Newport City Council is expected to back a 10% rise in HMO fees as part of changes to the authority’s additional licensing scheme.

The budget-saving proposal won widespread support in a recent public consultation, although some locals warned that the move could end up backfiring if higher prices were passed on to tenants, or if a future lack of HMOs impacted the council’s ability to move residents out of temporary accommodation.

It currently costs private landlords £1,231 for an initial HMO licence, which rises by £67 for each additional occupant in larger properties for six people or more.

Under the council’s budget proposals, due to be debated this week, these fees – as well as advice and renewal costs – could all rise by as much as 10%, reports the South Wales Argus.

Rise backed

During the consultation, some 81% of respondents backed the move, while 4% preferred a smaller price increase and 8% opposed any rise.

Of those who voiced concerns, one said any fee increases might be put on the tenants, having an adverse effect on them, and potentially leading to more pressure on temporary accommodation and homelessness.

Another claimed it would be unfair to penalise landlords who did not have a large portfolio.

A third critic warned that the higher fees could lead to fewer HMOs in Newport. “The council should be careful not to hurt the growth of HMO stock, which at present is the best solution for moving households out of temporary accommodation and on to full housing benefit.”