HMO regulations 'nuisance' to landlords

House of Multiple Occupancy (HMO) regulations are driving amateur landlords away from the market, imposing unrealistic restrictions on suitable property.

The beginning of July marks two years since councils were given powers to enforce licensing of HMOs, which allow them councils to prosecute landlords who fail to register to the tune of £20,000.

However, they have proved a burden to the market, with landlords unable to unwilling to make necessary renovations to properties.

"I think a lot of them have found it a nuisance," complained Chris Horne, editor of Property Hawk.

"It's scared a lot of amateur landlords off doing HMOs because of the potential cost implications.

"Quite often it means that landlords have to fork out for specialist fire systems – sprinkler systems et cetera – which are incredibly expensive. You could be looking at £5,000 to £10,000 to get one of those, and also the rewiring and things like that that need to be put in place."

The new power was designed to strengthen the government's reforming drive to further protect tenants and raise both health and safety and management levels in the private rented sector.

"So it's turning into more of a specialist sector, the larger HMOs that come under the licensing regulations, whereas it used to be very much small scale, amateur landlords so that's one of the results of it," added Mr Horne.

"It's become more of a specialist sector within the private rented sector, which more experienced and larger landlords are concentrating on and becoming dominant within that sector."

Chris O'Toole