News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the June / July 1999 issue RPI news archive

Most shared houses will be regulated - June / July 1999

Government plans to license the 'Houses in multiple occupation'sector will cover 'the vast majority of shared houses' unless specifically exempted, it has emerged.
''The government favours...a broad definition (of HMO properties) and specific exclusions', it said in the consultative paper Licensing of houses in multiple occupation - England. That definition would include properties occupied by more than two people who are not all members of the same family or of one of two families.
Exempted would be houses converted into self-contained flats where at least three quarters have been let on long leases and those occupied by the owner as a family home with no more than two unrelated lodgers.
A new and more certain definition is needed because that currently used is subject to interpretation and 'authorities are wary of attempting to use their HMO powers in shared houses, particularly those occupied by students'.
The new definition would 'catch most shared houses' including most student housing.
'We welcome measures to raise standards where appropriate and will be seeking to encourage this Government to approve measures based on self regulation', said RLA Vice Chairman Alan Ward.
'However, the current proposals represent only part of the measures we believe this Government should be addressing. We will make his clear when we meet with the DETR in June'.
A key principle of the HMO licensing scheme is that it should be cost effective and not impose unnecessary bureaucracy, said the consultative paper.
One reason is that landlords 'may seek to recover licence fees and costs of improvement through higher rents where market conditions allow'. This, in turn, could 'impact on housing benefit expenditure'.
This, in part may be what is behind DETR guidance to local authorities on application of HMO standards under the current rules. These standards were never intended to be binding in all circumstances, said the Department. Application should be 'goal based and related to risk'.
This means all options for eliminating risk should be considered along with the cost and practicability of each. 'The standard of management by a landlord can be one of the more important factors', it said.
Also the financial position of the landlord should be taken into account. 'Clearly matters which expose residents to significant health and safety risks need to be dealt with promptly but authorities should consider carefully the timescales for carrying out other less pressing improvements'.
 

other artilces from the June / July 1999 issue

• Bottom line reality
• In brief
• New calls for reform of housing benefit
• Most shared houses will be regulated
• Landlord is unable to recover costs
• Manchester has lowest prices