Insurance News Archive
Landlords 'put off HMOs by legislation'
Many amateur landlords have been put off house in multiple occupation (HMO) properties due to new licensing laws brought in two years ago, an expert claims.
Chris Horne, editor of the landlord information and advice website Property Hawk, says many have found it a nuisance and others are scared off by the potential costs of HMOs.
He explains that, for example, specialist fire and sprinkler systems often have to be installed and could cost up to £10,000.
For this reason, Mr Horne claims renting out larger homes of this kind has changed from being mainly the domain of small-scale amateurs.
"It's become more of a specialist sector within the private rented industry, which more experienced and larger landlords are concentrating on and becoming more dominant within that sector," he explains.
A house let to three or more tenants - be it a flat or a house converted into bedsits -who form two or more households is a HMO.
In addition, a converted house with one or additional flats which are not completely self-contained and has three or more tenants forming two or more households is also regarded as a multiple occupancy property.
24 Jul 2008
