hmo licensing Archives - Page 4 of 6 -

Marketing July 18, 2018 No Comments

Thurrock Landlord Fined For Failure To License Investment Property

A Thurrock landlord has been fined £2,252 after failing to license her property and failing to provide acceptable living conditions for her tenants.

Rogue landlord Adeola Makinde was found guilty of failing to licence her rental property in Norfolk Place, Chafford Hundred. The property required a house in multiple occupation (HMO) licence. A trial at Basildon Magistrates Court last week lead to Makinde being prosecuted for her failure to sort this out.

The court was told that Thurrock Council had been requesting a HMO licence application from Makinde since 2014. However, no application was made.

An inspection in July 2017 revealed that the property contained 12 people living in four rooms as well as sharing a single kitchen. It also found that there were inadequate fire safety measures and a number of issues with the condition of the property which rendered it unfit for human habitation. The overcrowded nature of the property could have endangered the health of the tenants who lived inside as well as causing severe problems if a fire were to start and the residents needed to escape.

Makinde pleaded not guilty to the charge of failing to licence the HMO, three breaches of HMO management regulations, failing to return information about the house and failing to return documents. However, magistrates deemed her actions were unreasonable and therefore found her guilty of all six charges.

Councillor responsible for Thurrock housing, Barry Johnson, said: ‘We believe everyone should have a good quality place to live and will continue to take action against those landlords who fail to ensure their properties are safe, well managed and properly licensed. We are currently consulting on a proposed new additional licensing scheme which would mean more landlords who own shared houses and flats have to comply with national health and safety standards and local criteria.’

Source: Residential Landlord

Marketing July 4, 2018 No Comments

Landlord fined over £20,000 for not licensing HMO with fire hazards in Bath

A Bath landlord has been fined £24,000 after failing to licence and manage a House in Multiple Occupation, which council investigators found to be in poor condition and had fire hazards.

Allan Green, of Credenhill Road, London, was charged with failing to licence a House in Multiple Occupation (HMO), failing to comply with regulations related to the management of the HMO and failing to respond to a formal request for information.

Green was found guilty of all six offences by Bath Magistrates when the case was heard on 30th May.

He was fined £24,000, £4000 for each of the six offences, ordered to pay the prosecution costs of £1,860 and the victim surcharge of £170.

The court heard that Bath & North East Somerset Council started investigations following a complaint from a resident about the property.

Officers found the property should have been licensed as an HMO because it is within the council’s Additional Licensing area and was occupied by three unrelated tenants who were sharing one or more amenity.

The court heard that officers found the house to be in a poor condition with a number of fire hazards, particularly related to the means of escape from the building.

Green was asked to supply to the council the latest gas and electrical test certificates but failed to do so and contact details for the HMO manager were not displayed in a prominent position within the property.

The court heard the defendant also failed to co-operate with the council or respond to a formal request for information.

Council officers served schedules of works on Green but he failed to complete any of the remedial work and did not apply for an HMO licence.

Councillor Paul Myers, (Conservative Midsomer Norton Redfield) Cabinet Member for Economic and Community Regeneration, said: “Our Housing Service always works in partnership with landlords to improve housing standards wherever possible.

“Additional licensing helps to ensure that occupants of HMOs are able to live in safe and well-managed properties.

“Where landlords fail to licence their properties such as the case here, they are undermining the objectives of the Additional Licensing Scheme and are putting the safety of their tenants at risk.

“This case shows our message is clear – landlords and letting agents operating outside the law will not be tolerated by Bath & North East Somerset Council.”

For more information on the legal requirements for Houses in Multiple Occupation, visit: www.bathnes.gov.uk/hmos or contact the Housing Standard and Improvement team on 01225 39644.

People can also report an unlicensed HMO here by visiting: www.bathnes.gov.uk/reportunlicensedhmo

Source: Bath Echo

Marketing June 23, 2018 No Comments

Government to review selective licensing as it unveils new guidance for HMO properties

The Government has announced a review into selective licensing to assess how well it is working.

The review will seek evidence from local authorities and bodies representing landlords, tenants and housing professionals, with findings reported next year.

A Government statement said: “In areas where selective licensing applies, landlords must apply for a licence if they want to rent out a property. This means the council can check whether they are a ‘fit or proper person’ to be a landlord, as well as making other stipulations concerning management of the property and appropriate safety measures.

“The review will see independent commissioners gather evidence from local authorities and bodies representing landlords, tenants and housing professionals.

“The review’s findings will be reported in spring 2019. There will be an update on progress in autumn this year.”

It comes as the Government set out guidance for the extension of mandatory licensing of Houses in Multiple Occupation and the introduction of minimum room size requirements.

Local authorities have been told to start making landlords aware of the regulations – being introduced on October 1 – and existing licence holders will need to be given extra time to make their properties compliant when they come to renew their licence after deadline.

Currently, HMO landlords require a licence if letting properties that are three or more storeys and occupied by five or more people from at least two separate households.

From October 1, the licensing rules will be extended to HMO properties of all sizes, including two-storey houses and bungalows.

Government guidance published yesterday said: “Local housing authorities have a duty to effectively implement mandatory licensing in their district.

“This means that they must promote licensing in their area and accept and process applications before October 1st 2018.

“We expect local housing authorities to have the framework in place to process and issue licences in advance of this date and to encourage early applications from landlords who are due to become subject to mandatory licensing. Local housing authorities must also ensure that all applications for licences are determined within a reasonable time.”

The guidance also details rules on minimum bedroom size requirements for HMOs, with a fine of up to £30,000 for those who fail to comply.

The minimum sleeping room sizes are:

· 6.51 m2 for one person over ten years of age

· 10.22m2 for two persons over ten years of age

· 4.64 m2 for one child under the age of ten years.

Any area of the room in which the ceiling height is less than 1.5m cannot be counted towards the minimum room size, the Government said.

Local housing authorities are also required to impose conditions specifying the maximum number of people aged over and under ten who may occupy specified rooms provided in HMOs for sleeping accommodation.

Existing licence holders will have to comply with the new minimum room size requirements from when an existing licence is renewed after October 2018.

If a landlord is not compliant at the time of renewal a local authority must give them up to 18 months to make changes.

Commenting on the announcements, David Cox, chief executive of ARLA Propertymark, said: “Licencing doesn’t work, and it never has done. The Government’s aims are laudable; we’re all striving for the same end goal of improving the private rental sector for consumers, but these policies are impractical.

“Licensing means councils spend all their time administering schemes, rather than enforcing against rogue, criminal landlords – a fact which has been proven time and time again over the last decade. Implementing standards for minimum bedroom sizes means small, cheap bedrooms will be taken off the market at a time when there’s an acute housing shortage.

“This will increase costs for other tenants living in the property, and means those who need or want these small, cheap bedrooms will be left without anywhere to live.

“The announcement, coupled with the gradual removal of mortgage interest relief, new energy standards for landlords, and the ever-increasing fees for these schemes, means landlords are being hit from every side.

“At a time when the Government is concerned with rising rent costs, all its policies are just increasing costs for landlords, fostering a private rented sector where financial burdens due to ever-changing legislations will keep rising.”

Source: Property Industry Eye

Marketing June 22, 2018 No Comments

HMO licensing guidance for local authorities – and landlords

The Ministry of Housing, Communities & Local Government has today issued the document “Houses in multiple occupation and residential property licensing reform: guidance for local housing authorities.”
The guidance has been produced for local housing authorities, but is also intended to be of use for landlords.

Click Here to read the full document.

From 1 October 2018 any landlord who lets a property to five or more people from two or more separate households must be licensed by their local housing authority

This document has been prepared as a guide for local housing authorities to help them understand how to implement the reforms to houses in multiple occupation (HMO)licensing.

Under the Housing Act 2004, larger that are 3 or more storeys and occupied by 5 or more persons forming at least 2 separate households are required to be licensed.

With effect from 1 October 2018 mandatory licensing of will be extended so that smaller properties used as in England which house 5 people or more in 2 or more separate households will in many cases require a licence.

New mandatory conditions to be included in licences have also been introduced, prescribing national minimum sizes for rooms used as sleeping accommodation and requiring landlords to adhere to council refuse schemes.

Housing minister, Heather Wheeler MP, said: “Everyone deserves a decent and safe place to live.

“Today’s new guidance for landlords will further protect private renters against bad and overcrowded conditions and poor management practice.”

Source: Property118

Marketing May 26, 2018 No Comments

HMO licensing – the potential pitfalls for landlords

The change to licensing closes off a major HMO classification loophole regarding the number of storeys a property owns.

An HMO is a property rented out by at least three people who are not from one household (for example, a family) and who share facilities, including the bathroom and kitchen.

Current guidelines state that a license is only required when the property has three or more storeys and five or more tenants from more than one household, collectively sharing the kitchen, toilet or bathroom.

Updates in HMO licensing

Worryingly, however, these criteria have led to some landlords skirting HMO licensing status, particularly evident in student accommodation where landlords squeeze more than five tenants into less than three storeys.

Under the new rules, a property home to five or more people from more than one household, regardless of the number of storeys, will be classified as an HMO.

Landlords will also have an obligation to adhere to rules regarding minimum room sizes.

Single rooms will be required to be a minimum of 6.51sqm and double-rooms a minimum of 10.22 sqm. An extra requirement has also been added for children under 10 years of age, with these rooms required to be at least 4.64 sqm.

Burden for landlords

The new licensing is part of the government’s ambition to encourage more responsible lettings and reduce the possibility of potentially unsafe living conditions for tenants.

However, it will unavoidably place further pressure on Britain’s already stressed landlords.

According to the Residential Landlords Association, 16% of landlords rent to people in HMOs.

It is predicted that once the changes come into effect later this year, a further 177,000 HMOs will be subject to licensing.

Not only will the new rules require these landlords to apply for a license, they’ll also likely lead to some costly upgrades putting their profit margins under pressure.

This could be a result of a reduction in rooms available to let, increased costs to meet regulatory hurdles in terms of room size and subsequent safety measures, or general checks that a property is fit for purpose under the new criteria.

However, forgoing an updated HMO license would result in even greater financial damage, with severe penalties set to be imposed on landlords who fail to adhere.

No grace period

These criteria changes come amid a wave of new legislations, including the updated energy performance certificate (EPC) requirements in April and the various tax and regulatory changes introduced last year.

It seems landlords are being challenged to remain more industry-aware than ever before.

The value of external advice and support through these changes cannot be underestimated, as landlords will have no grace period after the regulation comes into effect on 1st October.

For brokers, this is a chance for them to brush up on the essentials of the new HMO licensing.

It’s the perfect opportunity to build a strong reputation of expertise in regulatory compliance, ultimately creating more business down the line as more landlords look to them for advice.

Source: Mortgage Solutions

Marketing May 22, 2018 No Comments

If you rent a home, your landlord may need a licence!

Tenants, landlords, and neighbours are being urged to alert the council to licensable properties. From 1 October 2018 all houses in multiple occupation (HMOs) rented to five or more unrelated people must have a council HMO licence.

As things stand, a licence is only required if the property is three or more storeys high, but the law is changing this.

Landlords seeking an HMO licence will need to demonstrate to an Environmental Health Officer that the property meets national safety regulations.

The law change is designed to make sure that rented shared houses and flats are of a good standard and are safe to live in.
The council will be conducting inspections of properties over the coming months, and as of 1 October any landlord renting out an HMO without a licence will be committing an offence and could be subject to a large fine.

Those knowingly avoiding applying for a licence could be banned from renting out properties altogether.

Cllr Kim Caddy, Cabinet Member for Housing, said: “Don’t leave it to the last minute – any landlord who rents out an HMO without a licence after 1 October will be committing an offence. We’re also asking tenants, neighbours or anyone else who thinks a property could be licensable to get in touch.”

Source: Putneysw15

Marketing May 21, 2018 No Comments

What brokers need to know about looming HMO changes

The new HMO rules for landlords that will come into force in October will extend the licensing requirements and may also affect room sizes. Brokers working within the buy-to-let market have spent the past few years getting their heads around a raft of recent regulatory and tax changes introduced to the market.

And it’s not over yet; new changes that will affect HMO landlords – as well as some landlords that might not consider themselves to own HMOs – are expected to come into force this October.

What do brokers need to know?

Last year, the government launched a consultation looking at HMOs and residential property licensing. The consultation aimed to give councils best practice guidance on standardising living conditions in HMO properties across the country.

The response to the consultation was published last December and this new legislation on licensing of HMOs is expected to pass through Parliament in the coming months, becoming enforceable in October.

Currently, properties with three or more storeys that are occupied by five or more people from two or more households require an HMO licence. However, the new rules coming into force in October will extend the scope of licensing for HMOs. An HMO licence will now be required for all properties with five or more people from two or more households, regardless of the number of storeys in the property, meaning a substantially higher number of properties will require a licence from October.

In addition to extending the licensing requirements, the government is also proposing the introduction of a minimum room size for bedrooms in licensed HMOs. The new guidance will recommend floor space be no less than 6.51 sq m and 10.22 sq m for single use and two adults sharing respectively. These new rules are expected to impact approximately 170,000 properties in addition to the 60,000 that already have an HMO licence.

What should brokers be doing?

Ultimately, brokers with existing or prospective clients with HMOs must ensure they understand fully the incoming changes so that they can support their clients in the best possible way. Brokers will play a vital role in raising awareness among those landlords whose properties will soon be classified as an HMO.

In addition, the changes represent an opportunity for brokers to further advise and support their clients. For example, for those clients affected by room size requirements or looking to convert their properties into HMOs or student lets, brokers can advise on how to access the funding to undertake these changes.

How can bridging finance help landlords?

One such funding route brokers can advise on is bridging finance. This is ideal for landlords needing a short injection of cash to complete conversions quickly. Indeed, some bridging finance providers will allow borrowers to acquire finance from day one before applying for planning permission, and even those that don’t will have shorter turnaround times and greater flexibility than other lenders.

Therefore, for clients needing to make changes quickly, bridging finance could be an invaluable route of accessing funding so that they can get the changes made within the necessary timeframe. This could be particularly beneficial for landlords who have already had to make changes to properties in their portfolios to comply with EPC regulations introduced this April.

The changes also represent an opportunity for brokers to further advise and support their clients

Changes to EPC regulations mean that landlords with properties with an ‘F’ or ‘G’ energy efficiency rating are required to make changes to their properties to improve their rating, or they face significant fines. These regulations affect both commercial and residential landlords and, while residential landlords won’t typically face high costs when making improvements, commercial landlords could face real problems if they aren’t able to improve their efficiency within the short timeframe – often as little as three months.

Things to remember

As mentioned, brokers have a vital role to play in advising their clients on these new regulations. First, this will mean raising awareness to ensure those landlords whose properties are going to come under the umbrella of an HMO are not only aware of the changes but also understand the steps they will need to take in order to get a licence. This will include finding the funding necessary to increase room size if needed.

Brokers will also play a role in advising those clients who want to either convert properties into HMOs or purchase them.

One final thing to remember is that landlords will be required to renew their licence through their local council every five years. Brokers must ensure that landlords are aware of this and also that they have a licence for each individual property in their portfolio.

Source: Mortgage Strategy

Marketing May 7, 2018 No Comments

Estate Agency And Landlord Both Fined For Licensing Breaches

A landlord has been ordered to pay more than £10,000 for licensing breaches relating to a property that has also seen an estate agency fined.

Willesden Magistrate Court fined Easy Let agency £20,299 in February for failing to licence a three-storey, semi-detached house that was found to be worryingly overcrowded. Following this, property owner Mohammed Mehdi Ali has also been fined £10,000 due to his failure to licence the property, which had been split into flats. This sum is on top of court costs totalling £3,300.

London’s Brent Council found that Easy Let and Ali were in breach of HMO laws. They had crammed more than 10 people into the ground and first floor rooms. Three children were also living in the property.

Willesden Magistrates Court also heard a second case, involving landlord Stephen Citron, who was ordered to pay £17,273 in fines and court costs. This was due to his failure to comply with licensing regulations.

Brent Council had found Citron renting out undersized bedrooms to tenants. He was letting a two-storey property with five standard size bedrooms and two undersized rooms which prohibited for use under the licence conditions.

The rooms measured 5.1 sqm and 4.8 sqm respectively. The legal requirement minimum requirement for a single room is 6.5 sqm, rendering the rooms clearly undersized and unfit for human habitation.

It was said that Citron ignored repeated warnings to make adjustments to his property in order to comply with legal requirements.

Brent Council’s head of private housing services, Spencer Randolph, said Ali and Citron were given ‘every opportunity’ to comply with regulations.

He stated: ‘Instead they held the council in contempt and ended up in court. If they had cooperated with us, they would have been spared the hefty financial blows and criminal records they were dealt in court.’

Source: Residential Landlord

Marketing April 30, 2018 No Comments

Massive extension to HMO licensing comes into force

CHANGES to Government rules mean a huge expansion in the number of HMOs requiring licences. Until this month an HMO (house in multiple occupation) only required a licence if it had three storeys and was occupied by five or more people, in two or more separate households while sharing kitchens/bathrooms.

The new regulations remove the three storey requirement, and Bournemouth council estimates it will have to license an additional 2,500 properties out of an estimated 3,000 previously unlicensable properties across the borough.

A report from the council’s private sector housing team to the communities scrutiny committee states that “2018/19 promises to be another exceptionally busy year”.

“The following key projects and service developments will be delivered,” the report says.

“The Extension to Mandatory HMO Licensing which could mean that the number of licensed HMOs will increase to approximately 2,500.

“The Housing and Planning Act has come into force which will bring further significant changes to our enforcement powers with Banning Orders for rogue landlords.”

Until April, council figures show there were 601 licensable HMOs across Bournemouth and Poole, of which 529 were in Bournemouth.

Bournemouth estimated there were 3,000 non-licensable HMOs in the borough, however in the past officers have often stated that it can be difficult to keep track of unlicensed properties.

Of these, 1,800 were believed to house students.

The new regulations bring in mandatory conditions relating to minimum sleeping room sizes, maximum number of occupants and provision of refuse facilities.

Licenses last for five years.

The private sector housing team, which among its duties is charged with ensuring landlords maintain their properties in good condition, dealt with some 2,600 service requests over the past financial year, according to its annual report.

There were 786 complaints relating to such issues as damp, lack of heating, lack of fire safety and overcrowding.

The team also lodged 11 prosecutions, and by the end of the year had three successes, through which some £2,300 was collected in fines and costs.

Also, the borough’s team has carried out an inspection of the nine mobile home parks in the area to ensure compliance with licence conditions. Together these parks house some 500 mostly elderly people.

One site, which is not identified, was prosecuted for non-compliance and the council collected £850 in fines and costs.

Source: Bournemouth Echo

Marketing April 23, 2018 No Comments

Massive £182,000 fine for buy to let investor after string of HMO offences

A buy to let investor has been found guilty of 35 HMO offences – and has to pay a total fine of £182,314.90, thought to be one of the largest penalties ever for an individual landlord.

Leila Amjadi, of Sutton Coldfield, was found guilty at Birmingham Magistrates Court of failing to obtain HMO licences and for breaches under the HMO Management Regulations.

The offences were in relation to the four properties she owned across Birmingham.

Amjadi was fined £85,000, ordered to pay full costs to the council of £22,974.90 and a victim surcharge of £170. In addition to this, she was ordered to pay a compensation order to 11 of the tenants, totalling £22,000.

Amjadi‘s company, Vertu Capital Ltd was also found guilty of 21 offences relating to two of the HMO properties in Selly Oak and was fined £52,000 plus a victim surcharge of £170.

In 2016, Birmingham council officers became aware that Amjadi’s properties were being let without the appropriate HMO licences.

She has over 10 years’ experience in the property letting industry and was well aware of her responsibility to obtain licences, having previously made HMO licence applications.

The council also received numerous complaints from occupants and local residents regarding the poor maintenance of the properties.

Following inspections by officers, 31 breaches of the HMO Management Regulations were found including missing fire blankets, fire doors that were either missing or inadequate, and smoke detectors which were hanging loose from the ceilings.

The district judge commented that, despite the significant income from her properties, Amjadi was an unscrupulous landlord who did not care for the health and safety of her tenants.

Amjadi was also found to have deliberately used delaying tactics when dealing with both her tenants and the council.

A spokesman for the council says: “This is the largest fine that Birmingham has seen for these type of offences and it sends out a strong message to all landlords that Birmingham city council will use all its enforcement powers to ensure that tenants are protected from rogue landlords who neglect their responsibilities”.

Source: Letting Agent Today

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