UK Buy To Let Landlords tempting fate with new licence scheme!

Landlords failing to get HMO licence, warns NLA

A large percentage of landlords have failed to register for their licensing of Houses in Multiple Occupation (HMO) and face a £20,000 fine, the National Landlords Association warns.

In some areas of the country it is understood that local authorities have received applications in respect of fewer than 5% of rented properties that require a licence. The deadline to acquire a licence is 6 July 2006.

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The new HMO regulations, which came into force in April this year, set a three-month deadline for submissions of applications – so that any landlord who has not applied for the necessary licence from their local authority by 6 July could face a potential penalty of up to £20,000.

David Salusbury, chairman of the NLA, said: “While many landlords have already applied for the necessary licences for their HMOs, we are concerned that a larger number have not taken the necessary steps to comply with the law. The rules are complex and the NLA telephone advice-line is assisting our members to get to grips with the new regulatory regime. But its complexity is not a reason to ignore them and there is little time left before the deadline expires.

"Quite apart from the £20,000 fine that can be levied, in extreme cases landlords can be subject to a management order. We urge all landlords to take steps to ensure they understand and are compliant with the new rules."

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