Landlords look set to endure more months of uncertainty in the law regarding “Homes of Multiple Occupation” (HMO) as new Housing Minister, Grant Shapps, seems to be complicating the issue further in his attempts to reshape the regulations surrounding multiple occupations.

The Minister has decided to scrap the present rule, introduced earlier this year which, to most landlords consternation, required local planning permission to change the rental status of the property if the tenants were renting as a group as opposed to a family. This was a bid by the last Labour Government to restrict the number of small houses used for multiple occupations, in a bid to stop friction in local communities where large numbers of students affected the local population and the services in it.

In an attempt to unburden the industry from unnecessary legislation Mr Shapps has announced the old laws will be repealed on October 1^st but crucially, he has decided to allow local councils to apply the old rules in certain areas where they perceive a problem with HMO’s. A decision which will leave landlords in a confused situation in many cases. A landlord could quite possibly rent a house to a young couple, who would be described as a family unit; they could then decide to bring in a lodger to help with the rent. Would the landlord then be letting an HMO and what would the circumstances be with his landlord insurance?

The Residential Landlords Association has taken up the case for its members pointing out many anomalies with the proposals and campaigning for changes to clarify the situation. They believe changing the number of occupants in a house to be described as a HMO be raised from 3 to 5 and also any residential property,  be allowed to let as shared accommodation or family without the need for separate planning permission.

In a period where local councils are turning more and more for help from private landlords to alleviate the severe demand for housing then it is to be hoped that the matter is resolved in a manner that is conducive to all.

Tags: Landlord Insurance, landlords, renting, Residential Landlords Association

This entry was posted on Tuesday, August 3rd, 2010 at 5:13 pm and is filed under Advice, Insurance Guides, Landlords Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.