New Rules Mean More HMOs Will Require Licenses

The number of HMOs that need to be licensed by local authorities has tripled this month as the government aims to raise standards in the sector.  

Prior to the new rules being introduced only those HMOs that had three storeys or above occupied by 5 plus people living in a minimum two separate households were required to have a license. This has now been reduced to houses of any size which have 5 or more people in two separate households living in them.  

The introduction of the rules has proved to be unpopular with landlords who will now be faced with big bills for the licence to rent their HMOs. The average cost per landlord will be £1,200 which some people believe will need to be covered by rising rents for tenants at least in England where the new rules apply. 

It also happens to be England where properties are in short supply so it remains to be seen whether or not the new rules with backfire and stoke rent increases further.   

With wage growth consistently below the rising cost of housing, the measures are likely to hit the poorest who are the most likely demographic to be renting a rooms in HMOs.

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