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In the February 2010 Issue of Property Investor News

HMO's & Multilets

Whatever else the current Government might be remembered for, reform of the private rented sector (PRS) is likely to be one of them. Even with an impending election further reforms have been proposed of late with the announcement by John Healey, Housing and Planning Minister, that landlords wishing to create new HMO or multilet properties will require planning permission from this April. Councils will also receive new powers to licence and regulate landlords in particular areas.

The moves are apparently intended to control the spread of high concentrations of shared rented homes where this is believed to be creating problems for permanent residents, such as anti-social behaviour, or changing the character of an area. Proponents also claim the new rules will protect tenants from poor conditions and management by bad landlords.

A Government consultation on how to tackle this longstanding issue closed last year. It attracted around 900 responses from local authorities, residents associations, universities, individuals, MPs, councillors and campaign groups. Apparently 84% of those who responded commented that planning legislation should be amended. Locations that particularly highlighted the issue included student areas such as Nottingham, Southampton, Loughborough, Leeds and Bristol but also other locations such as Blackpool and Peterborough, where HMOs are said to be impacting on the local economy.

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