Over 85% of all landlords are unfamiliar with new laws that could force them to carry out expensive restructuring work on their properties or risk facing punitive fines, according to new research carried out by Simple Landlords Insurance.
Landlords who own homes of multiple occupancy (HMOs) will require new licences due to new proposals – which are likely to come into effect next Spring.
60,000 HMOs across the UK currently require a licence but it is estimated that a further 174,000 properties will be subject to mandatory licensing changes aimed at improving housing conditions.
Research from Simple Landlords Insurance found that 40% of HMO landlords were either unaware or did not know the detail of the changes, which will impose minimum standards on room sizes, storage facilities and waste disposal for all HMOs, including conversions and properties of multiple use.
The legislation will also do away with the requirement that all HMOs have at least three stories in order to fall within the scope of any licensing.
Under the new legislation, local councils will be also granted additional powers to adjust the benchmarks and licensing fees if they see fit.
Alex Huntley, head of operations at Simple Landlords Insurance, said: “From our research and our conversations with landlords, it’s clear that not everyone is aware of the proposals for new HMO regulations. That could leave some with rooms they can no longer rent, undersized living areas – and a serious gap in their income.
“Larger landlords with HMO portfolios seem to be better prepared than emerging landlords. It’s our job as an insurer to be the ‘safety net’ that gives landlords the freedom to invest while mitigating risk. This is clearly a risk, and as the six-month countdown begins, we’d very much like to see more clarity from government so landlords aren’t caught unawares.”