Licence discrepancies
25/10/2006 - New law causes cost discrepancies around the UK
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The Houses of Multiple Occupation or HMO, licenseing scheme, is, according to new research, leading to cost discepancies across the UK. The new law requires landlords of some properties to apply for a licences if the building is three or more floors high and are let to five or more people. The cost of the licence ranges from £60 in Herts and £1500 in parts of London. Councils have the power to decide how much the licence costs and those who do not pay up risk tough penalties. The research was carried out by the lender Heritable Bank who's chief executive, Mark Sismey-Durrant, says that the licence scheme, although set up with good intentions, fell down because the Government had not set a cap or provided any real pricing guidelines resulting in a "startling range of fees" with many landlords "steering clear of the costliest boroughs".
In order to qualify for the licence a landlord must prove they are a fit and proper person to hold the licence and the property must be suitable for the number of people living in it. The licence came into force in January this year and are aimed at preventing slum landlords renting out unsuitable properties to tenants. There must be at least one bath or shower, kitchen and one lavatory among five people.
