Government’s renting reform plans ‘not fit for HMOs’, expert warns

The Renters Reform Bill will have a detrimental impact on HMOs, potentially deterring landlord investment and denting supply, according to Platinum Property Partners.

It has warned that proposals to abolish no-fault evictions and fixed-term tenancies and to give tenants the right to request a pet are simply unworkable for HMO landlords and tenants.

Removing the ability to serve a Section 21 could cause tenant distress and discomfort, particularly when one tenant’s behaviour is not classed as anti-social but can still be intimidating and offensive to the rest of the household – and landlords will be almost powerless to help, says MD Emma Hayes.

Unwanted advances

She cites an example where a male tenant makes unwanted advances to a female tenant. Under the proposed changes, even if there were grounds for a fault-based eviction, there are two major problems. “The offended tenant has to give evidence in court against the offender and they have to continue to live under the same roof as the offender, perhaps for six to 12 months while the case is pending.”

Introducing periodic tenancies not only removes any security of medium to long-term income for landlords in any buy-to-let property, but will also discourage them from catering to tenant requests such as providing a bike shed or orthopedic mattress, she adds.

Animal health

There is also no way HMO landlords could reasonably consent to tenants having pets in shared houses when others may have phobias or allergies, while the proposals asking tenants to take out pet insurance only covers animal health, not wear and tear. “For HMO landlords, having to scrutinize each insurance policy per tenant and then taking it in good faith that they will recoup costs that would be paid directly to the policy holder is not feasible,” says Hayes.