COMMUNITIES AND LOCAL
GOVERNMENT News Release (091) issued by The Government News Network
on 9 April 2008
A new review aimed
at improving the management and conditions of people living in
Houses in Multiple Occupation (HMOs) has been launched by Housing
and Planning Minister Caroline Flint today.
Concerns have been raised about the so called
'studentification' of university towns with over
concentrations of HMOs. Despite the clear economic benefits of
students their dramatic growth in recent years (now almost 2.5m)
has seen housing problems increase in some towns.
Towns and cities including Nottingham, Southampton, Loughborough
and Bristol have reported more empty properties during the summer
meaning shops, businesses and pubs simply close down creating
'ghost towns'.
An over concentration of houses of multiple occupation in one
area can have a negative impact on the neighbourhood and local
public services. Student turnover is typically high, 52% in Leeds
for example, which can affect the sense of community as
increasingly student landlords opt to concentrate properties ever
closer together in university towns.
Universities are already looking at ways to improve the
situation. Many have invested heavily in new student halls,
created community relations officers and Loughborough University
now requires their students to sign a code of conduct.
Students typically want to rent shared housing. New government
rules mean they should be properly licensed to guarantee minimum
living conditions and management standards.
A new survey on private landlords published today finds the
licensing system is working well - over three quarters of
landlords that let Houses in Multiple Occupation have now applied
for licences.
The new review launched today will identify what more the
planning system can do to create more effective management of HMOs
for all tenants. It will feed into the Private Rented Sector
review announced in January which is already looking into
standards of accommodation and the rights and responsibilities of
landlords and tenants.
Caroline Flint said:
"It is not acceptable that in too many areas people living
in HMOs and local communities alike are having their quality of
life affected. We must have balanced, sustainable communities
where settled communities can live side by side with those in HMOs.
"The new HMO licensing scheme and tenancy deposit schemes
are already making a difference but I want to know what more we
can do to provide the right housing in the right place, guarantee
proper living conditions for all, and ensure our towns are places
people want to live and work in over the long term."
The new survey also found a quarter of all landlords have been
letting for less than five years. A third of these are individual
landlords compared to company landlords where over a third have
been in business for over 40 years.
Results also showed that individual landlords tend to offer
properties in a better condition than property companies. Two
thirds of landlords had carried out maintenance in the last year
with a quarter spending over £1000 but this has not always been on
the worst properties.
In a market that requires deposits in over 75% of properties
there was some reassuring news for tenants - over two thirds of
the landlords surveyed returned deposits in full. Over 50% of
tenancies ended because the tenant was moving and only 6% because
the landlords wanted the tenant out.
There is strong evidence that the new Tenancy Deposit Protection
Scheme is already helping tenants keep their deposits secure -
almost a billion pounds have been effectively safeguarded in the
first year. The survey showed that almost two thirds of landlords
were aware of the new scheme and 50% said they planned to use it
though in some cases landlords and agents were still holding the deposit.
Notes to Editors
1. The HMO review's terms of reference are available here http://www.communities.gov.uk/documents/housing/doc/termsofreference
2. The 2006 Private Landlords Survey is available here http://www.communities.gov.uk/publications/housing/privatelandlordsurvey
3. Houses in Multiple Occupation (HMOs) are a key source of
housing for significant and often vulnerable groups of people in
society. A wide range of residents choose to live in HMOs at some
point this includes, migrant workers and young professionals. HMOs
are often in poor condition and represent a much higher risk to
the safety and welfare of the occupants. Poor management and the
presence of unscrupulous landlords can also increase the
likelihood of health and safety risks developing for tenants.
4. The government set up a national licensing system aimed at
improving the controls on HMOs and ensuring adequate management
standards in the properties without reducing the supply of
accommodation. The Housing Act 2004 introduced licensing of HMOs.
The provisions relating to the licensing of HMOs and the
discretionary licensing of other private rented residential
accommodation have been in force since 6 April 2006. Breach of a
licence condition is an offence subject to a fine of up to £5,000.
Letting or managing a property, without a licence, or permitting
the property to be occupied by more persons than is specified by
the licence is a criminal offence, subject to a maximum fine of £20,000.
5. All HMOs, regardless of whether they are licensable, are
subject to management regulations. The regulations impose duties
on the manager of the property to ensure that minimum safety
requirements are met, the HMO and facilities within it are
maintained and in reasonably good order and that fire
precautionary equipment is properly maintained. A breach of the
management regulations will result in a fine of £5,000.
6. Further information on the Tenancy Deposit Scheme can be found
at: http://www.communities.gov.uk/housing/rentingandletting/privaterenting/tenancydepositprotection/overviewoftenancydeposit/
News Releases: http://www.communities.gov.uk/newsroom