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Council threatens landlords with unlimited fines and criminal records

Landlords who rent out HMOs in parts of the Midlands are urged to act now so they don’t get hit with legal action or hefty fines by the council.

This follows the newly introduced Additional HMO licensing scheme in four areas of Walsall.

This scheme was approved in October 2021 and came into force on September 1 this year. Landlords of relevant HMOs in these areas should have already applied for an HMO licence, at least by August 31. The council is urging landlords and property agents with HMOs in the relevant wards who have not yet applied for a licence to do so as soon as possible.

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The licences lay down conditions which landlords must meet, including keeping properties in good order, undertaking regular inspections, making sure properties are not overcrowded and tackling any anti-social behaviour such as dumping of rubbish or untidy gardens. As well as providing for improved living standards for tenants the conditions are designed to ensure properties are managed more effectively.

Councillor Gaz Ali - whose title is Portfolio Holder for Customer Engagement - says: “We would urge any landlords of HMOs in these four wards who have still to apply for a licence, to do so as quickly as possible. Most landlords operate in accordance with the law but the council has a duty to combat poor practices and will use enforcement powers where necessary to ensure the safety of tenants in the private rented sector. If landlords or tenants have any doubts or concerns about the licensing of their property, please contact the council for support and advice.”

From September 1 it became a criminal offence to operate an HMO property in these four areas without a licence or fail to comply with any of the conditions of a licence.

A statement from the authority says it will “vigorously enforce against non-compliance, meaning landlords and managers could receive an unlimited fine upon prosecution, so receiving a criminal record. Or they could be issued with a civil penalty fine of up to £30,000 per offence and may be banned from running rental properties in the future.”

Last month the council approved the designation of a second HMO Additional Licensing scheme covering several other wards.  This second scheme will become operational on July 1 2023.

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    Why are Landlords to blame for any tenants' anti social behaviour?

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    I'm not an HMO landlord, but it does need to be remembered that HMOs provide a useful service for the less well off single people who cannot afford to rent a self contained property, LHA is set using HMO rates, councils need to be careful here that law of unintended consequences could come into play .

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    Andrew - it's not just the less well off single people who live in HMOs. You're right about the LHA for single people under 35 only being the room in a shared house rate. However, a great many HMOs wouldn't cater for that market as the LHA rate is lower than HMO rents and single people have far too low a UC entitlement to make up the shortfall.

    In reality a lot of graduate professionals with decent incomes live in HMOs so they can afford both lifestyle and to save a deposit to buy a house. Three or four years in a shared house with similar housemates seems to work well for them.

     
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