The Landlords Union “Press Liaison” Questions HMO Minimum Room Size Impact Assessment

The Landlords Union “Press Liaison” Questions HMO Minimum Room Size Impact Assessment

11:49 AM, 8th May 2018, About 6 years ago 109

Text Size

We were recently approached by a landlord of a four bedroom HMO property whose Local Authority had contacted her to remind of the approaching restrictions on minimum room sizes. One of this landlords bedrooms was slightly below the 6.51 sq metre limitation, which becomes effective from 1st October under  ‘ The Licensing of Homes in Multiple Occupation ( Mandatory Conditions of Licensing ) Regulations, 2018.

The landlord’s options are quite limited. She will have to serve a Section 21 Notice on the tenant of the smaller bedroom, who, hitherto, has been content with this accommodation for the level of rent paid. Its worth pointing out that so too were the Local Authority, as there is ample residual living space in the rest of the property.

Also, and as a consequence, the rent for the remaining three tenants will have to increase to the maximum that the market rate can bear. This will be more than currently payable, but no doubt still at some loss to the landlord.

Interestingly, there is a detailed 22 page Impact Assessment published by MHCLG, albeit omitting the number of units of accommodation that are foreseen to be lost by this legislation, the amount of rental increase other tenants in the property will incur and the resultant financial loss to landlords from rent not recoverable.

We have written to Cynthia Brathwaite , the author of the Impact Assessment to ask:-

  1. How many units of accommodation are expected to be lost, and
  2. What impact the reduction in units of accommodation will have financially on landlord and tenants?

Unbelievably, the Impact Assessment Report makes no reference to these fundamental issues!

It is suspected the reasons these factors are not covered is because the government believe, naively, that Landlords will just downsize without financial compensation and suffer the loss of rent ‘on the chin’ together with the license fee.

[ The above links to another piece of work about the causes of rent increases, soon to be published. Watch this space! ]

Whilst we are waiting for a response to the fundamental questions raised, it would be useful if members have any similar experiences that publicise in regards to “true consequences”. Please post comments below or email Press@Property118.com


Share This Article


Comments

Robert M

23:12 PM, 8th May 2018, About 6 years ago

Reply to the comment left by David Price at 08/05/2018 - 22:46
Hi David, yes, the government has allowed social housing providers (Councils and registered housing associations) to put social housing rents up at a higher percentage than what private rented housing rents are increasing by, and this makes it more attractive for publicly subsidised housing associations and councils to build (or buy) housing to rent out. - Again, this seems to be part of the squeeze on small scale private landlords in favour of large corporations. Overall, I'm not sure it adds to the total amount of housing for sale or rent, but it does enable certain favoured housing providers to build and rent more properties!

Hamish McBloggs

8:44 AM, 9th May 2018, About 6 years ago

And there was the Welfare Reform Act 2012. (bedroom tax). This has helped many many people.

Chris @ Possession Friend

8:47 AM, 9th May 2018, About 6 years ago

Reply to the comment left by Ross Tulloch at 08/05/2018 - 22:20
Ross, The Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licensing) (England) Regulations 2018 coming into effect on 1/10/18 states at para 1B.3 that the Local Authority 'can' give the license holder up to 18 months to comply.
Some L.A's in the example of the Landlord I spoke with, are clearly not allowing any additional time for compliance.
But the more examples of this legislation and its effects we have, the better.

Andrew

21:26 PM, 9th May 2018, About 6 years ago

I have two HMO properties in Camborne and Redruth in Cornwall. I have a room in each property that will be below the ideal standard. One is 4.9 sqm’s and the other is 5.5sqm’s they seem small on the ideal standard size but the Tenats are happy with a smaller room and lower rent, I’ll have no way of increasing the larger sqm room in one of the houses and building costs would be huge and I would need to evict two tenants to complete the works for an age whilst it’s done. I’ve spoken to the council and they politely said don’t worry, you’ll have 18 months to sort the problem or just close that room off and don’t rent it out anymore. Ahh thanks for your understanding🙄.
What will happen when landlords give up with properties like these and are pushed to evict all there perfectly happy and comfortable tenats. What will councils do then?

Chris @ Possession Friend

21:29 PM, 9th May 2018, About 6 years ago

Reply to the comment left by Andrew at 09/05/2018 - 21:26
Andrew,
Have you got the councils response in writing,ideally telling you to evict your tenants within 18 months. We need this kind of evidence to show local Govt's response on behalf of MHCLG.

TheMaluka

22:11 PM, 9th May 2018, About 6 years ago

Reply to the comment left by Andrew at 09/05/2018 - 21:26
What will councils do? There is absolutely no need to worry Heather Wheeler will eradicate rough sleeping by 2027.

Andrew

22:33 PM, 9th May 2018, About 6 years ago

Reply to the comment left by Chris Daniel at 09/05/2018 - 21:29
No it was a telephone conversation. In fairness he was more than polite but I’ll have nowhere to go on this so will defiantly be evicting two happy tenants when this is put into place, I cant foresee ripping the upstairs of the house apart to gain 1 foot in the smaller room really worth it, all the mess, upset tenatnts living on a building site for x amount of time. I suppose I’ll probably lose the other tenants if I’d try and hike their rents to try and cover the lost room. Oh and the cost of the licence.... hey ho....🙄

Chris @ Possession Friend

22:35 PM, 9th May 2018, About 6 years ago

Reply to the comment left by David Price at 09/05/2018 - 22:11
David, I got distracted reading your post - by a pig flying past my window 😉

marek

7:39 AM, 12th May 2018, About 6 years ago

I think we have here a linguistic issue - a space of 6.1m2 cannot be called a 'bedroom'... 3x2m...? Only in the UK. Pathetic...

Chris @ Possession Friend

7:59 AM, 12th May 2018, About 6 years ago

Reply to the comment left by marek at 12/05/2018 - 07:39
Marek,
I think there is a Mathematical issue ( not linguistic,) its 6.51 sq. m.
I don't know what the average size of bedrooms where you come from are, but many/most in the UK are over 6.51. The issue here with shortage of accommodation is that especially in city areas where the market cost of Housing is expensive and where there is ample other living accommodation, many tenants ( and Local Authorities ) have been quite content to pay a lesser rate of accommodation for a bedroom of something like 7 foot by 9 foot.
The result of this legislation takes that choice away from tenants and reduces the amount of rooms / housing available at a time when there is an acknowledged chronic shortage.
So those tenants who will be forced by legislation to be evicted by the landlord, and the remaining tenants who will see their rents increase to cover the cost of the building - wouldn't agree with you.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now