New Licensing Regulations for HMOs

The Government has stated that it will allow Councils to determine themselves whether or not to relax the rules on which houses need to be licensed in order to be converted to houses of multiple occupation.В  Previously Councils were required to consult the Secretary of State if they wished to set out their own criteria.В  From April they will still be required to consult locally about their new proposals but will not have to consult the Secretary of State.

Imposing additional licensing is designed to enable Councils to curb the flow of new HMOs, and stop the growth of high concentrations of this type of dwelling in certain parts of the country.

The main investors in the property market at the moment are ‘cash rich investors’.В  One example of this type of investor is the private sector landlord.В  As the Government finds more and more red tape for these landlords to cut through in order to continue their business more will be deterred – often the good landlords.

The aims are to stop high concentrations in student areas, and to combat the bad landlords.В  However, when the policies are in place nationally this can impact upon the whole country.

No thought is given to where people that want this type of accommodation will live instead!В  Or what impact it will have on the housing market as private landlords are deterred from investing.В  We would say that it will have a negative impact upon the housing market, slowing it down again and making it more difficult for people to sell their house quickly.В  With landlords less willing to buy houses quickly for cash the housing market cannot help but be affected.

January 29, 2010  Tags: , ,   Posted in: Legislation, Private rented