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Big midlands council says new £1,100 HMO licences 'justified'

hmo licensing

Up to 1,800 smaller HMOs in Peterborough could soon need a licence under plans to introduce a city-wide additional scheme.

There are an estimated 2,500 HMOs in the city - up from 1,410 in 2011 - although the number of smaller HMOs is unknown, according to the council, which reports that 563 properties are currently licensed, with a further focus on about 200 mandatory HMOs also believed to be licensable. It believes there are 2,000 unlicensed HMOs, most of which will be three to four bedrooms.

The suggested scheme would cost landlords £1,100 for a five-year licence, the same price as Peterborough’s mandatory scheme, while its selective licensing fee is set at £908.

'Justified'

The council believes that the cost is justified, and its report explains: “Those who feel encumbered by additional cost in bringing properties up to standard to meet the licence conditions should be meeting those conditions in any case and are thus contributing to the reason for the introduction of additional licencing.

“The council takes the view that an increase in living standards in the areas identified by the scheme is likely to result in an increase in the desirability of properties in those areas, thus market forces may well influence better return on investment.”

It reports that 4% of properties identified as being mandatory licensable HMOs have been found to have Category 1 hazards - double the private rented stock citywide average of 2%.

As well as addressing problems such as disrepair and anti-social behaviour, the authority believes that a new scheme would also positively promote compliant landlords and make it easier to involve all landlords in strategies such as crime reduction initiatives.

Councillor Alison Jones (pictured), cabinet member for housing and communities, adds: “We are fully committed to working with partners and landlords to improve accommodation standards across the city.

"Our selective licensing initiative has already proved successful and helped enhance standards of homes in the private rented sector.”

The consultation ends on 31st July.

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