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Shawbrook helps investor with £3.35m refinance on nine HMOs

Shawbrook partnered with Sirius Property Finance to help an experienced investor remortgage nine HMO properties worth £3.35m.

The properties were purchased using bridging finance in June 2018, however as the term was coming to an end the client wished to remortgage quickly to avoid any fees.

Robert Collins, co-founder of Sirius Property Finance, said: “Along the way we had to liaise with the valuer to have the original reports readdressed and to clarify the net rental position as they had originally used a 20% discount that affected affordability.

“However, due to the partnership between me, the client and the team at Shawbrook we were able to provide a solution within the short time frame. It was a fantastic team effort and I’m delighted that our partnership with Shawbrook had a positive outcome for the client.”

Peter Turner, senior development manager for Shawbrook Commercial Mortgages, added: “The turnaround on this case was tight but the teams from both Sirius and Shawbrook worked together to re-mortgage the nine HMOs of the customer, avoiding the bridging finance penalties.

“I’m delighted we were able to help with this case and look forward to continue working with our newest strategic partner.”

Using Shawbrook’s LRI2 product on a 10-year, interest-only term, the team worked with Sirius to ensure the deal was completed in time.

The AIP was submitted on 6 November and the case was completed before Christmas ensuring that the bridging finance was repaid within the term and allowing the client to avoid over-run penalties.

Source: Mortgage Introducer

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Fife Council seeks views on future of HMOs

Fife Council is seeking views on the future accommodation needs of university students and St Andrews’ residents in the town.

The issue of HMOs (houses in multiple occupation) has caused much debate in St Andrews over the years, particularly how best to ease pressure on the over-crowded housing market and meet demand from all sections of the community.

Now the local authority is asking for views on a change to its housing policy which would limit the number of new HMO licenses granted in the town.

Convenor of the council’s community and housing services committee, Cllr Judy Hamilton, said: “We’ve previously looked at different ways to reduce pressure on accommodation, particularly in the centre of St Andrews. This included a moratorium on new HMOs in the central conservation area of St Andrews through planning legislation but unfortunately this hasn’t solved the problem.

“There are around 1,000 HMOs in Fife and nearly 860 of these are located in St Andrews. Across Fife the number of HMOs has grown by 8% in the last 10 years and 27% of all St Andrews residents currently live in HMOs.

“We’re now surveying the community with a view to changing our housing policy. Residents are being asked their opinion on options within the range of 0% (no further growth) to a maximum of 3% (limited further growth). The council’s preferred option is for no further growth based on information available at this point.”

Representatives from the Students’ Association and Residents’ Association in St Andrews were invited to speak at the last community and housing services committee meeting to inform the debate on the issue. Councillors then agreed in principle to introduce a strategic overprovision policy for Fife and to survey St Andrews residents on the detail.

Questionnaires will be distributed to St Andrews’ households from the end of January and a separate survey will be issued to local organisations and students.
The issue will be debated again at committee on April 11.

Cllr Hamilton added: “This is a major issue for the town and we will continue to work with the University to find long-term solutions that will meet the future needs of both students and residents.”

Source: Scottish Housing News

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‘Cost-cutting with a view to profit’: Letting firm fined for string of faults at HMOs

A letting company has been fined over a string of defects at its shared accommodation for vulnerable adults.

Salop Lets, based in Madeley, Telford, has been ordered to pay more than £43,000 after pleading guilty to 24 offences under the Housing Act 2004.

The company had previously tried to blame the problems on its tenants – vulnerable adults who lived in three houses of multiple occupation in Hurleybrook Way, Leegomery.

The defects included broken and damaged fire doors and incomplete and missing safety certification for the the fire alarm systems, Telford Magistrates Court head.

General faults such as broken showers, damaged kitchen units and broken or missing lighting units were also found, as well as emergency fire alarms and lighting being connected to a pre-paid metered electricity supply, meaning when the meter ran out, the emergency systems did not work.

The issues were brought to light following an inspection from environmental health and a fire safety officer from Shropshire Fire and Rescue Service.

An initial complaint was made back in February.

The court heard improvement notices had been served to ensure the properties were brought up to the required standard, but the work was either done to a poor standard or not at all.

In one instance the company installed a second-hand fire door claiming it to be new.

Prosecuting, Sarah Morgan, said: “Very little work was done during the operation of the improvement notices.

“I would draw your attention to the past history of the company and consider that they were cost-cutting with a view to profit.

“They were a professional management company. They chose to house vulnerable tenants but failed to manage the risks associated with this”.

The court heard that since 2015 housing benefit totalling nearly £1.5 million had been paid in respect of properties managed by Salop Lets.

The company was fined £31,500 and ordered to pay £11,462.07 costs and £170 surcharge.

Sentencing the company, district judge Rebecca Crane said it had fallen far short of the housing standards expected and had ignored concerns raised by Telford & Wrekin Council, adding that there was a risk of death or life-changing injury from the company’s failure to maintain fire alarms and fire doors.

Councillor Richard Overton, Telford & Wrekin Council’s cabinet member for housing and enforcement, said: “The safety of our residents is of paramount importance.

“That is why we are working hard to make sure that private rented housing is safe for tenants to live in.

“Earlier this year we set up the rogue landlord taskforce as part of our Better Homes For All package to improve housing in the private rented sector.

“This case highlights the vital work of this taskforce in keeping people safe.”

Source: Shropshire Star

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Hightown HMO plans rejected after residents warn of impact on their community

Plans to create a six-bedroom house in multiple occupation (HMO) in Wrexham have been rejected after residents warned it would tear their community apart.

Proposals were submitted to Wrexham Council to convert an existing house on Beechley Road in Hightown to accommodate a total of seven people.
However, after members of the authority’s planning committee carried out a site visit today, they chose to go against the advice of officers and refused the application. They were greeted at the property by members of the Beechley Road Residents’ Association carrying placards, including one which read ‘Don’t Turn Beechley Road Into A Ghetto’.

Neighbours raised a number of concerns about the plans, including issues over parking and fly tipping as a result of the six existing HMOs on the street.
They have previously presented a petition with 90 signatures against the development.

John Harding, chair of the association, said: “A line has to be drawn somewhere to ensure the quality of life of long term residents is maintained, and in our opinion this is where the line should be drawn.

“There has already been an adverse impact on house prices in the road as a result of decisions taken in the past by the planning department.

“This deterioration can only accelerate given the authority’s perceived plan of allowing properties in the road to become nothing more than cheap accommodation for short term residents and the problems they bring with them.

“We see this as a direct attack on our future and will do our utmost to prevent this from happening.”

After committee members returned to the Guildhall, they were told that the proposals complied with all of the council’s policies.

Chair Mike Morris warned that valid grounds would need to be found for refusal.

But several politicians voiced their frustration at the increasing number of HMOs, including the area’s councillor Graham Rogers, he said: “Having visited the site, and I know the site very well, my concerns are still on parking and the four spaces, the double yellow lines at a very busy junction, the speeds at excess of what they are supposed to be and 90 residents have signed a petition which we should take the cognisance of.”

He was supported by Cllr Paul Jones, who said: “It’s very disappointing that our planning policy and planning guidance is inflicting yet another HMO on a community in Wrexham. The area is not saturated with HMOs, but it’s going in the wrong direction. HMOs done in the wrong way cause considerable problems for that community.

“It will be the people in that community baring the consequences whichever way it goes.”

Cllr Rogers said the plans should be refused on the grounds of parking and access, despite being told the highways department had no issues.

His recommendation was backed by eight votes to four.

Source: Wrexham

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Could HMOs turn out to be not the golden goose that investors hope for?

It’s a funny old world. When I was at my busiest, the type of properties that investors now actively seek out were considered sub-prime and to be avoided.

Specifically, these include student lets, lets to sharers, sitting/assured tenancies and Houses in Multiple Occupation (HMOs).

A corollary of the rush into buy-to-let is that many now see BTL as a way of augmenting their income.

Certainly in London most of the ‘total return’ on BTL has come from capital appreciation, but elsewhere income has become important, and possible.

But as yields have suffered, especially in the last five years off the back of unprecedented and market distorting low interest rates, those seeking income have moved into alternative asset classes.

Many would say student housing has been over-played. However, we all know that many renters are now forced to share houses – which has made HMOs look particularly attractive.

This has not gone unnoticed by the authorities, which have brought in a raft of changes, including licensing schemes.

The result will be a step-change in the number of HMOs being registered – but is there a hidden issue here that doesn’t seem to be talked about?

An HMO has historically been considered as being worth less than a standard residential property, being valued up to 25% less.

Once designated as an HMO the local authority would resist the change back to residential because the new rooms within an HMO each count towards their precious number of available ‘dwellings’.

Indeed I used to do deals for clients where we’d buy a centrally placed property with an HMO use, then buy another in a less salubrious part of the same borough, transfer the use and hey presto, a significant uplift on the more valuable property was realised when a reversion to straight residential was granted.

Recently, I sat in front of a highly placed government official with some responsibility in the area of drawing up new legislation, and asked if the same rules would still apply, i.e. that change of use back to residential after a new HMO licence would be resisted – and they weren’t able to answer.

Anyone thinking of venturing into this area should carefully consider their options, or at least ask the right questions.

Losing a large chunk of capital value to gain a slightly higher yield might just be too high a price to pay.

Source: Property Industry Eye

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Houses of Multiple Occupation – the ultimate guide for landlords

Houses of Multiple Occupation are an area of growth for investors, with 43% of these landlords in acquisition mode. So what do landlords need to know about HMOs, and about the rules and regulations that govern them? We answer some the key questions here.

What is an HMO?

HMO stands for House in Multiple Occupation. An HMO is generally defined as any property (house of flat) occupied by three or more people comprising two or more households who share facilities (kitchen, bathroom and/or toilet).

Who needs an HMO licence?

Not all HMOs need a licence from the local authority.

There are however two types of HMO license that operate in England – Mandatory and Additional.

  1. Mandatory HMO licensing

    Mandatory HMO licensing is restricted to larger properties under Part II of the Housing Act 2004. This would be any multi let property with 5 or more occupiers creating two or more households regardless of the size of the building.

    Major changes to the rules and regulations around these properties came into force on 1 October 2018 and changed both the definition and some key conditions.

    Before this date, there were an estimated 60,000 properties across England which needed a mandatory HMO licence. Following the changes, upwards of 220,000 properties may now need a licence.

  2. Additional licensing

    Additional licencing, often called Part 2 Licensing, is a discretionary scheme that many local authorities have adopted to help regulate HMOs that are not covered by mandatory licensing.

    This varies from authority to authority, but typically includes smaller privately rented shared houses and flats, designed to capture multi let properties with less than 5 occupiers

    Simple Tip: If you are not sure if your property requires a licence, get in touch with your local authority as soon as possible to discuss it.

What kind of properties need an HMO licence?

Prior to 1 October 2018 landlords needed a mandatory HMO licence if the property was:

  • Three or more storeys high
  • Contained five or more pople creating two or more households
  • Contained shared facilities such as a kitchen, bathroom or toilet

The new rules bring many more properties into the mandatory HMO classification and the main changes are:

  • The removal of the three-storey rule
  • The inclusion of certain flats that are situated above or below commercial premises
  • New minimum room sizes.

What are the minimum statutory conditions for an HMO licence?

Since 1 October 2018 the minimum conditions a property has to meet include:

  1. Minimum bedroom size:

    The new statutory minimum requirement is 6.52 square meters or 10 square meters for HMO’s in which all tenants have their own bathroom but share other facilities such as a kitchen.

    Simple Tip: This is the MINIMUM requirement and local authorities may well insist on larger room sizes.

  2. Fit & Proper Person Test

    Landlords must undergo a Fit & Proper Person Test. They must not have convictions which might affect their suitability for the licence or have breached the landlord laws or code of conduct.

  3. New waste management obligations

    Landlords must also provide enough storage facilities to deal with the holding and disposal of all household waste. Landlords must comply with the scheme issued by the local authority (if one exists) for the storage and disposal of domestic refuse pending collection. A failure to comply with the scheme is a breach of the licence and a criminal offence.

  4. Alarms

    Landlords must install smoke and carbon monoxide alarms;

  5. Gas Safety

    Landlords must send the council an updated gas safety certificate every year

  6. Electrical appliances

    Landlords must provide safety certificates for all electrical appliances when requested.

Who might be caught out by the changes?

  1. Landlords who are operating HMOs that are only 2 storey or less, with 5 or more occupiers. Traditionally these Landlords would have been exempt from requiring a licence.
  2. Those running properties with smaller rooms may also have to reconfigure based on the new minimum room sizes.

I already have an HMO licence – do the new rules apply to me?

The new conditions will not apply to existing HMO licences – those issued before 1 October 2018 – until the current licence expires. In other words, if you already have a licence the changes will only apply when this is due for renewal. At renewal the new statutory conditions will apply.

Landlords who already have an additional or selective license but whose properties will now come under the extended scope of mandatory HMO licensing will need to contact their local authority to determine if they need to be migrated to a HMO licence or not.

I have an additional HMO licence – will the new conditions apply to me?

The new minimum room size conditions apply to all Part 2 or additional licences. That includes HMOs that are required to be licensed under additional licensing provisions as well as the mandatory licensing regime.

The new rules will only apply, however, once that licence expires and is renewed or if it taken out for the first time.

How long do landlords have to comply with the new conditions?

Landlords falling into the mandatory HMO licence criteria generally have a grace period of six months, from 1 October, to make changes to their properties so that they comply with the new conditions. That might mean reconfiguring properties, for instance to comply with minimum bedroom sizes. It’s recommended that landlords check with their local authorities to ensure the national approach has been adopted.

Simple tip: After this, those that do not comply will be subject to a fine of up to £30, 000 as well as possible criminal prosecution.

For those with licences issued before 1 October, an authority has no grounds to act against an existing license holder that is not compliant with the new standards. Landlords that do not comply with the new minimum room standards at the time of renewal will be given a notice period of up to, but most likely less than, 18 months to comply.

What are the penalties for failing to apply for, or meet, HMO licence conditions?

Landlords of HMOs that fall under the new definition – and do not yet have a licence – have committed a criminal offence by failing to apply for a licence or a temporary exemption before 1 October 2018.

Landlords can be subject to a civil penalty notice (fine) up to £30,000 or risk being prosecuted by the council and if found guilty given a criminal record, be fined an unlimited amount and/or ordered to pay court costs and a victim surcharge.

Simple tip: It’s worth noting that whilst the property is unlicensed, landlords cannot issue a Notice of Seeking Possession under Section 21 Housing Act 1988 to evict tenants.

How do you apply for an HMO Licence?

Landlords or their agents need to submit a licence application to the local council using the council’s application form. Councils usually ask for a floorplan of the property in addition to other supporting documentation.

You will also need to pay an application fee which is normally non-refundable. These vary but the average licence fee is around £1,000 for a first-time application. Renewals are normally less than the first-time fee.

A licence will normally be granted for a five-year period.

What if a landlord has a problem getting an HMO licence?

A local authority will normally only refuse to grant a licence if it has serious concerns regarding the HMO, its management, or the landlords inability to pass a fit and proper person check.

Councils will try to resolve any problems with the applicant before refusing a licence. Resolution of such problems may include proposing a different licence holder or imposing certain conditions.

Landlords can disagree with the conditions set out in a licence, for example, those which state a maximum number of occupiers or a requirement for work to be carried out. The council must consult with the applicant, giving its reasons and allowing them a period of 14 days to make their case.

A right of appeal to a residential property tribunal is available to HMO licence applicants if they disagree with a council’s final decision.

Is an HMO right for me?

Carl Agar, landlord, letting agent, developer and Chief Exec of the Home Safe licensing scheme, talks about some of the pros and cons of running an HMO in this video.

Source: Simple Landlords Insurance

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Understanding HMOs…

If you have at least three tenants living in a property and they share a toilet, bathroom or kitchen facility, then the property is a House in Multiple Occupation (HMO). This means that special rules will apply to the property and it may need to be licensed by the council if it has three storeys or more with five or more occupants. Though it should be noted that local authorities do have the power to impose additional HMO Licensing on other, smaller types of HMOs.

THERE ARE SOME EXCEPTIONS, THOUGH…

Certain types of properties are exempt from licensing. Examples include:

• Two-person flat shares, which is a property that is lived in by no more than two ‘households’ each of which consists of one person.
• A property where the landlord and their household lives with up to two tenants
• Buildings occupied entirely by freeholders or long leaseholders

WHAT IF I HAVE A FLAT?

Flats have special provisions and a block of converted self-contained flats will not require an HMO licence, and a block of purpose-built flats can’t be an HMO as a block, but as individual flats can fall into the HMO category.

DOES IT MATTER HOW MANY OCCUPANTS LIVE IN THE PROPERTY?

Yes, any part of a building that is occupied by two people cannot be an HMO. For the property to meet HMO requirements, there must be at least three people involved.

IS THERE A SIMPLE WAY OF IDENTIFYING AN HMO?

In short, if your property includes the sharing of a toilet, washing and cooking facilities by three or more unrelated people in two or more separate ‘households’, which can be formed by just one person, then it’s likely that the property is an HMO.

If your property is in a block of converted self-contained flats, or mixed accommodation, and there are three unrelated people living there, it can still be an HMO despite there not always being a sharing of the washing and cooking facilities.

NEW RULES FOR HMO PROPERTIES

From October 2018, professional landlords investing in HMOs will need their properties to meet a new level of standards:

The new HMO rules are covered by The Licensing of Houses in Multiple Occupation (England) and can be read here. This was agreed by parliament on February 23rd and will come into effect across England this year on the 1 October 2018.

Under the new rules, bedrooms must be a certain size, with double bedrooms being at least 10.22m2 and bedrooms for under 10s at least 4.64m2. If the bedrooms are smaller than this, they cannot be used as sleeping accommodation.

The new rules will also see the definition of an HMO changing, with more landlords needing HMO licences and smaller properties also needing a licence.

Don’t let this put you off if you are thinking of investing into this market – HMOs can still attract higher yields than other types of buy-to-let investment properties and, if you are considering entering the market, using a mortgage broker that has access to a wide panel of specialist lenders is imperative.

Source: Property Forum

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Is this the next property scandal brewing – and are investors being sold too many HMOs?

Are developers selling a dream with HMOs or a future nightmare?

As an agent with 15 years in the letting industry, I used to find that when there was a manageable amount of this type of accommodation on the market you could fill the rooms with decent tenants for a reasonable rent.

Over the last few years, companies have sprung up everywhere offering to source, renovate and manage HMOs – with promises of huge returns and future riches.

The reality we are seeing is very different. In my area thousands of rooms have been created, but for a market of maybe just hundreds of people.

This has resulted in:

  • Room rates plummeting.
  • Many unfilled rooms.
  • Lots of problems due to these houses not being built to home this amount of people.
  • High maintenance and annual refurbishment costs.
  • Anti-social issues.
  • High level of maintenance and tenant issues.
  • Quality tenants shunning HMOs due to bad experiences with shared houses.
  • The quality of the HMO tenants is dropping in line with the prices.
  • Many landlords saying that for the first time they are really struggling to find tenants for their HMOs.

This has had a knock-on effect meaning that apartment/flat prices are tumbling due to lack of demand as HMOs have flooded the market and lured in tenants who would otherwise have had their own apartment.

In turn, apartment prices have had to drop to try and compete with HMO prices.

It is the same with the student market as shared houses have taken a real bashing this summer.

The only winners here are the developers who are selling a dream that is not a reality.

They get paid handsomely for sourcing and renovating, so tenanting and managing is just a nice little bonus.

I worry for landlords who have sunk all their money into HMOs, as if the rent does not cover the mortgage you will find an HMO very difficult to sell.

The Government’s attack on landlords financially has created this market as developers have seen the opportunity to sell a dream – but that is what it is – of making thousands of pounds each month in rent from converted terraces.

HMOs have created an over-supply of rental accommodation in our area, with the level of demand not having risen to match it.

To me, this has the feel of the property clubs of 15 years ago that were selling similar dreams with promises of sky-high rental returns that in reality were unachievable.

The end result was that thousands of investors had their properties repossessed and ended up going bankrupt. I have a bad feeling we are going to see this again in the next few years.

The only winner I see in the long run is the developer.

As always, the freehold family homes have performed well in the rental market and this is the property type we advise all of our investors to look at.

I would be intrigued to see what other agents’ thoughts are on this.

I am sure that in places like London, demand will always outstrip supply, but I do not think this is the case for the rest of the country.

* Bill Rockett owns Rockett Home Rentals, in Newcastle-under-Lyme

Source: Property Industry Eye

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What does the future look like for HMOs?

On top of the punishing stamp duty and section 24 changes of 2017, HMO landlords are now being clobbered with a national extension of HMO licensing, navigating a proposal to introduce three-year tenancy agreement. Is the future bright? Is the future still HMO?

Proposed three year tenancies

 Cities up and down the country have bid their student cohorts farewell for the summer and left (some) landlords picking up the rubbish or the one-year-only appliances slapped with the post-it note “works fine but we don’t want it!” – another toaster is added to the tip collection.

And it’s a busy time for student landlords to say the least. I recently drove down the street in Sheffield where we own several HMO’s and it looked apocalyptic! The strewn rubbish of hastily vacated digs of now ex-occupiers heading off to Ibiza, festivals and a break from university.But new government proposals aim to force landlords to offer tenants a minimum three years contract – with tenants able to leave earlier (break clause) should they wish.

The proposal comes at a time when home ownership is at its lowest in 30 years, some 14.3m households (of a total 22.8m) are owner occupied in England (62.9%), according to the English Housing Survey, produced by the Department for Communities and Local Government (DCLG). According to the same report, the private rented sector now accounts for 4.5m households, double the 2.3m in 2004, or 20% of total households as opposed to 10% of total households back in 2004.

While home ownership levels have remained relatively unchanged in the last three years, the private rented sector is a different story, particularly when paired with the latest demographics seeking entry to the current property market.

In 2005-06, 24% of 25-34 year olds were privately renting, that figure is now 46% in 2017. In the same period, 25-34 year olds buying a home with a mortgage dropped from 53% to 35%.

The proposal, which seeks to lengthen the common six-month to 1 year tenancy agreements (currently thought to be around 80% of all contract lengths), looks to give tenants more control, security and longevity in their houses.

Extensions to mandatory HMO licencing scheme – October 2018

 While the UK housing market depends on the private sector investing in houses, it is also bumping up price inflation with knock on economic effects. As a measure, the government has sought to curtail the tax relief that BTL investors have enjoyed, forcing many out of the market and reducing the sector to a sustainable size. But there’s more to come. Long in the cross-hairs of government, the HMO sector has seen particularly heavy regulation with an extension to mandatory licensing requirements, tightening up on the number of storeys loophole as well as new minimum room sizes (see below).

That could be as many as 177,000 HMOs becoming subject to mandatory licensing in England, according Residential Landlords Association research.

From October 2018, the main change to HMO legislation will be the removal of the three storey rule. In the majority of cases, a property occupied by 5 or more individuals forming two or more households will become licensable, irrespective of the number of floors in the property. Landlords will also have to adhere to a new minimum room size standard. Especially for landlords with attic rooms, it’s important to note the ‘size’ will only be considered where there is 1.5m in celling height.

  • Minimum double room size: 10.22sqm
  • Minimum single room size: 6.51sqm

There will also be a mandatory requirement for landlords to adhere to council refuse schemes to ensure that HMO properties have adequate waste management facilities.

Will the three year tenancy proposal affect HMO landlords?

There shouldn’t be a direct effect. The proposal is considering making student accommodation exempt as the sector clearly follows academic turnover and, indeed, the higher education sector relies more heavily on private accommodation than many others – this is already the case in Scotland. There is less clarity around the young professional house share market though.

Of more concern is what it does to other BTL landlords. Those who have not already sold off part of their portfolios to afford mortgage repayments following the newly introduced tax pressures, could now face even greater reluctance from lenders.

David Smith of the Residential Landlords Association responded cautiously to the new proposal: “We would warn against making it a statutory requirement to introduce three year tenancies. Many tenants simply do not want to be tied to a property long term.

“It is vital that the market is able to provide the flexibility that many need in order to swiftly access new work and educational opportunities.” says Smith.

While the proposal allows landlords to increase rent once a year to reflect interest rate changes, it does not however provide a repossession clause. This may make many lenders reluctant to shoulder the added risk (should the landlord default and the property not repossessed for three years) and may lead to even higher interest rates on Buy-To-Let mortgages.

This could mean more BTL landlords dropping out of the market altogether or, more landlords turning to the exempt sectors, such as student accommodation, actually making the HMO market more competitive.

Source: Property118

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New powers to tackle rogue landlords unveiled

Private sector landlords operating in Cheshire East are being warned of tough new penalties to crack down on poor housing standards.

Cheshire East Council has amended its housing enforcement policy to include new powers, which could see the most serious offenders banned from letting properties altogether or entered on to a national database of rogue landlords.

In addition, landlords will have to ensure their properties comply with a minimum energy efficiency standard or face a fine of up to £5,000.

These new powers add to the enforcement options already available to the council, which include civil penalties of up to £30,000 and rent repayment orders for certain housing offences – both of which were added to the policy in August 2017.

Since last year, the council has issued fines totalling almost £25,000 against five landlords, all of whom had failed to apply for a licence for a house in multiple occupation (HMO).

Councillor Ainsley Arnold, Cheshire East Council cabinet member for housing, planning and regeneration, said: “There are many responsible private landlords in Cheshire East, who offer well-managed accommodation that is of a good standard, helping to ensure the welfare of tenants.

“Disappointingly, though, there are a small number who either do not understand their legal responsibilities when providing housing or deliberately ignore their duties.

“This council is committed to challenging poor-quality housing and will proactively work with landlords to improve standards, where they fall short.

“But, where landlords fail to take the necessary action, we will make full use of the enforcement options available to us.”

The updated housing enforcement policy now includes a guide for landlords of HMOs, outlining the amenities, property and management standards expected of them and details a stronger ‘fit and proper person’ test.

It also includes the revised definition of HMOs that require a licence. From 1st October, all HMOs where there are five or more occupants – living in two or more separate households – must be licensed.

Cllr Arnold said: “Operating without a licence is a criminal offence and landlords could face an unlimited fine. That is why we are urging landlords of HMOs, who have not already done so, to apply for one as soon as possible.”

Source: Alderley Edge