As a general rule, landlord licensing is a great concept. This allows councils to ensure the quality of landlords and rental properties throughout the UK. Before deciding whether or not buy to let is still worth it , it is very important to understand licensing.
Whilst there are different licensing schemes within the UK property market, by far the most complicated is England. The main reason being that each local authority has the power to have their own rules on licensing.
There are currently three types of property licensing:
- Mandatory HMO (Houses in Multiple Occupation) licensing – This covers those homes shared by 5 or more people where some or all of the occupants share the same toilet, bathroom or kitchen.
- Additional HMO licensing – This covers smaller HMO properties which are shared by 3 or 4 people where some or all of the occupants share the same toilet, bathroom or kitchen.
- Selective licensing – Covers all privately rented properties within a specified area
Mandatory HMO licensing
England does not currently have mandatory licensing for all privately rented property landlords . It does however have mandatory HMO licensing along with additional HMO licensing.
A property can only be licensed once so as long as it meets the requirements for mandatory licensing, there is no need for any additional licensing.
Up until October 2018 one of the criteria was that the property had three or more storeys. Since October 2018 and property that houses 5 or more people, forming two or more households have to be licensed regardless of the number of storeys.
Costs can range anything from £500 through to £1,000 and are usually issued for 5 years meaning that the investment per year is around £100 to £200.
Additional HMO licensing
Where there is no selective licensing scheme in place a local authority can levy regulation on smaller HMO properties. These are typically properties with three or four occupants.
The cost of such license can range from £197 for a one year renewal through to £1,550 for a higher rate application.
Selective licensing
This type of license was introduced to address the problems of poor quality landlords and reduce the levels of anti-social behaviour. Its primary objective was to tackle issues in those areas with low housing demand. This said the act also allows for selective licensing in other circumstances.
Our software helps
With Yuno landlord software platform we help Landlords navigate the tricky aspect of regulations and licensing to ensure that they stay ahead of the game and don’t end up being fined.
By using our platform you can ensure that you are up to date with all of the local area regulations and licensing requirements whilst also accessing an array of self help material.
Find out more
Find out more by clicking one of the buttons below that suits your requirement.
Discover Yuno Compliance Solutions!
Effortlessly stay on top of property legislation with a digital compliance report for every property in the UK. Yuno offers an all-in-one solution for seamless digital audits, real-time updates, and a wealth of property compliance knowledge, transforming compliance from a daunting obligation into a strategic advantage.
