Government to consult on extension of mandatory HMO licensing

A picture of an HMO property

The Residential Landlords Association (RLA) has obtained information on government plans to extend mandatory licensing for House in Multiple Occupation (HMO) property.

According to the RLA, the government plans to change the mandatory licensing parameters that apply to HMO properties in order to tackle illegal immigration 1.

Cameron crack down on 'unscrupulous' landlords

This has clarified a speech made by Prime Minister David Cameron last month, prior to the Queen’s Speech, in which he outlined plans to “crack down on unscrupulous landlords… by introducing a new mandatory licensing regime” 2.

Will HMO licensing be extended to all rented properties?

Mr Cameron’s comments caused confusion and consternation among landlords and industry bodies, who feared that the regime may apply to all rented properties.

Will HMO threshold for licence change?

At present, HMO properties fewer than two storeys high or that are let to fewer than five households are licensable only at the discretion of local authorities. It is currently unclear what change the regime will undergo, but it is possible that either threshold could be lowered or removed altogether in order to bring more properties under mandatory licensing.

Click here to find out more about current HMO regulations and how to obtain finance for an HMO property.

References

  1. “Government could extend scope of mandatory licensing to tackle illegal immigration”. RLA. 27 May 2015.
  2. “UK lettings agents and landlords surprised at proposal for mandatory licensing”. Property Wire. 25 May 2015.

This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.

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