Come the 1st October the Royal Borough of Greenwich are bringing in a form of Landlord licencing which seems to be “under the radar” of most landlords. Under The Housing Act 2004 the government gives each council the power to introduce such legislation locally!
If you are renting your investment property to three or more unrelated individuals then your property will be classed as an HMO and you will need to pay a licence fee to the council and, with the licence, each landlord will have to follow a set of conditions they MUST adhere to. THIS WILL OPERATE IN THE WHOLE OF GREENWICH BOROUGH.
The fees will be £377 per habitable room (i.e bedroom) but there is an “early bird” discount and it is even cheaper if you use a regulated agent – such as Conran Estates who are ARLA regulated! Each licence is for a five-year term. The owner is wholly responsible to obtain a licence (not the managing agent) and it will be a criminal offense for non-compliance.
An example would be, if you rent your two-bedroom flat to a couple and their friend, this is classed by the council, as an HMO and you will need a licence and further stringent conditions will need to be adhered to!
I would question if this is the first step to a full licencing scheme which is what Croydon Council have done in recent times. Who knows, only time will tell!
Conran Estates really understand Property and if you want a free assessment whether you are looking for a new management company, embarking on your first rental property or just for some straight-forward and friendly advice then do contact us or email at: email@example.com – we are only too pleased to help!
We really are a friendly bunch!