Feb

Council green lights more HMO licencing despite proof on higher rents

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Nottingham councillors have voted through a contentious additional HMO licensing scheme.

The current scheme, covering central areas of the city, will soon come to an end and the council plans to introduce a new citywide scheme in January 2024.

It says this would prevent landlords who choose not to comply with licensing and standards – ineffectively managing their single occupancy properties – from trying to convert them to small HMOs where the “spread of harm could potentially be worse”.

The authority insists that its current additional scheme has had a positive impact on HMOs, including tackling problems with waste management and anti-social behaviour.

There are 3,230 smaller HMOs in the proposed area and 4,628 reports of issues were made against them between 2019 and 2022, a rate of 1.43 per property, according to the council which will now run a 12-week consultation. Proposed standard fees are £1,474, and £1,118 for accredited landlords.

Increase rents

Landlord group EMPO is opposed to the additional scheme as well as the new selective licensing scheme, which has caused many Nottingham landlords to increase rents, an external auditor’s report has found.

Audit consultancy Grant Thornton was asked to investigate concerns over value for money for both tenants and landlords, and although it says no formal audit action is needed, it has recommended addressing problems in the online application process, the scheme’s footprint and whether it should be better targeted, as well as whether inspection targets can be achieved, according to the Westbridgford Wire.

The current selective scheme is due to end in July and the council has drawn up a replacement, which EMPO warns would prompt many to quit the sector.

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