Of those landlords who were aware of the new licensing requirements, 44.2 per cent became aware as a result of media coverage of the regulations, whilst a diligent 21.6 per cent of landlords became aware of HMO licensing requirements through their own research. Local authorities, who are to be responsible for implementing many of the new rules, were the least cited source of information about HMOs, just 11.8 per cent of the landlords surveyed had been informed via their local authority.
Impact of HMO regulation
Landlords who are aware of the new HMO regulations are adopting a responsible approach to the forthcoming changes, and of those landlords with properties that are classified as HMOs, almost 40 per cent are confident that they already meet the requirements of the new rules.
However, there is evidence that the implementation of HMO licensing may create upward pressure on rents. 48 per cent of landlords with HMOs in their portfolios said that it may be necessary to increase rents to cover the cost of ensuring that their properties were compliant with new rules.
65 per cent of those landlords with HMOs in their portfolios said that they arrange their lettings using one agreement per property rather than using an individual agreement for each unrelated tenant.
Nicola Severn, marketing manager at Mortgage Trust, concluded: "The good news is that a significant proportion of those landlords who are aware of the new HMO regulations and who own HMOs already comply with regulations. However, our survey also highlights some cause for concern. A large number of landlords are totally unaware of the new regulations, and media coverage has so far proved the most prolific source of information for landlords. However, local authorities are going to play an important part in the implementation of HMO regulation, and they need to take a greater responsibility for increasing awareness among landlords."
