July 2007 - HMO Licensing Update

The Housing Act 2004 introduces the biggest changes to the lettings process that the Private Rental Market has seen for some time. The new legislation has left many landlords confused and worried.

Here at homes4u we are committed to making the lettings process as easy and stress-free as possible. For our Managed Landlords, we’ve made complying with the new rules as simple as possible.

Read on for the first of our series of straight-forward updates on the key legislation news….

This month… HMO Licensing Update

HMO Licensing has been a hot issue for nearly every landlord in the land since it was introduced as part of The Housing Act 2004. The new rules came into effect on 6th April 2006, and still there is confusion, with different local authorities taking different stances & rolling out in different ways.

A HMO is a ‘House under Multiple Occupancy’ and refers to a property, or part of a property, which has 3 or more people who make up more than one household (family or couple) The legislation aims to protect the health, safety & rights of private tenants by setting standards, and in some circumstances, requiring landlords to get a license from their local authority before letting their property.

Manchester City Council

□ Currently, only HMO’s with 5 or more bedrooms, and 3 or more storeys (not including the basement unless it is habitable) require a license.

□ All HMO’s that have 3 or more tenants are required to meet the standards, but do not need be licensed. Licensing will become mandatory for other categories of HMO as when the council advise.

□ Manchester City Council has been told by the government to be stricter on minimum bedroom, lounge and kitchen sizes, and on minimum bathroom facilities

□ The Council is starting initial proceedings to bring HMO’s in Moss Side, Rusholme and Fallowfield under mandatory licensing in September but it will take several months.

□ The Council is allowing 4 years from the granting of a license for landlords to fit wash basins in EVERY bedroom, this proposal is due to be challenged

□ A marketing campaign will soon commence, asking tenants to report any property that they think should have license but doesn’t. This could possibly lead to fines for the landlord, and a refund for the tenant of all rent paid in full.

□ The Council feel that license applications have been made for the majority of licensable properties, and will they now be inspecting properties over the next 12 months.

□ To gain a license, your property has to meet certain standards, be owned or managed by a ‘fit and proper person’ and that tenancies must be managed ‘suitably’- which includes following proper deposit procedures.

If you have a managed property homes4u are able deal with
all aspects of gaining a licence.

Tenants Deposit Protection also forms part of the Housing Act 2004, and the new rules came into force on April 6th 2007. Did you know that if you do not protect your tenants’ deposits in the prescribed ways, and your tenant reports you, you could lose the right to issue Section 21’s, and as well as having to return the deposit to the tenant, you will have to pay them a fine of three times the deposit amount?

Catch our next issue for all the latest on Deposit Protection…


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