A new property licensing scheme has been introduced for buy-to-let landlords operating in the London borough of Barnet. This follow the decision made by the council’s housing committee earlier on the year to raise more money at landlords’ expense.
The scheme, which started on Tuesday 5th July, applies across the borough and applies to some HMO’s containing four or more people that are not related.
Licensing
This additional licensing involves residential properties more than two storeys high, flats on the second floor or higher and owner occupied properties with four or more inhabitants.
What’s more, the scheme includes ‘section 257 HMO’s’, which are buildings that have been converted into self-contained flats and meet specific criteria. However, this aspect of licensing only applies to three storey buildings where the building and flats are owned by the same person.
According to Barnet Council, there are almost 6,000 HMOs in Barnet, of which almost 3,900 will need to licensed. There is strong support for the scheme, with 75% of those consulted giving their approval to the changes. However, less than 20% of this support came from landlords and letting agents, with the bulk of the support coming from tenants, residents and further organisations.
New HMO licensing scheme for landlords in Barnet
Fees
Landlords who apply for a license within three months of the scheme declaration will be eligible for a five-year term. Any applications received after this date will only be eligible for a one-year licence.
Fees will also rise, with five-year terms commanding £1,008 for five people. The same one-year licence will cost £665.
Barnet council leader Richard Cornelius noted, ‘there is no doubt that well managed HMO’s have an important role to play in helping meet our housing needs. From research we know though that people living in HMOs can be vulnerable and at increased risk of being exploited by landlords. Our recent survey of people living in HMOs was a cause for concern.’[1]
‘For these reasons we are taking action to help drive-up standards of HMOs across the private rented sector to encourage good landlords and crack down on rogue landlords who expose their tenants to unnecessary health and safety risks through substandard accommodation,’ Cornelius added.[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2016/7/new-licensing-scheme-to-cost-landlords-upwards-of-650-a-year