In a bid to enhance the management and living conditions for tenants residing in Houses in Multiple Occupation (HMO), local councils are pushing forward with licensing schemes, marking a notable surge, according to recent data.
HMOs, characterized by properties shared by three or more non-related individuals, often sharing facilities like kitchens, sinks, or toilets, have been a focus of attention for councils aiming to improve standards. However, critics argue that some councils are exploiting these schemes as a means to bolster their financial reserves.
The year 2024 has witnessed the initiation of six new licensing schemes, with Luton introducing additional and selective schemes this week. Projections suggest that this year is poised to surpass the record set in 2023, which saw the implementation of 32 new schemes, including 19 selective and additional licensing initiatives within the first four months.
Recent research by Kamma highlights the launch of licensing schemes in Greenwich, Nottingham, Islington, Warwick, and Luton in 2024. London takes the lead in active consultations, with Haringey, Lambeth, Waltham Forest, and Bexley all indicating a strong commitment to adopting new selective and additional licensing measures across the capital.
Fourteen existing schemes are scheduled to conclude this year, with a high likelihood of renewals. Coventry City Council, for instance, has announced a 12-week consultation on the renewal of its city-wide additional licensing scheme for HMOs.
As the Renter’s Reform Bill looms and calls to cease selective licensing schemes intensify, councils are likely to expedite renewals before the bill is passed. Last month, The Neg reported that Newham council issued its first-ever banning order to a landlord letting an unlicensed property, demonstrating a crackdown on non-compliant agents and landlords.
Orla Shields, Chief Executive of Kamma, emphasizes the significance of 2024 for property licensing in the UK, stating, “With a record number of new schemes and consultations, the landscape is shifting rapidly. Landlords and agents must be vigilant in ensuring that their properties are licensed.”