Counting the cost: Council’s exorbitant charges for HMOs!

Counting the cost: Council’s exorbitant charges for HMOs!

0:02 AM, 18th January 2024, About 3 months ago 16

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Hello, I am expressing my concern regarding the local council charges for HMO licensing fees. I own a 5-bedroom flat in Scotland that has been converted into an HMO, compliant with the guidelines provided by the council.

Initially, the council fees were £300.00 per year, which seemed reasonable considering the need for the council’s HMO officer to visit the property and generate a report.

However, after five years, I have observed a significant increase in the licensing costs, now totalling £1010.00. What raises questions for me is that during this entire period, there has not been a single visit from a council officer to inspect the property’s HMO compliance.

Instead, all that was required on my part was submitting the necessary HMO documents to the council.

Given the absence of on-site visits and the relatively straightforward nature of managing the documentation, I find myself wondering if the increased cost is justifiable solely for the administrative task of handling these documents.

I am not sure of the factors contributing to this substantial fee hike, especially considering the limited council involvement in physically assessing the property’s compliance.

What do others think?

Thanks,

Raj


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Comments

Student landlord Birmingham

11:09 AM, 18th January 2024, About 3 months ago

Raj
This is one of the “joys” of being a landlord.
I have an HMO student house in Birmingham and the cost for a 5 or 6 bed HMO 5 year licence is in excess of £1100 and, as in your case, the council do not visit.
The bottom line is that it is purely a money-making exercise for the council and there is nothing you can do about it other than to pay up.

JB

11:30 AM, 18th January 2024, About 3 months ago

You could consider yourself lucky that you haven't had a visit as it usually means some further expense is required. The cost of my last license plus the 'extras' required have meant the rent must go up by £300 per year to break even over the 5 years.

Mr.A

12:25 PM, 18th January 2024, About 3 months ago

You don't mention which city /town it is in .All councils have their own charges .
Glasgow always do a property visit with a fire officer present before even considering renewing the hmo licence.
Currently it's about 1000 for up 6 bedrooms for 3 years . First application for a hmo licence is £2000 for 3 years .

Student landlord Birmingham

12:41 PM, 18th January 2024, About 3 months ago

Reply to the comment left by Mr.A at 18/01/2024 - 12:25Mr A.
All i can say is that I’m glad I don’t have a property in Glasgow. £2,000 for 3 years is scandalous !! Just more money for councils who in most cases have had huge budget cuts. Landlords are a very easy target.

Ian Narbeth

15:49 PM, 18th January 2024, About 3 months ago

The charges levied by our Council for HMO licensing have gone up substantially (thankfully our licences last for 5 years) and we have also been put to expense upgrading some fire doors.

However, as Mick Roberts wisely says, "At the end of the day, the tenant pays for everything." If you get any kick back, tell your tenants how much it costs in licence fees to house them.

Chris @ Possession Friend

20:58 PM, 18th January 2024, About 3 months ago

What's happened is Councils have gone to politicians to say they can't cope with enforcing Housing standards on the financial allowance paid to them by Govt.
Instead of increasing funding, and in accordance with the hostile climate against landlords, Government legislated the ability of Local Authorities to charge Licensing schemes whereby they generated extra revenue from landlords but obfuscating the burden falling on the end funders, viz Tenants

JB

9:25 AM, 19th January 2024, About 3 months ago

Tenants need to wake up and understand that THEY are paying for this. I'm surprised the liberal left haven't jumped on this

Ian Narbeth

10:22 AM, 19th January 2024, About 3 months ago

Reply to the comment left by Chris @ Possession Friend at 18/01/2024 - 20:58
Chris
Councils are only supposed to recover the costs of administering the scheme. They can be challenged if charges are excessive. Unfortunately, it is up to individual landlords to challenge - and risk coming to the attention of housing officers and given enhanced oversight.
However, if there is a great disparity between Councils with similar demographics and housing stock then a challenge may be a good idea. £1000 pa is several times what we pay.

Chris @ Possession Friend

10:59 AM, 19th January 2024, About 3 months ago

Reply to the comment left by Ian Narbeth at 19/01/2024 - 10:22
Yes Ian, but Licensing schemes are just another route to addressing Standards ( and often, not actually addressing, where there are no inspections ! )
Before Licensing, enforcement had to be carried out from existing budgets, which all accept, were being strained ( like every public service )
But at least that was on an ' if it aint broke, don't fix it basis '
Inspecting a property in absence of any issue or complaint raised is just another example of Nanny-state.

Hiremath

9:38 AM, 20th January 2024, About 3 months ago

Reply to the comment left by JB at 18/01/2024 - 11:30
Hi JB,

I'm totally on board with covering the costs if the council deems it necessary to make modifications for the safety of our tenants. Safety first, right?

Just a thought: It would be great if the council could schedule a visit to the property at least during the time of renewal. It's like killing two birds with one stone – ensuring safety and catching up on property vibes.

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