Posts with tag: HMO licensing

Letting Agent Fined for Not Applying for HMO Licenses

Published On: July 8, 2015 at 9:45 am

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Letting Agent Fined for Not Applying for HMO Licenses

Letting Agent Fined for Not Applying for HMO Licenses

A letting agent has been fined £8,000 for failing to apply for House in Multiple Occupation (HMO) licenses at three properties in Birmingham.

Ultrabarn did not apply for licenses for three properties in Erdington and Sutton Coldfield. The firm was fined £1,500 for each of the three offences, plus £500 each for seven breaches of HMO management regulations. It was also ordered to pay full costs of £2,631 and a victim surcharge of £120.

At one property, the letting agent did not ensure the fire escape route was maintained and there were holes in the ceiling around service pipes. It also failed to guarantee the good working order of firefighting equipment and fire alarms.

At another property, the agent breached HMO regulations regarding fire escapes. Furthermore, there was no fire blanket in the communal kitchen, no smoke detectors where required in communal areas, and insanitary conditions and inadequate provision for the disposal of rubbish.

A Birmingham City Council spokesperson says: “Ultrabarn is an experienced and well-known letting company in this part of Birmingham, and really should be setting an example. Instead, they fell well below standards we expect of the private rented sector.”1

1 https://www.lettingagenttoday.co.uk/breaking-news/2015/7/letting-agent-fined-after-not-applying-for-hmo-licenses

 

 

 

 

 

 

 

 

 

 

Unsafe HMO Results in £16,000 Fine for Landlord

Published On: June 30, 2015 at 2:33 pm

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A landlord in Blackbird Leys, Oxford has been ordered to pay over £18,000 after pleading guilty to 12 charges regarding an unsafe House in Multiple Occupation (HMO).

Ashraf Suleiman Salim El-Hosny, 31, admitted the charges at Oxford Magistrates’ Court on Monday 22nd June 2015.

Oxford City Council brought the prosecution after environmental health officers discovered El-Hosny was renting out an unlicensed HMO on Peregrine Road, which was in a state of disrepair, and did not comply with legal requirements.

An HMO is a property rented by at least three people who do not form one household but share facilities, such as the bathroom or kitchen.

Environmental health officers from Oxford Council’s HMO Enforcement Team inspected the home in November after receiving complaints that it was unlicensed.

Officers learnt that tenants were living in overcrowded conditions, there was no working fire alarm, fire escapes were obstructed, waste was amassing and some electrics were unsafe, such as a broken plug socket.

El-Hosny pleaded guilty to managing an unlicensed HMO and received a £5,000 fine for failing to obtain a license.

He also pleaded guilty to ten breaches of the Management of Houses in Multiple Occupation (England) Regulations 2006 and was given a £1,000 fine for each breach.

El-Hosny was also fined £1,000 after admitting failure to comply with a notice served under the Housing Act 2004.

Magistrates then ordered El-Hosny to pay the Council’s full costs of £1,940 for bringing the case to court and a £120 victim surcharge. The total reached £18,160.

Ed Turner, Deputy Council Leader, was pleased that El-Hosny has been brought to justice, saying the case could have ended in “tragedy.”

He continues: “Offences like this committed by landlords are extremely serious.”1 

1 http://m.oxfordmail.co.uk/news/13356708.Unsafe_cramped_house_costs_the_landlord___16_000_in_fines/

 

RLA Warns Camden Council Against HMO Licensing

Published On: June 10, 2015 at 10:32 am

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The Residential Landlords Association (RLA) has contacted Camden Council, warning them against a borough-wide additional licensing scheme for Houses in Multiple Occupation (HMOs).

RLA Warns Camden Council Against HMO Licensing

RLA Warns Camden Council Against HMO Licensing

The Council’s cabinet assigned the lead member for housing, just one councillor, the responsibility of determining the scheme. Patricia Callaghan has the final say on whether thousands of homes will need a license in order to be legally let.

The consultation was extended until 5th May, after Enfield Council’s decision to require councils to consult those affected in neighbouring authorities. Callaghan is expected to make her decision this week.

The RLA warns that Camden could be wasting money on a licensing scheme that could become invalid in a few months’ time due to the Government’s committal to consulting.

John Stewart, the RLA’s Policy Manager, says: “The Government has indicated its intention to extend the scope of mandatory licensing. It may be that any scheme introduced by Camden now will quickly be superseded by the Government’s new mandatory regime. Surely it would be better to delay a decision until the Government’s intentions are clearer?

“Licensing is expensive to establish and rarely achieves its stated objectives of raising standards and reducing anti-social behaviour. Good landlords will apply for licenses, often passing on the cost to tenants as increased rent, while criminal landlords continue to operate outside the system, unchecked.

“Effective enforcement is essential if the worst conditions in the PRS [private rental sector] are to be tackled. With diminishing resources, councils are cutting back on enforcement, meaning the criminals are rarely challenged.”1

1 http://www.landlordtoday.co.uk/breaking-news/2015/6/rla-urges-camden-to-reconsider-hmo-licensing

Important Information Regarding Landlord Licensing

Published On: June 4, 2015 at 10:24 am

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The Prime Minister recently announced that a national compulsory licensing scheme for private landlords would be introduced. There has now been some clarity on the matter.

The licenses will apply to Houses in Multiple Occupation (HMOs); however, the definition of this property type will change.

The Department for Communities and Local Government has provided clarification after a request for further information from the National Landlords Association (NLA).

Important Information Regarding Landlord Licensing

Important Information Regarding Landlord Licensing

The new scheme will be an extension of the existing mandatory HMO system, which concerns homes that are three or more storeys high and occupied by five individuals or more that make up two or more households.

The Government are yet to consult on the changes.

Some alterations could be that the three storeys rule is reduced to one or the amount of sharers could be lowered.

For landlords, this could cause problems. They may believe that they have a typically normal rental property, but could be forced to license under HMO definition changes.

Additionally, there may be situations where a property is a licensable HMO at some points but not others, depending on who lives there.

There is not yet information available on when the Government will consult on the matter.

Landlords and letting agents will be thankful for this clarification, but there are still worries.

Many rental properties are not currently covered by licensing schemes, as many local authorities do not operate them. If all of a sudden large amounts of properties require licenses, this will create a problem for councils, which are generally under-resourced.

Furthermore, concerns have been raised over the small print of the Queen’s Speech, which has now been published.

This indicates that the Government “will build on the national roll out of the landlord scheme established in the Immigration Act 2014 and make it easier to evict illegal migrants.”1

There is no answer to when this roll out will occur and no information is yet available on how effective the pilot right to rent checks were in the West Midlands.

Landlords and agents should be prepared for the responsibility of checking the immigration status of all prospective tenants.

It is also unclear how the Government will make it easier for landlords to evict illegal migrants. Lawyers warn that it could be a legal ordeal.

1 http://www.propertyindustryeye.com/camerons-landlord-licensing-scheme-important-clarification/

 

Panellists Discuss the Profits and Ethics of HMOs

Published On: May 2, 2015 at 6:50 pm

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At the Property Investor and Homebuyer Show at London ExCel, from 17th-18th April, panellists debated Houses in Multiple Occupation (HMOs).

Landlords are struggling with decreasing yields on their single occupancy buy-to-let investments and are looking to HMOs for higher returns. But do investors have the knowledge and expertise to run HMOs ethically and still make a profit?

HMOs can make strong incomes for landlords, but they must be operated ethically for the tenants. Limited knowledge of HMO regulation can cause problems for both investors and renters.

So how do landlords make money whilst catering for tenants’ need of quality yet affordable housing?

Panellists Discuss the Profits and Ethics of HMOs

Panellists Discuss the Profits and Ethics of HMOs

SpareRoom’s Matt Hutchinson discussed the matter, stating that there has been a 33% increase in the amount of people searching for rooms in shared accommodation, but just a 0.3% rise in the number of people offering these rooms in the first quarter (Q1) of 2015, compared with Q1 2013.1

This indicates the huge potential for investors to move to a market with huge demand. However, this data also proves that attitudes are changing for tenants. Young people may be aspiring to homeownership, but this may not be their only reason for renting.

Platinum Property Partners has recently undertaken research with SpareRoom’s assistance. They found that for people in their mid-20s to early 30s, many do not want the restraint of a mortgage or location and would prefer to travel and work in different areas before deciding where they want to settle down.

So HMOs not only offer attractive yields, but also provide young people with places to live. Tenants who share can save lots more money than if they rent alone, meaning that they have more to put towards a deposit.

The demand for this housing from tenants is for high quality, affordable and well managed homes, not the poor standard, expensive and unsafe HMOs that are run by rogue landlords.

Investors should therefore educate themselves on HMOs to make strong returns and provide quality accommodation to tenants.

Panellist Ash Zuberi says: “An HMO portfolio can be a big beast and you have to learn to control it.”1 

Landlords should be aware of where is best to buy, what they should look for, how to refurbish if needs be, and how to fund their project. They may also need planning permission, should always be tax-efficient, and understand the legislation and licensing that applies to HMOs.

HMOs can deliver great returns, but demand hard work and compliance.

1 http://platinumpropertypartners.co.uk/articles/the-hmo-debate-can-shared-houses-be-both-profitable-and-ethical/

Landlord Fines for no HMO Licence in Worthing

Published On: April 30, 2015 at 3:29 pm

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Landlord Fines for no HMO Licence in Worthing

Landlord Fines for no HMO Licence in Worthing

Magistrates in Worthing have fined a landlord who did not correctly licence his property.

Frank Scanlon, of Pratton Avenue, Lancing, was fined over £7,000 at Worthing Magistrates’ Court regarding issues with his Upper High Street rental property.

Officers from Worthing Borough Council investigated the home, finding seven individuals living there, sharing facilities, but not forming a single household.

The property is also three storeys, and therefore is classed as a House in Multiple Occupation (HMO). HMOs need a licence before being rented, as research has found that these living arrangements can pose higher risks than single occupancy homes.

Head of Housing at Adur & Worthing Councils, Paul Cooper, says: “This type of accommodation can provide much needed living space but does present unacceptable risks to occupants if poorly run, and the mandatory licence provides a level of reassurance that the property is safe and secure for all inside it.

“The level of fine imposed by the court shows that they recognise the importance of the licensing scheme and reinforces the robust stance taken by the council to ensure safe living conditions.”1

1 http://www.residentiallandlord.co.uk/news/3827-worthing-hmo-landlord-fined-for-no-licence.html