The Landlords Union “Press Liaison” Questions HMO Minimum Room Size Impact Assessment

The Landlords Union “Press Liaison” Questions HMO Minimum Room Size Impact Assessment

11:49 AM, 8th May 2018, About 7 years ago 109

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We were recently approached by a landlord of a four bedroom HMO property whose Local Authority had contacted her to remind of the approaching restrictions on minimum room sizes. One of this landlords bedrooms was slightly below the 6.51 sq metre limitation, which becomes effective from 1st October under  ‘ The Licensing of Homes in Multiple Occupation ( Mandatory Conditions of Licensing ) Regulations, 2018.

The landlord’s options are quite limited. She will have to serve a Section 21 Notice on the tenant of the smaller bedroom, who, hitherto, has been content with this accommodation for the level of rent paid. Its worth pointing out that so too were the Local Authority, as there is ample residual living space in the rest of the property.

Also, and as a consequence, the rent for the remaining three tenants will have to increase to the maximum that the market rate can bear. This will be more than currently payable, but no doubt still at some loss to the landlord.

Interestingly, there is a detailed 22 page Impact Assessment published by MHCLG, albeit omitting the number of units of accommodation that are foreseen to be lost by this legislation, the amount of rental increase other tenants in the property will incur and the resultant financial loss to landlords from rent not recoverable.

We have written to Cynthia Brathwaite , the author of the Impact Assessment to ask:-

  1. How many units of accommodation are expected to be lost, and
  2. What impact the reduction in units of accommodation will have financially on landlord and tenants?

Unbelievably, the Impact Assessment Report makes no reference to these fundamental issues!

It is suspected the reasons these factors are not covered is because the government believe, naively, that Landlords will just downsize without financial compensation and suffer the loss of rent ‘on the chin’ together with the license fee.

[ The above links to another piece of work about the causes of rent increases, soon to be published. Watch this space! ]

Whilst we are waiting for a response to the fundamental questions raised, it would be useful if members have any similar experiences that publicise in regards to “true consequences”. Please post comments below or email Press@Property118.com


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Paul Maguire

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8:03 AM, 12th May 2018, About 7 years ago

I'm with Marek on that. 3m x 2m is a cupboard [with a window I assume]. Can it be turned into an ensuite?

marek

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8:21 AM, 12th May 2018, About 7 years ago

Reply to the comment left by Chris Daniel at 12/05/2018 - 07:59
For the sake of clarity - I am an award winning architect, working in London since 1981. But as I also work internationally, it my firm view that space standards in the UK are shameful. Worse than 3rd world. Be it that they go hand in hand with our potholes. I live in Notting Hill and some roads near here are worse than in Luanda, where we also work. Pathetic. The 6th economy on this planet...really...? A sad joke...

Badger

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8:51 AM, 12th May 2018, About 7 years ago

Reply to the comment left by Paul Maguire at 12/05/2018 - 08:03
I would agree that it is very small - so how come so many houses (back to the beginning of time) where a third bedroom - often colloquially referred to as a "box room" - have been and still are being built - presumably originally designed by architects?

My son lives in a modern (built ten years ago) house that barely accommodates a modestly sized sofa in the living room. I'll leave it to the reader's imagination to consider what this implies for the size of the bedrooms.

Chris @ Possession Friend

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9:05 AM, 12th May 2018, About 7 years ago

Reply to the comment left by marek at 12/05/2018 - 08:21
Marek,
Condemning the size of properties, even modern ones as Badger remarks after your post, is not addressing the issue. There is no 'fence' to sit on here. Its a simple question of should those tenants currently ( happily ) renting - for a reduced price, a smaller bedroom - be evicted because of a new law. Yes or No.
( They may not be able to move to Luanda or otherwise outside of the area they're currently residing. )

Ross Tulloch

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9:51 AM, 12th May 2018, About 7 years ago

Marek, Paul, our tenants who live in the very small rooms choose them freely. They choose them because they are affordable and near to were they want to be. If that choice were taken away from them by others, they would be forced to pay more for larger or commute further. Also there would be many fewer rooms. They key with a shortage of properties is to make best use of them. I imagine you both can afford better, so are perhaps not best suited to making comments about those not able to

Paul Maguire

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10:22 AM, 12th May 2018, About 7 years ago

Reply to the comment left by Ross Tulloch at 12/05/2018 - 09:51
Fair point Ross but I wouldn't be comfortable enough with it to buy the property as a money earner in the first place, if that was the only way to make the sums add up. Might just be me though.

Ross Tulloch

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10:30 AM, 12th May 2018, About 7 years ago

Reply to the comment left by Paul Maguire at 12/05/2018 - 10:22
Well, we own 6 properties with these small rooms. For the last 4 years. That is over 8000 room days. When a tenant moves out there is one to move in the very same day. Always. No voids at all. Therefore I do not think someone sitting at a desk should stop them doing this. I feel responsible for making the most of every room for them that I can.

Paul Maguire

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11:18 AM, 12th May 2018, About 7 years ago

Reply to the comment left by Ross Tulloch at 12/05/2018 - 10:30
I do accept your points Ross and agree that standards should first be set by those making the rules and apply to all, not just a certain target market [us]. Might be different up here in Scotland but I've always taken a single room [with external facilities] to be 6.5m2 and a double is 10.5m2. Looking at the new rules it's now 6.51 and 10.22 so a slight up and a slight down. Surely much the same rules have applied in England too ?? If they have, where's the complaint?

Ross Tulloch

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11:22 AM, 12th May 2018, About 7 years ago

The complaint is retrospectively applying rules to existing properties that are already built and applying rules that are against the interests of those who are on tight budgets.

Mark Alexander - Founder of Property118

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11:27 AM, 12th May 2018, About 7 years ago

Reply to the comment left by marek at 12/05/2018 - 08:21
So are you suggesting that all the people who live in small rooms should be forced to move out just because some pen pusher thinks it is a good idea? What if they can't afford a bigger room? Where are they supposed to live then, a tent, on the streets?

And what about all the other tenants in that property whose budgets will need to be increased to accommodate the fact that less people will be contributing to the running costs of the property?

For somebody claiming to be an architect you don't appear to have thought this through any further than the idiots dreaming up these stupid rules!

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