The comparison website said the number of landlords who have invested in licences fell from 9 per cent to 6 per cent during the last three months, according to figures from the Association of Residential Letting Agents (ARLA). It added that the National Association of Estate Agents’ (NAEA) also found that landlords are reducing the number of tenants in their properties in order to avoid the need for HMO licences.
Licence fees range from £150 to £1,750 across the UK, with the cost being dependent on the local authority, the website said.
Commenting, Lee Tillcock, business editor at Moneyfacts.co.uk, said greater clarity is needed to make the HMO process more transparent and fair.
He said: “Fears of a major impact on the sector were always over-played as HMOs constitute a relatively small proportion of the lettings market. Licence fees are supposed to do no more than recoup their licensing costs, so why are some local authorities charging 10 times more than others? The procedure and enforcement of HMO licences differs from council to council, each ensuring compliance through their own guidelines. It has left landlords in a state of confusion.”
Paul Hunt, head of marketing at Platform, said the HMO regulation must be adapted to address current problems. He said: “It is clear that the HMO legislation is confusing and not consistent across councils and this will undoubtedly mean that landlords will be less likely to own property that falls with this legislation going forward. Any efforts that can be made to apply this legislation consistently across the country should be welcomed.”
