Tenants living in shared homes are likely to pay more rent thanks to extra government regulation, the National Landlords Association (NLA) has claimed.
From today, any landlord who lets a property to five or more people must hold a license from their local authority and it’s expected that ruling has affected 160,000 shared homes, or “houses in multiple occupation (HMOs).
Richard Lambert, the chief executive of the NLA, has shad this “extra regulation will increase landlords costs”, adding that tenants can expect to see those fees passed on to them “meaning tenants will pay more in rent”.
He told the BBC: “Some landlords will also reduce the number of rooms they rent out to try and comply with the legislation, meaning some tenants will face eviction.”
The Tenants Union has hit out at the statement, with a spokesperson arguing: “Renters are already facing a perfect storm of rent increases at a time when more people are having to deal with shrinking wage packets.
“We welcome this additional legislation, but we feel that there is still further to go and that all rented accommodation should be subject to regulation, to ensure standards rise”.
The Ministry of Housing and Local Government has said its new rules will protect upwards of 850,00 private renters – disputing the landlords’ “increased costs” claim.
A spokesperson said: “Many of the properties that will be covered by the new rules, already fall under existing licensing schemes that will be transferred into mandatory licensing free of charge, so there will be no additional costs to those landlords.”
As part of the new government regulation, there are also rules on minimum sleeping room sizes and the waste disposal services shared housing occupants should have access to.