This blog follows the property market in Northampton with a particular emphasis on buy-to-let. On here you'll find general commentary about the market, plus properties that may represent decent buys. I own a large estate agency in Northampton and am myself a landlord with an established portfolio. If you're looking to invest, but are unsure what will work best, I'm happy to offer a (free) second opinion. If you have a property to sell I can help with that too! Email richard.baker@belvoir.co.uk

Friday 6 December 2013

Keen to pay £400 for a license to rent your property?

This could be a really significant issue for landlords in Northampton and people should read carefully. 

  • Northampton Borough Council is consulting on possible changes to the way they regulate houses in multiple occupation (HMOs). 
  • Currently they only take a particular interest in HMOs that are subject to mandatory licensing - these properties have 3 floors and are inhabited by 5 or more adults. 
  • Going forward they seem keen to look more generally at HMOs - this could include any property that's inhabited by 2 unrelated people. So the 2 bed house I own in Semilong which is let to a Polish couple and their friend could appear on their radar and require a license - even though it's just a regular domestic property.
  • This covers most town centre areas. 
  • The suggestion from the Council is that a 5 year license for a single property could cost in the region of £400, payable by the landlord. Plus presumably any work the Council wants done at the property - and they have a reasonably amount of flexibility to demand what they want. 
  • As you'll see from their consultation paperwork, they argue that they are trying to improve standards in the private rented sector. 
  • As a landlord, I see this more as an exercise in regulation for the sake of regulation. A few jobs will be created at the Local Authority and paid for by private landlords. 
  • Whilst I'm sure there are issues in parts of the private rented sector, the Local Authority is unlikely to make inroads into resolving with this by licensing the stock of regulated lettings agents - 99% of what we have on our books is qood quality and perfectly legally compliant. The other 1% we just haven't found out about yet and will deal with when we do. It will be the same at other well run agencies in town. If the Council wants to find rogue landlords I'd argue they are looking in the wrong place.
  • If the Local Authority wants to make some easy money at landlords expense without having to do too much work, licensing the stock of regulated agents is of course a good idea!

Further information on this subject can be found by clicking here.

Landlords who feel strongly about this matter may wish to take part in the consultation!

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