are some years which seem to be dominated by changes in landlord legislation and 2018 seems to be one of those years. Some of these have been talked about for a long time and landlords have had time to prepare, but others seem to have been sneaked in. The main landlord legislation changes are listed below.

Energy Efficiency Standards                                                                                                                                        

From 1st April 2018 properties that are rented out in the private rented sector will need a minimum energy performance rating of E on an EPC certificate. The new rules cover all new lets from that date and will be extended to all tenancies from 1st April 2020.

HMO room size regulations

Research has found that 16 per cent of landlords rent to people in HMOs, and though some has been to a reasonable size standard, it is this portion of the sector that has been seen in the past to have the poorest size standards, so legislation that will improve this is to be welcomed.

From October 2018, a minimum space standard will be introduced for bedrooms in Houses in Multiple Occupation. Rooms to accommodate one person must be a minimum of 6.51 square metres; for 2 persons, it must be a minimum of 10.22 square metres; rooms to accommodate a child under 10 years old must be at least 4.64 square metres.

The HMO licence must specify the maximum number of people resident in the property. Landlords who do not comply with the new requirements could face a fine of £30,000, though landlords of existing properties will have 18 months to make any changes to allow compliance.

GDPR

From 25th May, General Data Protection Regulations will be introduced to replace the Data Protection Act. From that date, landlords will have to ensure that their businesses are GDPR compliant. A data protection policy is needed, together with a privacy notice for customers. A new change is that registering with the Information Commissioners Office will become a statutory requirement.

Extension of mandatory HMO licensing

An extension of mandatory HMO licensing will come into force from 1st October 2018. The reason will always be that this will raise standards, but the private landlord’s view will be that it is the revenue it raises that be of most concern to the local authority.

Banning Orders                                                                                                                                                              

Banning orders will be introduced on 6th April with the intention of tackling criminal landlords and agents. The Housing and Planning Act 2016 introduced banning orders; an individual convicted of certain offences can be barred from renting out properties for a minimum of one year. Could the penalties be avoided by transferring ownership to a partner? However, the changes will now impact all tenancies, including those that were established BEFORE 1st October 2015.

Extension of Section 21                                                                                                                                                    

October sees the extension of Section 21 which were implemented by the Deregulation Act. Section 21 was changed and applied to all tenancies or renewals that started on or after October 1st, 2015.

All landlords are legally required to supply their tenants with the ‘prescribed documents’ of gas safety certificate, tenancy deposit protection information, energy performance certificate, tenancy agreement and the government document ‘How to Rent’ before the start of the tenancy. As this has been required procedure for some time, it seems unnecessary to further legislate.

Gas Safety                                                                                                                                                             

There will be some flexibility for Landlords around dates of annual gas safety checks.

Landlords will be able to make compulsory checks any time in the two months leading up to the renewal date. This means that, if the check was due on May 31, the check could be carried out any time in April or May and still retains the 31st May renewal date for future renewals. This may be helpful for landlords who find it more convenient to have their full portfolio of property checked at the same time.

In summary, there is plenty of landlord legislation changes for private landlords to think about this year and some will struggle to keep out of trouble. Check with local authority accreditation schemes and landlord associations for any training that is available to ensure that you are able to implement any landlord legislation changes required, and your reputation as a landlord remains unblemished.

Source: Residential Landlord

High Court
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High Court ruling counts children as residents in HMOs

The High Court has confirmed that children under the age of 18 are ‘residents’ for planning purposes when calculating the total number of residents in a Class C4 HMO.

Paramaguru v London Borough of Ealing

In the case of Paramaguru v London Borough of Ealing, Mr Justice Supperstone was asked by local landlord Sinnathurai Paramaguru to rule on the judgement made by Ealing Magistrates Court that children up to 18 years of age can be classified as residents under the jurisdiction of Class C4 of the Schedule to the Town and Country Planning (Use Classes Order) 1987, and whether the magistrates had jurisdiction to state a case.

The court also charged Mr Paramaguru with one offence of breaching a planning enforcement notice contrary to section 179(2) of the Town and Country Planning Act 1990 which required him to cease the use of his property as a Class C4 HMO.

Following this ruling by the magistrates’, Mr Paramaguru entered a guilty plea, where the case was subsequently referred to Isleworth Crown Court under section 70 of the proceeds of crime act 2002, where confiscation proceedings and furthering sentencing will be put to consideration, however the hearing has been adjourned pending the outcome of the appeal.

In his judgement, Justice Supperstone ruled that the magistrates were correct in their ruling that children under 18 count as ‘residents’ in these circumstances, agreeing with magistrates concerns of uncertainty, outlined in paragraph 7 of the case: “We strongly believe that Parliament did not intend to create a situation where you could have a property, for example the property we are dealing with, to have six adults and 40 children and still be within the law. If we were to find that children do not count that situation would be possible.”

Continuing his ruling, Justice Supperstone argued that a ruling to the contrary position would introduce uncertainty in regards to local authority control of HMO’s, which are “likely to be made more difficult through the introduction of uncertainty… if they have to assess whether children are ‘young’ or ‘very young’.”

Read the full case hearing here.

Planning Changes

Since 2010 in England the introduction of the C4 Planning Use Class for small HMOs has meant that letting a house or flat to two or more households has represented a material change of use – technically requiring planning permission. Fortunately this is covered by general permitted development meaning that no application is required.

However, local authorities can designate an Article 4 Direction removing all permitted development rights, and subsequently require landlords to apply for planning permission before letting to sharers instead of a single household or family.

Applications for planning permission in Article 4 areas had been free, but due to recent changes a landlord may now have to pay a fee (increased to £462.00) for applying for a change of use in an area where permitted development has been withdrawn.

This change encourages local authorities to remove permitted development so they can gather a fee from landlords.

The Government is also strengthening the rules surrounding HMO standards and licensing for children, with Housing Minister Heather Wheeler introducing new measures effective in October that will dictate minimum room sizes, with rooms slept in by children 10 years or younger to be no smaller than 4.64 square metres.

Read more about the extension of mandatory HMO licensing here.

 Source: Landlords
mandatory HMO licensing
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Extension of mandatory HMO licensing set for October 2018

The Government has confirmed that the extension of mandatory HMO licensing is due to come into force form 1st October 2018, subject to Parliamentary approval.

The regulations bring purpose built flats where there are up to two flats in the block, into the scope of mandatory licensing. They also remove the three storey rule -at present mandatory licensing applies to HMOs of at least three storeys and five occupants comprising of two or more family units.

How will it affect me?

Research from RLA PEARL has found that 16% of landlords rent to people in HMOs.  It is estimated that an additional 177,000 HMOs will become subject to mandatory licensing in England as a result of this extension.

Properties will be subject to mandatory licensing if they meet the following criteria:

  • It 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 but is not a purpose-built flat situated in a block comprising three or more self-contained flats; or
    • the converted building test under section 254(4) of the Act.

The Order, which can be read here applies to HMOs in England, but does not apply to converted blocks of flats, to which section 257 of the Act applies. These are buildings that have been converted into and consist of self-contained flats where the building work undertaken in connection with the conversion did not comply with the appropriate building standards and still does not comply with them, and less than two-thirds of the self-contained flats are owner-occupied.

Six month grace period

There would be a grace period of six months to give landlords time to comply and local authorities time to process licences.

The RLA believes many of the changes are unnecessary and says they will put a huge strain on local authorities. The Association made its points in its formal response to the Government consultation.

Source: RLA

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New HMO Regulations for Mandatory Licensing – Effective 1st Oct 2018

Statutory Instruments
2018 No. 221

Housing, England
The Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018

Made

20th February 2018

Laid before Parliament

23rd February 2018

Coming into force

1st October 2018

The Secretary of State makes the following Order in exercise of the powers conferred by sections 55(3) and 250(2)(a) and (b) of the Housing Act 2004(1).
Citation and Commencement

1.—(1) This Order may be cited as the Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018.

(2) This Order comes into force on 1st October 2018.
Application

2. This Order applies in relation to an HMO in England(2).
Interpretation

3. In this Order “the Act” means the Housing Act 2004.
Description of HMOs prescribed by the Secretary of State

4. An HMO is of a prescribed description for the purpose of section 55(2)(a) of the Act if it—

(a)is occupied by five or more persons;

(b)is occupied by persons living in two or more separate households; and

(c)meets—

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

(ii)the self-contained flat test under section 254(3) of the Act but is not a purpose-built flat situated in a block comprising three or more self-contained flats; or

(iii)the converted building test under section 254(4) of the Act.
Transitional Provision

5.—(1) A licence issued under Part 3 of the Act has effect as if issued under Part 2 of the Act in respect of an HMO that—

(a)is licensed under Part 3 prior to 1st October 2018, and

(b)is required to be licensed under Part 2 from that date.
Revocation

6. The Licensing of Houses in Multiple Occupation (Prescribed Descriptions) (England) Order 2006(3) is revoked.
Review

7.—(1) The Secretary of State must from time to time—

(a)carry out a review of the regulatory provision contained in this Order, and

(b)publish a report setting out the conclusions of the review.

(2) The first report must be published before 6th April 2023.

(3) Subsequent reports must be published at intervals not exceeding five years.

(4) Section 30(4) of the Small Business, Enterprise and Employment Act 2015 requires that a report published under this article must, in particular—

(a)set out the objectives intended to be achieved by the regulatory provision referred to in paragraph 1(a),

(b)assess the extent to which those objectives are achieved,

(c)assess whether those objectives remain appropriate, and

(d)if those objectives remain appropriate, assess the extent to which they could be achieved in another way which involves less onerous regulatory provision.

(5) In this article, “regulatory provision” has the same meaning as in sections 28 to 32 of the Small Business, Enterprise and Employment Act 2015(4).

Signed by authority of the Secretary of State for Housing, Communities and Local Government

Heather Wheeler

Parliamentary Under Secretary of State

Ministry of Housing, Communities and Local Government

20th February 2018

EXPLANATORY NOTE

(This note is not part of the Order)

This Order prescribes a description of a house in multiple occupation (“HMO”) to which Part 2 of the Housing Act 2004 (“the Act”) applies. Under section 61(1) of the Act every HMO to which Part 2 of the Act applies must be licensed unless it is subject to either a temporary exemption notice under section 62 of the Act or an interim or final management order under Chapter 1 of Part 4 of the Act.

The Order applies to HMOs in England but does not apply to converted blocks of flats, to which section 257 of the Act applies. These are buildings that have been converted into and consist of self-contained flats where the building work undertaken in connection with the conversion did not comply with the appropriate building standards and still does not comply with them, and less than two-thirds of the self-contained flats are owner-occupied.

Article 1 makes a commencement provision.

Article 4 prescribes a description of HMOs for the purpose of section 55(2)(a) of the Act. The standard test relates to HMOs which comprise of one or more units of living accommodation which do not consist of a self-contained flat or flats. The self-contained flat test relates to HMOs which comprise of a self-contained, purpose-built flat situated in a block comprising of no more than two self- contained flats (whether or not the block also contains non-residential premises). The converted building test relates to HMOs which are converted buildings.

Article 5 makes a transitional provision.

Article 6 revokes The Licensing of Houses in Multiple Occupation (Prescribed Descriptions) (England) Order 2006 which this Order replaces.

Article 7 makes provision for the review of these Regulations at the end of the period of 5 years beginning with the date on which they come into force.

An impact assessment has been prepared in relation to this Order. The assessment will be placed in the Library of each House of Parliament and made available on www.gov.uk. Copies may be obtained from the Ministry of Housing, Communities and Local Government, 2 Marsham Street, London, SW1P 4DF.
(1)

2004 c.34. For the definition of appropriate national authority see section 261(1) of the Act.
(2)

For the meaning of HMO see sections 77 and 254 to 259 of the Act.
(3)

S.I 2006/371
(4)

2015 c. 26. See section 32.

 

Source: Legislation.gov.uk

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Overturned: council’s ban on hotel being converted into HMO

A COUNCIL ban on a hotel being converted into an HMO has been overturned.

Last year Bournemouth council turned down a bid to convert Earlham Lodge, at 91 Alumhurst Road, Bournemouth, into an HMO (house in multiple occupation), claiming it could damage Alum Chine’s reputation as a tourist destination.

However the applicant has now successfully appealed the decision, and the council will have to pay the costs.

Planning inspector Andy Harwood’s report states: “I have no evidence that the balance of the community will be harmed by the HMO.

“In relation to the main issue, the HMO has an acceptable impact upon the character of the surrounding area and its tourism function.”

He was critical of the council’s submission describing the tourism offer in the Alum Chine area.

The borough said according to the most recent figures, 22 per cent of visitors to Alum Chine beach during the summer of 2015 were staying overnight in Bournemouth, 50 per cent in hotels and 29 per cent in self-catering accommodation.

However the inspector said there was no evidence these people were staying in Alum Chine.

“It is not clear how the holiday accommodation is distributed or to what degree those properties are separated by residential accommodation,” he said.

“It is possible that some of these properties could involve use of rooms within dwellings rather than being solely holiday accommodation.

“The evidence is not precise or detailed.

“It is not presented in a form that helps me understand the geographical distribution of the holiday accommodation.

“From what I saw at my site visit, the largely suburban residential character of the area around the site does not appear to include a noticeably high concentration of properties that are clearly in use for holiday accommodation.”

Bournemouth council has already approved, in 2016, plans to convert the building to holiday flats, and recently agreed to drop a condition so the flats can also be used for accommodation.

The HMO bid last year attracted five letters of objection from nearby residents, chiefly expressing their concerns about potential noise, the loss of the tourist facility and the setting of a precedent for HMOs in the area.

Source: Bournemouth Echo

Additional Licensing
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Additional Licensing proposal in Bristol

The council proposes to introduce an Additional Licensing scheme for houses in multiple occupation across Bristol City.  Specifically 12 wards that make up central Bristol – Ashley, Bishopston & Ashley Down, Central, Clifton, Clifton Down, Cotham, Easton, Hotwells & Harbourside, Lawrence Hill, Redland, Southville and Windmill Hill – with the aim to improve poor management and poor housing conditions.

The Proposed Additional will capture most HMO’s that are not defined as HMO’s under the expected Mandatory Licensing regulations expected in April.

It would apply to all private rented houses or flats in this area that are let to three or more people who aren’t related and who share some facilities, like kitchens or bathrooms.

Landlords would need to apply for a licence and meet licensing conditions.

The basic proposed licence fee under this scheme without any discounts, would be £1,660, valid for up to five years. With discounts (early application/proof of in date & satisfactory Gas, Electrical & EPC Certificates and membership of an approved West of England Rent with Confidence scheme) the licence fee would be reduced to £885. For renewals this would be £785.

Further information about this proposal can be accessed by clicking here.

“Rob Crawford, Chairman for the Association of Local Landlords (Wessex) encourages all landlords that may be affected to read the proposal in detail before responding to the consultation survey.  The consultation closes on 13th May 2018.

The proposal was not unexpected after Councilor Paul Smith’s (BCC’s Cabinet Minister for Housing) outburst at a recent landlord meeting, where he revealed plans to introduce City Wide licensing were due to “Labour Policy!

Together with recent changes in tax legislation, higher tax threshold landlords with large portfolios now face bankruptcy.  Irrespective as to whether the landlord is compliant or rogue. Additional licensing does not discriminate sufficiently between the two!

The Council has not demonstrated how a basic Additional Licensing fee of £1,660 can possibly be justified.  If the Council maintains that this level of fee reflects its costs of administering the scheme, then it must be so inefficient that it must be challenged.  While the Council may have the legal power to introduce new measures, it is also under a duty to do so in the most cost-effective manner possible.  ALL Wessex is aware of at least one significantly lower cost alternative scheme.

Furthermore, the Council needs to be reminded that there is a legal obligation on Councils to only spend the funds raised from Additional Licensing on the scheme.  It is simply illegal to spend this money on other Council services.

The Council is proposing that a discount of £775 can apply, resulting in a net fee of £885.  However, the Council has not justified why its costs would be so much more if landlords cannot comply immediately with these requirements.  Even at a proposed discounted fee level of £885, ALL Wessex has some difficulty in understanding how the Council’s costs can be so high.

Whilst we wish to support the eradication of rogue landlords and where necessary support landlords in meeting an acceptable rental standard, we do not believe Additional Licensing as proposed is in the interest of landlords or their tenants.

We will be providing landlords with guidance on how to best respond to the consultation in due course.   All landlords must play an active part in objecting to this proposal”

Rob Crawford, Chairman for the Association of Local Landlords (Wessex)

Source: Property 118

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Southampton City Council to discuss renewal of HMO scheme

CALLS are being made for a crackdown on Southampton landlords in a bid to stamp out anti-social behaviour across the city.

Housing bosses say landlords need to take a tougher stance against tenants who make life a misery for neighbours.

The calls come as residents across the city are given their say on how landlords who run houses of multiple occupancy (HMO) are licensed.

The council’s current scheme, which covers Bevois, Bargate, Portswood and Swaythling, is set to expire in July.

Council housing bosses hope to renew the current policy, which they say has been a “success”.

But they are required to consult with residents first.

Ahead of the launch of the consultation, residents and councillors are calling for the council to toughen up the scheme, in order to tackle absent landlords and unruly tenants.

Sandra Lockhead, chair of the Central Portswood Residents’ Association, said the Portswood area has been “completely changed” by the influx of HMOs.

She said: “We’ve had major problems with anti-social behaviour, noise, damage to cars and rubbish piled up in the streets.

“It’s not acceptable behaviour.”

Mrs Lockhead blamed “marauding students” and “absent landlords” for the bulk of the problems.

She said: “Normally the agencies are quite good, but some of the landlords just don’t care.”

Mrs Lockhead’s concerns have been echoed by Portswood ward member, councillor Paul O’Neill.

He said: “I’ve had reports of late night parties, fireworks being set off in the early hours of the morning.

“They leave the bins out and in some areas you can’t even walk on the pavement.”

He added: “I think the scheme is working but within a certain remit.

“I think landlords need to be accountable to the residents in neighbouring properties.

“It should be similar to pub landlords, who have a responsibility to local residents.

“If they don’t get their customers to behave they face losing their licence.”

The council’s current additional licensing scheme was launched in 2013.

All HMO properties which have three or more occupiers from two or more households must be licensed and must comply with any set conditions.

This excludes those covered by the government’s Mandatory Licensing scheme.

The council says it has handed out 3500 HMO licences since the scheme launched five years ago – half of those with set conditions.

The authority says almost 40 per cent of properties do not comply.

In a report, set to be discussed by councillors tonight, housing chiefs says their is “still work to do to raise standards”.

But it states that since the introduction of the scheme, noise nuisance and waste complaints have fallen by more than 50 per cent.

Complaints by tenants about housing conditions have also fallen by 75 per cent.

Council leader, Simon Letts, said he was pleased to see the scheme supported by a Conservative councillor.

Meanwhile, the Southern Landlords Association, which represents members across the south east, has promised to work with the council during the consultation.

However, one of its directors, Peter Littlewood, rejected calls for tougher regulations.

He said: “In general, landlords as a whole do work with tenants to control anti-social behaviour.

“But if someone continues to do it, all you can do is evict.

“It is the council and police that have the powers to deal with it.”

The city council’s cabinet are set to make a final decision on the launch of the consultation at a meeting tonight.

The cabinet will then make review the result of the consultation at a meeting in June, in the hope of implementing a new scheme before the current one expires in July.

Source: Daily Echo

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HMO planning permission for pub conversion rejected

A plan to turn the empty “The Greyhound in Sutton at Hone” north Kent pub into a house in multiple occupation has been thrown out by Dartford councillors.

An application to renovate the Greyhound in Main Street, Sutton at Hone, into an 11-bedroom HMO has been rejected following a meeting.

The developer, Bestsafe Development, wanted to replace the roof with a higher single-pitched roof increasing the height by 1.4m.

In its application, the developer said: “This proposal for the conversion of a former public house to form an HMO of 11 no. single bedrooms would be a positive addition to the local area.

“It will enable young persons to live locally, close to their families, and yet be able to commute to central London via nearby train station. It will bring much needed economy to the area and local businesses.”

An HMO is a home that has at least three tenants living there – and the scheme for the Greyhound proposed 11 single bedrooms, along with 12 parking spaces.

However, the scheme has been rejected because of how the new roof would impact on the setting of a Grade II listed building – The Hollies.

The council rejected the application on the grounds that the height of the new new roof would have significant detrimental impact to the appearance of the building.

Source: News Shopper

 

HMO finance
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Hampshire Trust Bank cuts rates for HMO & Buy-To-Let Mortgages

Hampshire Trust Bank’s commercial mortgages team has cut its remortgage buy-to-let and (HMO) 5-year fixed rate to 3.99%.

The deal is applicable to loans ranging from £200,000 to £1m, there is no application fee and it is subject to terms and conditions.

The commercial mortgages team offers bridging and term finance secured against buy-to-let, semi-commercial and commercial property with loan amounts from £100,000 to £2.5m.

Anna Lewis, head of sales, commercial mortgages, at Hampshire Trust Bank, said: “We are delighted to be launching another deal to our brokers.

“We are committed to continually improving our service and driving product enhancements wherever possible.

“We understand that this is a challenging time and want to help our brokers to make the most of opportunities in the remortgage BTL and HMO space.”

The commercial mortgages team offers bridging and term finance secured against buy-to-let, semi-commercial and commercial property with loan amounts from £100,000 to £2.5m.

Source:  Hampshire Trust Bank