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Twickenham Landlord Faces Fines After Renting Unlicensed HMO

A Twickenham landlord is facing fines of almost £5,000 after renting out his property as a house in multiple occupation (HMO) without the correct licensing.

Landlord Maksin Arnautov purchased the Whitton Road property in 2012. He also resides in the home. An investigation carried out by the council last year found that more than five people were living in the property. However, Arnutov did not have a licence.

The Housing Act 2004 states that properties with three or more storeys which are also rented out to five or more people require a HMO licence. Despite the property breaching these conditions, the appropriate licensing had not been purchased.

During a hearing at Lavender Hill Magistrates’ Court on January 9, Arnautov was found guilty of operating a House in Multiple Occupation (HMO) without a licence. The Twickenham landlord was subsequently fined £3,000 and must also pay a victim surcharge of £170 and £1,466 to the council in compensation.

Richmond Council’s cabinet member for housing, public health and community safety, Councillor Mark Boyle, commented on the case: ‘Following an investigation by council officers, this is a great result. This prosecution sends out a clear message that unscrupulous individuals cannot hide. It is our job to protect tenants’ safety and we will take appropriate enforcement action if landlords fail to obtain a licence or manage their properties. I am pleased that the courts are supporting the council in this approach through the sentence and fine issued. The growing issue of HMOs in our borough continues to be a problem. And whilst we will continue all our work on the ground, we will continue to make it clear to the Government that it must prioritise action over HMOs before sub-standard, over-crowded housing, and all its flow-on effects begin to impact the character and quality of life within our borough.’

Source: Residential Landlord

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Plans to turn Wrexham town centre property into House in Multiple Occupation allowed on appeal

PLANS to turn Wrexham town centre property into a House in Multiple Occupation (HMO) have been allowed on appeal.

Last year, Wrexham Council planning committee members voted unanimously to reject proposals to convert the property in Albert Street, Smithfield, into a six-bedroom HMO following a site visit.

Members voted unanimously to reject the application based on the concerns over inadequate parking provision.

But  applicant Arran Pritchard has lodged an appeal with the Planning Inspectorate in the hope of overturning the committee’s decision.

Mr Pritchard appealed on the grounds that it had been recommended for permission to be granted for the development.

He said converting the property to a HMO would have no negative effect on parking and added the property is in a sustainable location given proximity to bus routes and easy walking distance to nearby shops and facilities.

Planning Inspectorate officer Clive Sproule agreed, giving the greenlight for the development to go ahead.

Mr Sproule said a report provided by Wrexham Council’s service manager for the environment, Darren Williams, showed the scheme would not be likely to result in greater on-street parking demand.

And evidence provided by Mr Pritchard supported that view.

Mr Sproule said: “Off-street car parking opportunities are limited, which will cause many vehicle drivers and owners who live in these streets to rely on on-street parking.

”While doubts have been raised regarding the basis of the appellant’s evidence, there is no convincing evidence that demonstrates the service manager environment’s assessment and conclusion on the possible impact is likely to be unreliable.

”Consequently, it is not apparent that on-street parking would be likely to increase due to the appeal scheme. In this regard, the council has failed to demonstrate that the appeal proposal would be unacceptably harmful to local living conditions or highway safety.”

He concluded: “The proposal would result in social benefit through the provision of homes for people within a particular sector of the housing market.

”They would be in a location that would provide pedestrian access to the jobs, services and transport opportunities within the centre of Wrexham.

”Occupants of the rooms would contribute to the local economy and it has not been shown that the development would have anything other than a neutral impact on local culture.

”Accordingly, the appeal scheme would be a sustainable form of development and should be allowed.”

Source: The Leader

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Have your say on how council manages houses in multiple occupation in Wrexham

Members of the public are being invited to have their say on how a council manages houses in multiple occupation (HMOs).

In recent months Wrexham Council has received a spate of planning applications to turn properties into HMOs.

Some of the more notable applications reported on by the Leader recently include the refusal of a 20 room extension to an existing HMO in Pentre Felin, the conversion of a property in Pen y Bryn into a 10 bedroom HMO, which was approved on appeal, and plans to convert a property in Rhosddu Road into a self-contained apartment and a five-bedroom HMO – which was refused by the council but is now under appeal.

A consultation, which was launched by Wrexham Council at the end of last year and closes on February 19, looks at how the authority handles ‘concentrations’ of HMOs across the county.

A draft version of the ‘local planning guidance note 5: houses in multiple occupation’ made available to view on the council’s website explains how council chiefs intend to assess the proximity of existing HMOs to the site of any proposed new ones.

According to the document HMOs fall into two categories – small (occupied by three to six unrelated people) and large (occupied by seven or more people) and planning permission is required to turn any building into a HMO, as well as to turn a large HMO to a small or vice versa.

The document explains: “Most houses in multiple occupation in the county borough are found in Wrexham town and are predominately located within the wards of Offa, Smithfield, Erddig, Brynyffynnon and Grosvenor.

“Houses in multiple occupation can be of benefit to an area by providing low cost housing solutions for those who may otherwise have difficulty finding a place to live as well as accommodation for students, young professionals and health care workers.

“In fact, the Wrexham Council housing market assessment recognises that there is likely to be a need in the future for smaller units of accommodation in the county borough. HMOs can go some way towards meeting this identified need.

“The housing In multiple occupation review and evidence gathering report published by the Welsh Government in 2015 acknowledged that large concentrations of HMO can result in problems, including damage to social cohesion with higher levels of transient residents and fewer long term households and established families, greater difficulties for owner occupiers and first time buyers because of competition from landlords and a reduction in the number of family homes, increases in noise, crime and anti-social behavior and increase pressure for parking.”

Describing how the placement of HMOs will be assesed in order to avoid over-concentrations in certain areas, it adds: “Planning permission will not normally be granted for a new HMO if, including the property subject to the application, it will result in the number of residential properties in use as a HMOs exceeding 10 per cent (rounded to the nearest
whole number) within a 50 metre radius of the boundaries of the application site.

“The use of a 50 metre radius is considered to be the most appropriate way to assess HMO concentrations because it can be applied consistently to each proposal.

“In addition, to avoid concentrations of HMOs developing within streets, there must be a gap of at least two dwellings or other buildings not in use as a HMO between a proposed HMO and any existing HMOs.”

In terms of other planning requirements, the guidance note states houses in multiple occupation should have a large enough private outdoor area to provide external drying areas, cycle parking and bin storage.

Most HMOs will also need a separate licence from public protection and will be subject to conditions that require landlords to take all reasonable steps to control noise and anti-social behaviour.

To find out more, and to comment, visit www.wrexham. gov.uk/english/planning_portal/ and select ‘planning policy’ then ‘draft supplementary planning guidance notes for consultation’.

Source: The Leader

Tough new laws landlords hmo
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Tough New Laws To Stamp Out Rogue Landlords

Tough new laws for shared housing landlords will come into force from April 2019, says Housing Minister Alok Sharma.

Although the rules will need clearance from Parliament, the measures will curb overcrowding in houses in multiple occupation by demanding landlords offer tenants more sleeping space.

The rules will cover all private rented homes in England where five or more tenants from two or more separate households live.

From April, local councils will have to licence an extra 160,000 shared homes. Councils are already responsible for licensing 500,000 homes in England.

Bedrooms sleeping one adult will have to measure at least 6.51 square metres, while those for two adults should be no smaller than 10.22 square metres.

Rooms for children up to 10 years old must be 4.64 square metres or more.

Unscrupulous landlords

The new HMO licence will state how many people can live in a room and the total occupancy for a property will specify how many people can stay in a home as a way of halting overcrowding.

The new measures will also specify several criminal offences that will bar landlords from letting out shared homes.

Landlords will also gain a duty to manage refuse disposal and recycling for HMO properties.

“Every tenant has a right to a safe, secure and decent home. But far too many are being exploited by unscrupulous landlords who profit from providing overcrowded, squalid and sometimes dangerous homes,” said Sharma

“Enough is enough and so I’m putting these rogue landlords on notice – shape up or ship out of the rental business.

£30,000 fines for breaking new laws

“Through a raft of new powers, we are giving councils the further tools they need to crack down these rogue landlords and kick them out of the business for good.”

These new measures add to action by the government to improve safety and standards in the private rented sector.

Recent action includes bringing in fines of up to £30,000 for dodgy landlords, protections for tenants from revenge evictions and £12 million funding for councils to take enforcement action in hotspot areas.

A database of rogue landlords convicted of housing offences is due to switch on from April.

Source: iExpats

HMO licensing regime
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HMO licensing regime to be expanded to include low-rise homes and flats

Houses in Multiple Occupation that have to be mandatorily licensed are to include properties – regardless of height – that are occupied by five or more people from two or more households.

Currently, HMOs that must be mandatorily licensed are of three or more storeys.

The new rules, which have to be put before and approved by Parliament, will bring an extra 160,000 homes, including flats, bungalows and two-storey houses, into the mandatory licensing regime.

In a separate move, HMRC has revealed plans that would make it compulsory for any landlord applying for an HMO licence to be registered with HMRC first, for tax purposes.

In a consultation open until March 2, the move would crack down on overseas landlords letting out HMOs in the UK and also on UK landlords not paying the right amount of tax.

New rules will also come into force setting minimum size requirements for bedrooms in HMOs. As part of the licensing requirements, local councils will be able to make sure that only rooms meeting the standard are used for sleeping.

Rooms used for sleeping by one adult will have to be no smaller than 6.51 sqm and those slept in by two adults will have to be no smaller than 10.22 sqm. Rooms slept in by children of ten years and younger will have to be no smaller than 4.64 sqm.

Housing minister Alok Sharma has also confirmed that the blacklist of landlords and letting agents will be implemented this April.

He was, however, silent on who will have access to this blacklist. As things stand, only local councils and the DCLG will be able to access the list – not tenants, nor landlords or other members of the public, and not prospective employers hoping to avoid recruiting agents with bad track records.

The Government has however set out details of criminal offences which will automatically result in a ban from being a landlord. Convictions for crimes such as burglary and stalking will be added to convictions for housing offences resulting in bans.

Separately, Labour has announced that it will ban ‘no fault’ evictions if it comes to power. Leader Jeremy Corbyn said it would be a manifesto commitment. The Scottish government has already brought in a ban.

Source: Property Industry Eye

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Colchester Landlord Fined £20,000 For HMO Offences

A rogue Colchester landlord has been fined after being found guilty of nine offences in relation to a house in multiple occupation (HMO).

Landlord Cyril Thomas, who runs property management company Platinum Crown Investments Ltd, was told that he must pay £20,000. Thomas was fined £1,000 for each of the offences he committed. On top of this, he was ordered to pay over £11,000 in costs as well as a victim surcharge of £100 by Colchester Magistrates. The total sum he was ordered to pay by the court amounted to over £20,000.

The landlord’s offences were discovered following an inspection in December 2015. The home, described by the council as a flat above the letting office in Colchester, had been converted without the correct Building Regulations approval. The conversion was also poorly executed. The local authority asserted that this contributed to breaches of HMO management regulations. This was due to the creation of fire risks, and an inaccessible fuse box. The later issue had rendered residents stuck in the cold and dark for two nights after the electrics tripped.

The judges showed some leniency to the landlord by allowing him to pay the sum over a prolonged period of 20 months. However, Thomas still intends to appeal the decision.

He stated after the hearing: ‘I’m disappointed with the decision that has been taken in regards to prosecuting me in my personal name. However, I’m pleased that Platinum Crown has been acquitted of all 10 charges that were brought against it.  Having given careful consideration to the way in which this case has been handled, my legal advisors believe we have grounds to appeal and an appeal has now been lodged. As previously mentioned, Platinum Crown takes its property management responsibilities extremely seriously and generally enjoys an excellent working relationship with Colchester Borough Council.’

Source: Residential Landlord

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New Government powers to ban landlords and additional HMO regulations

From April 2018 any landlord convicted for the criminal offences of blackmail, theft,  handling stolen goods, harassment and stalking will automatically be banned from letting out property and added to the new rogue landlords database.

In addition Housing Minister, Alok Sharma, has introduced new HMO regulations set to be passed by Parliament confirming all properties occupied by 5 or more people from 2 or more separate households will face mandatory licensing.

The new HMO regulations will include:

  • Minimum bedroom size requirements (to prevent overcrowding). Rooms used for sleeping by a single adult will have to be no smaller than 6.51sqm, and those occupied by two adults will have to measure at least 10.22sqm. Rooms slept in by children of 10 years and younger will have to be at least 4.64sqm in size.
  • Responsibility falling on landlords to ensure the council’s rules on refuse and recycling are adhered to.
  • Additional powers to be given to local authorities for cracking down on over-crowded and sub-standard homes.

The government has estimated this will bring 160,000 into the licensing regime.

Alok Sharma said: “Every tenant has a right to a safe, secure and decent home, but far too many are being exploited by unscrupulous landlords who profit from providing overcrowded, squalid and sometimes dangerous homes.

“Enough is enough, and so I’m putting these rogue landlords on notice. Shape up or ship out of the rental business. Through a raft of new powers we are giving councils the further tools they need to crack down these rogue landlords and kick them out of the business for good.”

The RLA policy on this was previously spelt out by David Smith saying: “Councils are already struggling to enforce licensing schemes and the extension will potentially triple the number of homes under mandatory licensing.

“What is the point in introducing extra regulations if there are no resources to enforce them?

“Tenants should not be forced into excessively small rooms, but there are cases where tenants have other space available within their properties, which should be taken into account. By concentrating so narrowly on bedroom size the Government could knock thousands of rooms out of the sector, potentially forcing tenants out of their homes.”

Source: Property 118

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HMRC “Tackling the Hidden Economy”

The HMRC consultation titled “Tackling the Hidden Economy” has identified HMOs and selective licensing in the private rental sector as an option for developing tax-registration checks.

The consultation proposes to tackle different areas of the hidden (non tax paying) economy by making access to licences needed to trade conditional on tax compliance, known as ‘conditionality’.

Click Here to see the full  HMRC paper.

HMRC wish to target Licences issued under the Housing Act 2004 as the government believes they
may be suitable for conditionality.

Selective licensing for private rented properties:

Part 3 of the Housing Act 2004 (the Act) sets out a scheme for licensing private rented properties in a local authority area in England and Wales. Under section 80 of the Act, a local authority can introduce selective licensing of privately rented homes in order to tackle problems in their areas (or any part or parts of them) caused by low housing demand or significant anti-social behaviour. In 2015, DCLG introduced further grounds for implementing selective licensing schemes: poor property conditions, high levels of migration, high levels of deprivation and high crime.

Where a selective licensing designation is made it applies to privately rented property in the are a, and all properties in the private rented sector are required to be licensed by the local housing authority (subject to certain exemptions). Local authorities in England are required to obtain confirmation from the Secretary of State for any selective licensing scheme which would cover more than 20% of their geographical area or would affect more than 20% of privately rented homes in the local authority area.

Houses in multiple occupation (HMO) licences:

A house in multiple occupancy (HMO) is a property rented out by at least three people who are not from one ‘household’ e.g. a family, but share facilities like the bathroom and kitchen. Licences are required for those who rent large HMOs. There are approximately 510,000 HMOs in England and approximately 64,000 of these are currently required to be licensed. The Department for Communities and Local Government (DCLG) recently consulted on changing the definition of mandatory licensing which would bring a further 160,000 HMOs in scope.

Local authorities have the power to introduce additional licensing schemes, which would capture further
HMOs. These licences must be renewed every 5 years.

The Paper goes on to say:

“The government values the private rented sector and wants to see a strong, healthy and vibrant market, which meets housing needs in a professional way.

This includes ensuring that landlords are reporting and paying the tax they owe.

To support this aim, HMRC is increasing its targeted compliance activity across the private rental sector through taskforce activity. It is also encouraging those who have been non-compliant to come forward through activities such as the Let Property Campaign

Applying conditionality to HMO licences could support existing HMRC compliance activity by helping and encouraging more landlords to ensure they are compliant with tax laws before renting out properties.

Similarly, there may be potential for tax-registration checks to be incorporated into selective licensing schemes where appropriate and proportionate.”

Source: Property 118

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Landlords fined for failing to look after property in Camborne

Two landlords who failed to ensure a house of multiple occupation in Camborne was maintained adequately have been fined £2,000 by the courts.

Anthony Pickering and Alan Short pleaded guilty at Truro Magistrates Court this week to breaching several requirements of the Management of Houses in Multiple Occupation Regulations 2006 (“HMO Management Regulations”).

The charges were brought by Cornwall Council in relation to a property at Pendarves Street, Tuckingmill, Camborne.

On the 19 January 2017, Cornwall Council Private Sector Housing Team visited the premises and found that the communal kitchen and bathroom, staircase, rear out building and garden were poorly maintained.

The pair were given an opportunity to put right the problems but failed to do so.

Pickering, aged 57 of St Francis Meadow, Mitchell and Short, 53 or Hunter’s Gate, Okehampton were facing several charges.

The admitted failing to ensure that the common parts of the premises were maintained in good and clean decorative repair, maintained in a safe and working condition free from obstruction in relation to the kitchen and bathroom amenities and that they failed to ensure all hand rails and bannisters were at all times kept in good repair.

They also admitted failing to ensure that outbuildings, yards and forecourts used by residents of several properties were maintained, clean and in good working order.

Two other offences – failing to ensure that the common parts of that premises were maintained in good and clean decorative repair, maintained in a safe and working condition and free from obstruction in relation to the kitchen amenities and that every window and means of ventilation were kept in good repair were withdrawn.

They were ordered to pay a total of £3,847 – £2,000 for the offences committed, £1,647 in prosecution costs and a victim surcharge of £200.

Cornwall Council cabinet member for homes Andrew Mitchell said: “Well managed multi-occupancy houses are an important part of the housing market in Cornwall. However where the standards of management are poor, it can place tenants at significant risk of serious harm.

“In situations such as this, the Council will take enforcement action to protect the health, safety and welfare of occupiers.”

In 2018 it is anticipated that the Government will widen the coverage of the existing mandatory licensing scheme to cover all rented housing shared by five or more people.

To find out more and keep abreast of changes to the private rented sector, landlords are encouraged to join the free Cornwall Responsible Landlords Scheme.

Source: Cornwall Live

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Council collects £30,000 in housing fines from landlords

£31,606 has been collected in fines by Oxford City Council for housing offences since new financial penalty powers came into force in April 2017 to help clampdown on rogue landlords and protect the safety of renters.

The new powers, granted under the Housing and Planning Act 2016, allow local authorities to impose penalties to a maximum of £30,000 as an alternative to prosecution for various housing transgressions. Councils can keep all the income and spend it on private sector housing enforcement.

In a press release, Oxford City Council outlined the fines they have imposed: “In the biggest of the three fines, a landlord who owns a rented property on Garsington Road received financial penalties totalling £25,298 for failing to licence it as a house in multiple occupation (HMO) and uphold HMO management standards.

“The landlord was issued a financial penalty of £7,149 for failing to licence the property as well as an additional £18,149 for four separate fire safety failures.

“The third landlord was given a financial penalty of £1,234 for renting out an HMO on Iffley Road whose licence had expired in 2014. All three landlords cannot be named for legal reasons.”

Councillor Alex Hollingsworth, Board Member for Planning and Regulatory Services, has spoken on the issue: “I’m pleased that the Council can now take swift action against landlords who break the rules, and do it without the costs of taking a case through the courts. We will continue to use these new powers to drive up standards in the private housing sector and protect tenants from unsafe homes and rogue landlords.”

Source: Oxford Student