Insurance News Archive
HMO licensing comes into force
The highly controversial new house of multiple occupancy (HMO) regulations have come into force.
The new laws, designed to protect individuals living in houses with five people or more over three or more storeys, will require landlords to become licensed with the local council. Owners will also be subject to suitability checks.
A range of industry experts have queued up to condemn the regulations, saying that they will force smaller landlords out of the market. Lee Grandin, managing director of Landlord Mortgages, said some of the fears may be unfounded.
"Although some industry pundits have predicted that these new regulations will cause rents across the UK to rocket as landlords struggle to reclaim the cost of HMO's from their tenants, I believe that this regulation will only affect selected areas of the buy-to-let market," he said, highlighting that most buy-to-lets are single storey buildings and would be exempt.
However, landlords may pass the cost down to tenants in some markets.
"Landlords who operate in the highly lucrative university lettings market are likely to feel the pinch and will naturally pass on the costs to their tenants," said Mr Grandin.
© Adfero Ltd
06 Apr 2006