I've just been reading through the report found here: https://www.nrla.org.uk/news/select-committee-throws-its-weight-behind-nrla-plans
Room Only HMO rentals generally have a MUCH higher turn around of tenants than your standard rental yet there never seems to be categorisation with the policies to reflect this. They are like stepping stones for younger individual professionals rather than long term family lets. Yet they are faced with the same policy primarily designed to prevent families being made homeless.
It is quite clear recommendations are being put forward to the Government that will be detrimental to Room Only HMO Landlords. Room Only HMO tenants do not require a large amount of time or cost to move properties and in these HMOs you will generally only have individual professionals in each room so should the Landlord decide to serve a Section 21 (something only done as a last resort) the tenants have ample time to find somewhere else and the move is small.
I haven't had a chance to read through all the recommendations yet.
Looking at some of the recommendations from the report:
"We recommend that the Government:
• increase from six months to one year the period at the start of a tenancy during
which the landlord may not use either ground;
• increase the notice period from two months to four months, to give tenants time to
save up for moving costs and find alternative accommodation;
Reforming t 58 he Private Rented Sector
• increase from three months to six months the period following the use of either the
sales ground or the occupation ground during which the landlord may not market
or relet the property; and
• in the case of the sales ground, encourage landlords to sell with sitting tenants—for
example, by requiring the property to be advertised for sale with sitting tenants for
six months before an eviction notice can be served. (Paragraph 47)"
These suggestions might seem reasonable for a Landlord renting a property out to a family, but they make much less sense for a Room Only HMO Landlord. Room Only HMO Landlords are not displacing families on the street when they have to carry out an eviction, there is minimal damage done in this regard. Yet these recommendations and many others which I have yet managed to read through, are just complicating management massively.
It is about time there were policies made specifically for each time of letting that accurately reflect the operational processes rather than trying to hit every type of rental with the same legislation.
Most people do not wish to buy a Room Only HMO property (mainly because of how badly affected it is by blanket regulations). So suggesting increases on notice periods, increases on the amount of time before they can market the property, requiring a property to be advertised with sitting tenants for 6 months before eviction notices can be served.... All of these things are going to make selling a Room Only HMO take way longer than it should otherwise.
Pretty much every suggestion will hit Room Only HMO Landlords the most. It is already an administration nightmare keeping up with HMO Licence regs, all the documentation, the ID checking, the Data protection for every single tenant that comes and goes. We are forced to run these rentals like well oiled businesses yet get taxed on finance like it is our personal finance and not an expense. It is truly becoming hard to keep up with all of it.
I ask NRLA Chief Executive Ben Beadle and the NRLA Campaigns and Policy teams to please CONSIDER the different types of rentals when making their recommendations. Room Only HMO Landlords are clearly not being considered at all.... there should be different policies for each type of rental that will work well for both landlords and tenants.
HMOs are housing multiple individuals and are one of the most important drivers of economy by allowing young professionals to come into Cities and work with affordable living. It is time they are properly considered with future policy. These recommendations are terrible.
You've got legal law abiding HMO Landlords who are all licenced and keeping everything in good order, never having issues with tenants, being overcome with regulation and costs. The next thing on the list is "making tax digital" which means landlords earning over 50k a year must report the profit/expenses every quarter to HMRC. It's just more and more hurdles designed to find the rogue landlords that make the lives of the law abiding ones simply miserable.
I guarantee older private landlords aren't going to keep up with it anymore without a lot of help which will cost them a lot. All while paying tax on 80% of the finance costs.
