THE COUNCIL of Mortgage Lenders has lodged strong objections to the new legislation requiring landlords to register Homes in Multiple Occupation from April.

In a letter to the Office of the Deputy Prime Minister, the CML has warned that some mortgage companies will either not lend at all on HMOs in future or will tighten their criteria, and that licensing could drive landlords from the sector.

The warnings echo those that have been consistently made by the RLA.

Jan Bartlett, an Oxfordshire letting agent, said: “The mandatory licensing of houses in multiple occupation will mean more red tape for landlords and this may encourage some to sell properties that fall under this category.

“However, HMO landlords who have owned their property for a number of years, and have good capital growth, would do well to keep it and ensure it meets these new standards.

“A rental property that meets the HMO licensing requirements is likely to achieve a higher selling price than a similar property that doesn’t.”