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NRLA Rejects Expanded HMO Licensing Powers Proposed by MPs
The National Residential Landlords Association (NRLA) has rejected recommendations from MPs that would make it easier for local authorities to introduce selective licensing schemes for houses in multiple occupation (HMOs). The House of Commons Housing Select Committee recently published a report calling for expanded council powers to regulate the private rented sector, including the ability to impose 10-year licensing schemes and require landlords to make physical improvements to properties.
NRLA chief executive Ben Beadle stated that the association fundamentally rejects the idea that it should be easier for councils to introduce landlord licensing schemes. While Beadle acknowledged some of the committee’s recommendations, such as improving transparency around local enforcement activity and ensuring the Private Rented Sector Database helps landlords demonstrate compliance, he argued that widespread licensing would duplicate information available through a properly designed database.
The parliamentary report states that local authorities should retain the choice of whether to introduce selective licensing schemes, but recommends that the government remove barriers that inhibit their uptake and effectiveness. The committee also recommended that councils be empowered to set licence conditions requiring landlords to make improvements to the physical state of licensed properties, and suggested extending the duration of licensing schemes to 10 years.
The debate over HMO licensing comes as bank lending to smaller property investors has dropped by 14%, adding pressure to the buy-to-let sector. Earlier this year, landlords in Portsmouth successfully overturned certain council HMO licensing conditions, highlighting ongoing tensions between local authorities and property owners.
This ongoing discussion reflects broader questions about regulation in the private rented sector, with landlord organisations advocating for targeted enforcement rather than blanket licensing schemes. The outcome of these recommendations could affect how local authorities manage HMOs and the compliance costs faced by landlords across England.
Source: PropertyWire