Newsflash: Important Upcoming Changes to HMO Licensing. Good News for (some) Landlords in Brighton and Hove

In this month’s blog from Clarity Property Management, we’re all about rules, regulations and licensing. And this time, if you rent your property to three or four people, there are positive updates. But – watch this space.

Brighton and Hove is a big draw for students looking to share a house to save on rent and bills. It’s a kind of young person’s right of passage and an early journey towards independence in one of the South East’s most fantastic places to live.

Therefore, the HMO private rented sector has boomed.

However, as we often say, being a landlord is more complex than it used to be. New laws come onto the statute books regularly, often requiring extra expenditure for property owners – and the added stress that can go along with it.

So it’s refreshing for us to bring some sunshine into your busy day.

What’s occurring? Let’s cut to the chase here:

After February 28th 2023, the Additional HMO Licensing Scheme for three or four-bedroom properties will end. That is to say, the license fee that you have been paying to Brighton and Hove City Council will no longer apply. It will, as the saying goes, cease to be.

For completeness, a couple of things: HMO stands for House in Multiple Occupation, and the HMO licence for five and above-bedroom properties will still apply. In other words, it’s business as usual for larger houses.

There’s a “but” here. And it’s this:

As we understand it, a new system will likely be in place in the future, but nobody knows quite when. The Council is conducting a feasibility study to determine if a different licensing scheme is needed. And, what it may look like; as you may already be aware, nothing happens particularly fast with B&H council, so it may not be any time soon. But, it will most likely occur.

As soon as we know, we’ll let you know about developments tout suite to ensure that you remain compliant.

HMO Licensing Explained

In Brighton and Hove, you have been required – although as we’re reporting, this is changing – to pay £683 for your five-year HMO licence if you rent out your property to three or more tenants (each with their bedroom) who aren’t members of the same family.

Based on Part 2 of the Housing Act 2004, the HMO licence isn’t just rather expensive. To acquire one, and keep it, there are also some exacting standards to meet. Why? Because – as it almost goes without saying –  the slum landlord image of yesteryear must be seen to be entirely behind us, as you would expect.  

Brought into law as far back as 2006 (and updated regarding three/four-bedroom properties in 2007), the subtle details within HMO licensing vary between UK local councils.  Through regular inspections, in Brighton, your property has to prove that it’s up to scratch to ensure tenants’ safety and wellbeing. For example, regarding certain facilities and amenities relating to the number of occupants and even the relative sizes of rooms. 

You can find it here:

https://ww3.brighton-hove.gov.uk/sites/brighton-hove.gov.uk/files/HMO%20Standards%20online%20version%2031.1.18.pdf 

Equally, you can’t just start renting out a larger property to various folks. Something called an Article 4 Direction comes into play should you want to change a property from “a dwelling house” to a “House in Multiple Occupation”; probably, this is obvious, but worth confirming.

Brighton and Hove’s student population is considerable, and concerns have been raised regarding the conversion of too many family homes clustered and concentrated in certain areas.

Did You Know?

For a full picture, here are some interesting facts and figures:

The latest census figures show that there are 42,000 privately rented properties in Brighton and Hove – an estimated one-third of all homes throughout the city. That’s a large number of citizens that rent their property through an agency or directly from a landlord.

In our fair city, there are:

• 1,777 five-plus bedroom HMO properties, and
• 1,891 three or four-bedroom properties

Were you also aware that the Council planned to hit all landlords, regardless of tenant numbers with the same standard of demanding licence requirements – back in 2018? The idea was rejected at the last minute, with potentially (we’re assuming this) a lack of manpower and resources at the heart of its change of mind.

What does the lifting of the licence mean for you?

In a nutshell, it means that if you rent out a three to four-bedroomed property, from 28th February, your licence will expire without any consequences or come back.  An inspection won’t happen, and neither will a bill drop through your door.

Nevertheless, as a professional lettings agency that’s accredited and registered with ARLA, the terms of our Tenancy Agreements always include a six-monthly inspection. This enables us to view the overall condition of the property, checking its state of repair inside and out throughout the tenancy. Also, to allow your renters to ask any questions or concerns they may have.

What do you need to do?

In a word – nothing. At least, not for now. But you’ll be the first people in the loop when we hear about updates from the Council. It’s constructive news for now – for a change!

Clarity Property Management is a friendly team of highly experienced letting agents in and around Brighton and Hove. We offer high-quality tenant-find and property management services, meeting the needs of landlords. If you have a property to rent, we’re at your service. 

Just call 01273 253 000