hmo Archives - Page 4 of 11 -

Marketing June 18, 2018 No Comments

Firms on HMO register named after Freedom of Information challenge

FIRMS and organisations responsible for hundreds of multiple-occupancy homes across Northern Ireland have been named for the first time after a year-long Freedom of Information challenge.

For more than a decade the Housing Executive (NIHE) has maintained a list of the properties in the north registered as Houses of Multiple Occupancy (HMO).

The published HMO register lists information including the addresses of the properties, but does not show who is in charge of them.

However, NIHE has now disclosed the more than 200 public organisations in charge of HMOs – naming them in respect of each property.

It reveals firms and organisations control almost a quarter of all HMOs in Northern Ireland.

HMOs are generally properties let to three or more people from two or more different families.

Of the 5,790 HMOs registered in the north, companies and organisations are responsible for 1,341 which represents almost 11,000 permitted occupants.

Choice Housing has the most HMOs with 202 properties holding 1,402 people, followed by JHT UUJ Ltd with 118 properties covering 590 occupants, and Queen’s University Belfast with 111 properties and 2,100 occupants.

The details were disclosed to The Irish News following a complaint in June last year to the Information Commissioner’s Office (ICO).

NIHE had refused to disclose details in relation to all properties on the HMO register.

However, following discussions with the ICO, the housing body agreed to release information on HMOs run by firms and organisations and withhold details of HMOs run by individuals.

Nicola McCrudden, director of the Chartered Institute of Housing (CIH), welcomed the publication of the list.

“HMOs are generally a more affordable housing option for a variety of groups including students and migrant workers. They also tend to house some of the most vulnerable in society with multiple needs beyond housing,” she said.

“Due to the shared nature of this housing, HMOs are considered to be higher risk and regulation is necessary to ensure residents’ homes are safe.”

Ms McCrudden said they “welcome this transparency” for firms, but said extending it to individual landlords remains divisive.

She said social housing landlords are regulated and their names are publicly available, and “given that the private rented sector is now larger there is a clear argument that transparency should be extended”.

But she added: “Making individual landlords’ contact details publicly available is a contentious issue.

“We recognise the safety concerns expressed by some landlords, particularly those with larger portfolios.

“However, this must be balanced against the needs of tenants who may not have their landlords’ contact details.

“The HMO Act 2016 is yet to be implemented due to no Executive in place, but is intended as an update on the management and regulation of HMOs including mandatory licensing – whether or not ownership details will appear public register remains unclear.”

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:: The 15 firms and organisations in charge of the most HMOs in Northern Ireland

Company – Number of properties – Number of permitted occupants

1. Choice Housing Ireland Ltd – 202 – 1,402

2. JHT UUJ Ltd – 118 – 590

3. Queen’s University Belfast – 111 – 2,100

4. University Partnership Programme – 65 – 412

5. University of Ulster – 60 – 402

6. SOBE Developments Ltd – 52 – 231

7. Triangle Housing Association Ltd – 43 – 214

8. Lanyon Jersey Propco Ltd – 42 – 322

9. Silverline Developments Ltd – 40 – 164

10. Croob Properties Ltd – 30 – 282

11. Apex Housing Association Ltd – 29 – 517

12. Radius Housing Ltd – 26 – 376

13. Nexus Property Services, Rentals and Management – 18 – 93

14. Craigowen Housing Association Ltd – 17 – 177

15. Oakdene Properties Limited – 17 – 90

Source: Irish News

Marketing June 12, 2018 No Comments

Leicestershire Landlord Prosecuted For Faulty Investment Property

A Leicestershire landlord was prosecuted after he converted a home into three flats without planning permission and without a fire escape.

Landlord Satwinder Singh Phull converted a Glenfield property into three flats ‘without planning permission or building regulations approval.’The home was ‘considered to be’ a house in multiple occupation (HMO). It was inspected by Blabby District Council’s environmental health team in October last year, with a follow up visit some days later from a prevision office from Leicestershire Fire and Rescue service (LFRS).

Three live exposed electrical conductors were revealed in one flat, with two of these at a reachable height. Mr Phull was also unable to state which electricity supply fed lights in communal areas as well as which fed the boiler. There were also ‘insufficient’ waste disposal facilities and no ‘adequate fire escape’ for any of the flats should a fire occur. This led to fire officers declaring that that the property ‘posed an imminent risk of serious harm to any occupants due to the inadequate fire escape’.

Two emergency prohibition orders were subsequently issued and two of the flats were ‘immediately prevented from being used as residential accommodation’.

At Leicester Magistrates’ Court, Mr Phull’s barrister defended him, claiming that his client was ‘not a professional landlord’.

Mr Phull had also since carried out work on the property in order to ensure that the prohibition notices were removed. However, he was fined £4,250 after being convicted of four offences under the Housing Act. Mr Phull was also told to pay council costs of £867 as well as a victim surcharge of £125. The total fines amounted to £5,242 to be paid in £500 instalments.

Portfolio holder for leisure and regulatory services at Blaby District Council, Iain Hewson, stated: ‘This ruling once again highlights our message to landlords that we will not tolerate poor living conditions in the district. As the owner of a hotel Mr Phull should be fully aware of fire safety, particularly in the wake of terrible tragedies such as the Grenfell Tower incident. We urge anyone living in rented accommodation that thinks may not comply with the law to contact us so we can investigate.’

Source: Residential Landlord

Marketing May 30, 2018 No Comments

HMO plans for former cafe recommended for approval despite local opposition

Plans to convert into a 12 bedroom HMO could be given the go ahead next week, despite opposition from local community councils.

Members of Wrexham Council’s Planning Committee will debate the plans to convert the restaurant /café on 79 Holt Road into a ‘one person one room’ house multiple occupancy (HMO).

Plans for a change of use of the property were submitted to Wrexham Council in April 2018.

At present the existing property consists of a restaurant / cafe on the ground floor and five flats on the first and second floors.

A layout plan submitted by the applicant at the time shows that the 12 bedrooms would be be based across three storeys – with five bedrooms and a kitchen on the ground floor, four bedrooms on the first floor and three bedrooms and a smaller kitchen on the second floor.

Despite the plans being recommended for approval by the council’s head of environment and planning, the application has received opposition by both the local community council and by the adjoining Caia Park Community Council

Three objections were put forward by the community council, who say that the proposed use will result in a “very dense and over concentrated use of the site” and that the change of use will “increase pressure on the limited nearby off street parking and may result in vehicles reversing onto Borras Road.”

They also add that: “The proposed HMO and its associated use by tenants will result in an increase in noise and
potential to impact and cause nuisance to other nearby residents due to noise, crime and antisocial behaviour impacting on Community Safety.”

Caia Park Community Council also argue that “given the numbers proposed and the potential for resident’s vehicles it is felt that the scale of development is inappropriate.”

However comments submitted by the council’s highways department say that “the site is served by an existing access with adequate visibility in both directions” and that “it is therefore considered that the proposed development would in theory have a reduced demand compared to the existing dwelling/café.”

The application will be discussed by planning committee members on Monday 4th June at 4pm. For those unable to attend the meeting it will be webcast on the Wrexham Council website.

Source: Wrexham

Marketing May 18, 2018 No Comments

FSE Manchester: Experts see HMOs as growth area for buy-to-let

Buy-to-let experts at the buy-to-let panel at FSE Manchester recommended intermediaries to do more HMO deals.

Adrian Moloney, sales director at OneSavings Bank, said “We’re seeing more commercial properties because it’s outside of the tax rules and landlords look at more HMO student accommodations because of greater returns.”

He added that with new rules coming into force in October that’ll potentially create 170,000 HMOs in the country, it’s an area advisers need to engage with.

He said: “Are you engaging with your landlords? Do you know it’s coming? Part of the journey the PRA has to do is assess this.”

Moloney warned though that if a landlord develops and lets out a HMO, they are limited because a family probably wouldn’t move into it.

He added: “I think it’s an ongoing discussion that will go on the next few months.”

David Whittaker, managing director at Mortgages For Business and Keystone Buy to Let Mortgages, said that if the new rules say a property with seven rooms has six due to how the new measurements work, he will have to follow that and underwrite for six rooms.

That’s not the only new rules since from April landlords can only let out properties with an energy rating of E or above.

Whittaker found in the county of Lincolnshire 26.4% of properties in 2014 that were rented out to landlords lacked basic EPC requirements.

He added: “So anyone that sends me a portfolio for Lincolnshire, I’ll look at each property more closely and I think every lender will too.”

With many rule changes such as these and mortgage tax relief reductions, Whittaker argued that brokers should be paid more in proc fees.

He said: “They will stay up. From 1 September we did it with Keystone because we recognise the world has become more complicated.

“I welcome everything that puts something back on our side of the table for all the extra work you have to do before you even decide which lender to use.”

Source: Mortgage Introducer

Marketing May 15, 2018 No Comments

New guidance to limit ‘over concentration’ and number of HMOs in Wrexham

New planning guidance that could help limit the ‘over concentration’ of HMOs in any one area have been backed by councillors.

Over recent years Houses in Multiple Occupation (HMO) have become a hugely contentious issue – with an increase in the number of application submitted to Wrexham Council proposing residential and former office / retail space are converted into HMOs.

The issue has been particularly prominent in the six town centre wards – Brynyffynnon, Erddig, Grosvenor, Maesydre, Offa and Smithfield. This has prompted the six town centre councillors to come together with the aim of strengthening planning guidance.

Current ‘Local Planning Guidance Note’ for dealing with HMOs was adopted in February 1993 and revised in June 2004.

However a report presented to Executive Board members last Tuesday, notes that the guidance “currently lacks specific criteria for determining whether there is an over concentration of HMOs in a given area and for the provision of outdoor amenity space”.

In a bid to resolve issues with clusters and over concentration of HMOs, Executive Board members last week unanimously backed plans to adopt new planning guidance.

The new guidance will limit HMOs to 10% within a 50 metre radius of the boundaries of the application site. Where concentration is more than 10%, “planning permission will not normally be granted unless there are relevant material planning considerations to justify doing so”.

It also provides criteria that will be used to discourage the development of clusters of HMOs within individual streets. This would be achieved by “a gap of at least two dwellings or other buildings not in use as a HMO between a proposed HMO and any existing HMO”.

This will enable the planning committee to consider community needs in assessing planning permissions.

At last week’s meeting Lead Member for Planning and Corporate Services, Cllr David Kelly, acknowledged that the previous plan is considered “no longer fit for purpose” due to lack of specific criteria on over concentration of HMOs and provision of outdoor space.

He added: “I know certain members have had longstanding issues with HMOs and the concentration.

“I believe the work done in consultation with town centre members goes a long way to address a lot of the issues.”

The planning guidance relates to applications across the county borough, however it is noted in last week’s meeting report that a series of meetings had been held with town centre councillors as they represent the areas where the “vast majority of existing HMOs are situated and where there is greatest demand for new HMOs”.

Councillor Marc Jones, who represents the Grosvenor ward, has previously described the situation with HMOs as “frustrating” and a “catch 22”.

Speaking after the meeting, Cllr Jones said: “We want to ensure a mix of housing – owner occupier, private rented, council housing and HMOs.

“The situation in some neighbourhoods and streets is that HMOs are dominating and that can cause problems in terms of transient populations, overcrowding, parking issues, poor amenity space and, in a minority of situations, anti-social behaviour.

“As councillors representing those areas most affected by HMOs, we have pushed officers to strengthen guidelines. We haven’t achieved what we hoped for with this guidance but it is a step in the right direction. We will review and monitor the effectiveness of the new guidance to see whether it does have the intended effect.”

During last week’s meeting Cllr Jones also spoke on behalf of a cross-party support group of the six town centre councillors, who recently met Wrexham AM Lesley Griffiths to stress the importance of Welsh Government support for new guidance.

They also highlighted the need for the Planning Inspectorate, nominally under Welsh Government control, to allow local councils to make decisions affecting local communities.

Cllr Jones added: “What we’ve seen in too many cases is that the local planning committee makes a decision, the landlord appeals to the Planning Inspectorate appeals and that is upheld. That’s not local democracy at work and it undermines the whole point of having a planning committee.

“We need to make sure the message will get through to Cardiff that our communities are a very fragile balance and the wrong decisions can have a huge impact on streets and neighbourhoods.

“HMOs have increased because many people don’t have any other option and that’s an indictment of how affordable homes aren’t being built.

“Councils such as Wrexham haven’t built a home for rent for a generation, although that will change later this year as the council starts to build again.

“These will start to replace the 10,000 council houses sold off since 1980 in Wrexham alone.”

Source: Wrexham

Marketing May 15, 2018 No Comments

Legislation change could catch out HMO landlords

New government rules mean thousands of buy-to-let investors will be forced to become licensed HMO landlords from 1 October.

The Residential Landlords Association claims that this will result in a further 177,000 landlords being subject to mandatory licensing. It will also affect all existing HMO landlords, who will have to ensure their properties meet new minimum standards.

Brokers are being urged to familiarise themselves with the new requirements, and contact clients who could be affected. Those that do not apply for the appropriate paperwork from their local council could be subject to unlimited fines and other legal action.

Many may also have to pay for property renovations to qualify for the licence.

Currently, a licence is only required for properties with three or more storeys that are occupied by five (or more) people from at least two households. From 1 October this will be extended to all properties that are occupied by five or more people from two or more households – regardless of the size of the property.

Licences are issued by the local council and are valid for five years. Landlords will have to demonstrate they are ‘fit and proper’, and that the property meets all relevant safety standards. Evidence of certain safety certificates will have to be updated on an annual basis.

At the same time, the government will introduce new minimum room sizes for licensed HMOs. At the moment some local authorities prescribe minimum room sizes, while others set out advisory standards.

Mortgages for Business chief executive David Whittaker says: “Many landlords will be unaware of these changes. They have been hit with a triple whammy of changes in recent years, so it is up to brokers to help explain how this latest regulatory change will affect them.”

He also pointed out that these minimum room standards may cause some problems for existing HMO landlords.

Mortgage Advice Bureau head of lending Brian Murphy says: “As an industry it is important that we have the right resources in place, with advisers equipped with the knowledge and experience necessary to help their customers.”

Coreco director Andrew Montlake says: “Whilst many of us understand why these changes have been instigated the quick timing between them means that landlords have had no respite in which to fully deal with them. We now need a period of calm to let this all bed in.”

Source: Mortgage Strategy

Marketing May 11, 2018 No Comments

Government urged to hold parliamentary debate on minimum room sizes

Letting agent groups are warning that the private rental sector is set to lose vital stock as the Government presses ahead with plans for minimum room sizes for Houses in Multiple Occupation.

The National Approved Lettings Scheme (NALS) and ARLA Propertymark have both said they understand the changes but have questioned whether they should go ahead.

HMO landlord Dhugal Clark has launched a petition calling for a parliamentary debate on minimum bedroom sizes that are set to be introduced in October through the the Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018.

He warns that the changes – which sets a minimum bedroom size requirement at 6.51 square metres for a person aged ten years or over – will reduce the number of rooms available for tenants and mean those living in bigger properties will end up paying more council tax as well as higher rents.

David Cox, chief executive of ARLA Propertymark, said the proposals had been consulted on since 2016 and warned it was too late for a parliamentary debate but said the trade body has written to the previous housing ministers to question these changes.

He told EYE: “We have made verbal and written representations with the Government.

“We understand where the Government is coming from. They want everybody to live in good quality accommodation but a lot of older properties have boxrooms.

“There are always people willing to have a smaller room to save money on rent, this is going to take away those rooms and means the costs are shared by fewer people.

“People happy to live in a box room have to pay increased rent to live in a bigger room.

“Why does the Government feel it knows better than an individual making an informed decision based on the size of a room?”

Isobel Thomson, chief executive of NALS, added: “NALS would like to see more parliamentary debate over minimum room sizes in HMOs.

“While we understand Government’s aim is to improve some specific types of HMO accommodation in the sector, it’s important that common sense prevails. As it stands, the proposed changes will remove councils’ discretion to assess a property on its own merits, as they can now.

“This means we’ll lose much-needed accommodation from the PRS in what are otherwise decent and safe properties.”

Source: Property Industry Eye

Marketing May 7, 2018 No Comments

HMO and multi-unit landlords have highest rental yields

Landlords with houses in multiple occupation (HMO) and multi-unit freehold blocks (MUFB) in their portfolio are reaping the highest rental yields, according to research by Precise Mortgages.

Yields on houses in multiple occupation were typically 7.1% in the first three months of 2018, 1.3% higher than the market average, the study carried out by BDRC Continental showed.

Multi-unit blocks were found to yield 6%, compared to 5.8% across all property types, over the same time period.

However, average yields dipped slightly in Q1 2018 to 5.8% from 5.9% in the last quarter of 2017 and are now at the same level as Q1 2017.

Smallest landlord portfolios have lowest yield

The highest average yields of 6.7% were achieved on portfolios of between 11 and 19 properties, underlining the continued rise of the professional landlord.

By contrast those with just one property achieved yields of 4.8%.

On a regional basis, landlords with portfolios in the North West reported the highest rental yields at 6.7% while central London portfolios produced the lowest average yields at 4.8%.

Precise Mortgages managing director Alan Cleary noted that experienced landlords were looking to rebalance their portfolios given changes in the market.

“As HMOs attract multiple tenancies, gross rental income tends to outstrip single lets and rental income is more secure even if one tenant leaves a void,” he said.

Source: Mortgage Solutions UK

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 15, 2018 No Comments

Swindon Borough Council To Crackdown On HMOs

Swindon Borough Council is planning a crackdown on HMO investments, with new rules coming into force in October.

The change in regulation will require buy to let property investors to obtain a licence for all houses in multiple occupation (HMOs) which are home to five or more residents. This is likely to result in a five-fold increase in the number of HMOs that require a licence.

The changes have been welcomed by the local council, who have drawn attention to the fact that areas such as Broadgreen and Eastcott are home to many house-shares. Residents in these areas have expressed concerns about problems associated with shared housing, such as anti-social behaviour, fly-tipping and parking shortages.

In the current regulatory environment, HMO landlords only require a council licence for shared homes that are at least three storeys high and are let to five or more people who share a toilet, bathroom or kitchen. The new rules, set to come into force on October 1, will get rid of the height requirement, meaning that many more HMOs will need to be licensed.

There are currently 120 licensed HMOs in Swindon. However, council officers estimate that between 600 and 800 could end up being licensed under the new rules.

Borough housing chief Mike Ash said: ‘Due to the nature of Swindon’s housing stock and market, the great majority of HMOs in Swindon will fall under a licensing scheme following these changes, and this will allow for much more effective regulation of the sector.’

A spokesman for Swindon Borough Council added: ‘When the extension becomes law, the council will look to prosecute any landlords that wilfully fail to apply for a licence. Persistent offenders may also be banned from involvement in renting property, and also entered onto the national Rogue Landlords Database, which is currently being set up by the government.’