News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the May / June 2005 issue RPI news archive

Housing Act ‘badly drafted’ - May / June 2005

THE Housing Act has been slammed by RLA director Mark Butterworth. He said: “It is badly drafted, rushed legislation.”

Butterworth said most problems related to the 300,000 or so Houses in Multiple Occupation (HMOs) in England and Wales. “From October all HMO properties have to comply with the regulations – but no one knows yet what they are. No clear definitions have been given. Instead, local authorities can interpret the rules differently.

“Landlords are being given no chance to prepare. One day their properties are legal, the next they face substantial fees to license them, maybe massive expenditure to upgrade them, and threatened with fines or prison sentences if they don’t.

“The licensing fee alone has jumped by 60 per cent since last year when the ODPM was talking of £110 per bedspace. Now the word is as high as £180.

“So, a landlord with 100 tenants could be paying £18,000 plus the cost of any work required to bring a property into line with the Act. And this specification may also require an older property to reduce the number of tenants, in which case the expense would be met from less income.

“All this could be enough to drive landlords out of business while putting them at risk of jail, fines and bankruptcy.”
 

other artilces from the May / June 2005 issue

• Home truths
• Landlords relieved by landmark ruling
• Homes Direct must abide by law
• RLA BRIEFING
• RLA unveils scheme to recognise top landlord
• Housing Act ‘badly drafted’
• Highlights of a busy year
• Tax