Lender wants HMO licence overhaul

There are growing calls for a compete overhaul of the Houses in Multiple Occupancy (HMO) licensing scheme.

Heritable Bank says that the current system has glaring inconsistencies and is largely not unfamiliar to many landlords.

The bank points out that the licence fee varies greatly between different local authorities and says that this is unfair on buy-to-let investors.

"[The scheme] was introduced with no central guidelines on cost or structure and the results were entirely predictable; it has become a revenue earner for the local authorities, instead of a method of improving standards in the private rented sector," said Mark Sismey-Durrant, chief executive of Heritable Bank.

"The government must urgently review the framework for licensing HMOs, so that all parties know what is required of them and what the likely cost to them will be.

"This will enable professional landlords to budget both the time and money needed for the successful development of the HMO lettings market," he added.

It has been highlighted by the bank that a landlord in Hillingdon, London, can expect to pay just £80 per year for a licence, while a landlord in Newcastle must pay £1,100 per year.

Related Articles