HMO charging "lottery" says study

Posted: 23 Oct 2006 11:31:07 GMT

Houses in Multiple Occupation (HMO) rules have become a "postcode lottery" with councils across the country failing to consistently apply them, says new research

Houses in Multiple Occupation (HMO) rules have become a "postcode lottery" with councils across the country failing to consistently apply them, says new research.

The report, from Heritable Bank, said that areas could risk losing buy-to-let investment, with fees in some areas costing up to £1,500 and in others as low as £60.

Councils are only permitted to charge for the cost of issuing the licence but the government has not issued guidelines or recommendations on their price.

"This is a textbook example of a postcode lottery being faced today by tens of thousands of buy-to-let investors," said Mark Sismey-Durrant of Heritable Bank.

"Although the licence scheme was set up with worthy intentions, the government's decision not to set a cap or provide any real pricing guidelines means honest landlords face a startling range of fees, and many will simply steer clear of the costliest boroughs."

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