Industry News


Landlords warn that Renters Reform Bill is not fit for HMO properties


P


latinum Property Partners (PPP), a UK-wide network of professional HMO landlords, has urged the Government to reconsider the


impact of proposals in the Renters Reform Bill on multiple occupancy properties. Some of the measures set out in the white paper


will have a significant detrimental impact on shared households if implemented, potentially deterring HMO landlord investment and denting the supply of such affordable accommodation for tenants. Although the Bill specifically exempts purpose-


built student accommodation, there is no clear mention of excluding professional or student Houses in Multiple Occupation (HMOs). Among the changes, set to come into force in 2023, is the abolition of Section 21 ‘no fault’ evictions, a ban on fixed-term tenancies and giving tenants the right to request a pet. For professional HMOs, where three or more unconnected people rent individual rooms and


share communal spaces, none of these proposals make sense, claims Emma Hayes, Managing Director of PPP. “A few of the key areas of the proposal are simply


unfit for HMO landlords and tenants and will cause serious problems to arise if exemptions or amendments are not made,” she says. “We’re all for a fairer PRS, where tenants can


be assured that their accommodation will be of a certain quality and that they won’t be evicted for speaking up, but these measures will not work in a shared living environment.” When it comes to introducing periodic tenancies,


this not only removes any security of medium to long-term income for landlords in any buy-to-let property, but will discourage HMO landlords in particular to cater for tenant requests. Ms Hayes continues: “As all our professional


HMOs are fully furnished, it’s not unusual to receive specific tenant requests, perhaps for things like


The capital is home to a quarter of the nation’s HMOs


Tere are nearly 56,000 HMOs registered across England, with 13,528 of these found in the capital, meaning that London alone accounts for 24 per cent of the national total. Te East Midlands is not far behind, where a total


of 10,737 HMOs sees the region account for 19 per cent of the national total. Te South West (16 per cent), the South East (12) and the West Midlands (10) also account for double-digit market shares of the nation’s HMO market. With 715 HMOs, the North East is home to just one per cent of the nation’s HMO housing stock.


When it comes to current HMO investment


opportunities there are 886 such properties currently listed for sale across England. Te south east accounts for almost a quarter of stock, with the 210 HMOs currently for sale equating to 24 per cent of total listings. Tere are 125 HMOs up for sale across the East


Midlands, equating to 14 per cent of total market stock, with the North West (13), Yorkshire and the Humber (12), South West (11) and West Midlands (11) also ranking high. Founding Director of Revolution Brokers, Almas


additional bike sheds or an orthopedic mattress. But if that tenant were able to leave on two months’ notice at any time, it’s unlikely our landlords will risk the additional investment.” PPP claims that there is no way HMO landlords


could reasonably consent to tenants having pets in shared houses. “Te proposals state that landlords may ask


tenants to take out pet insurance and that this will not be a prohibited payment under the Tenant Fees Act 2019,” says Ms Hayes. “However, pet insurance only covers the health of the animal, so what the paper should actually state is pet liability insurance that may, or may not, cover wear and tear caused by pets. “For HMO landlords, having to scrutinize


each insurance policy per tenant and then taking it in good faith that they will recoup costs that would be paid directly to the policy holder is not feasible.”


Uddin, commented: “When it comes to the HMO capital of the nation, London continues to dominate the market and it’s easy to see why. “Te capital is home to the greatest abundance


of stock providing a superior level of choice to investors. Tis high level of stock has been driven by the consistent demand for multiple occupancy rental properties from tenants and while initial investment costs may be higher than elsewhere across the country, stronger wage levels allow for a much stronger return where rental income is concerned. “As the nation’s capital, there is also a revolving


door of tenants, both domestic and international, moving to London to live and work. As a result, void periods are also far lower which again helps to maximise returns.”


Unregistered gas installer fined after failing to answer questions from HSE inspector


A plumber who was suspected of having undertaken dangerous gas work while unqualified to do so, was fined for failing to answer questions put to him by a Health and Safety Executive inspector. In February 2020 Luke Rodgers was alleged to


have carried out unlawful gas work to replace a boiler at a house in Tingley, Wakefield. Te new boiler was leſt in such a dangerous condition that a Gas Safe registered engineer who attended the house had to make it safe by disconnecting it from


the gas supply. During a HSE interview under caution,


Rodgers claimed to have only been hired to do the installation work up to the point where it would then be connected to the gas supply. He claimed that he had arranged for a friend who was qualified to complete all the gas work. Rodgers also stated that another friend had assisted him with general labouring at the property. During the interview, Rodgers was


unwilling to provide the identity of either people 20 | HMMOctober/November 2022 | www.housingmmonline.co.uk


which is an offence as it prevented the inspector from following reasonable lines of enquiry as part of the investigation. At Huddersfield Magistrates’ Court Luke Rodgers


of Chapel Street, Wakefield, West Yorkshire pleaded guilty to breaching Section 33(1)(e) of the Health and Safety at Work etc Act 1974. He was fined £583 and ordered to pay £1,500 in costs. Aſter the hearing, HSE inspector David


Beaton said: “Te defendant blatantly failed to comply with a requirement under the Health and Safety at Work (etc) Act 1974. Tis prosecution would not have happened had the defendant provided the information. “Hopefully, this will send a warning to others


that failing to comply with Her Majesty’s Inspectors while they exercise their lawful powers will not be condoned by the HSE.”


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