A new licensing scheme is set to cost buy-to-let landlords in Reading hundreds of pounds more than they paid previously.
Private rented accommodation takes up a major share of the housing stock in Reading, with nearly 40 per cent of homes being privately rented.
Furthermore, there are over 3,000 houses which are homes of multiple occupation (HMO), meaning three or more separate individuals share facilities.
Licences dictating safety conditions in homes are currently mandatory for HMOs with five or more people.
A licence requires a landlord to ensure smoke and fire alarms are maintained, all shared appliances have electricity safety ratings and any necessary repairs are conducted in a timely manner.
But Reading Borough Council has recently decided to require all landlords of HMOs to possess licences for its Additional (HMO) Licensing Scheme.
That means landlords who have small HMOs with at least three people living there will have to pay to apply for a licence.
The cost of licences for HMOs will initially cost £950, before increasing to £1,250.
Justifying the increase, a report by Stuart Taylor, the council’s principal environmental health officer, states: “The fee is proposed to be increased in year, increasing from £950 to £1250 for a standard application.
“This is required to allow for a full inspection programme to be implemented and to cover the running costs of the scheme implementation.
“The standard fee will be kept to the consultation proposal of £950 in
the first part of Year 1 to act as an incentive to apply early.”
Those who are members of an accredited landlord scheme such as the National Residential Landlords Association (NRLA) will get a discount £800 at the start, rising to £1,000 from the middle of Year 1 onwards.
Late applications, where the property has been licensable for 12 weeks
before the application is made will cost £1,200 at the start of the scheme, rising to £1,500 after that.
The scheme is set to formally be declared in March next year, ready for additional HMO licences to be implemented in June.
In certain areas, the council will require all buy-to-let landlords to have a licence, under its selective licence scheme.
The selective licence scheme will be introduced in the Battle ward of West Reading in 2027, Park ward in 2029, with both of the latter wards being located in East Reading.
The selective licence scheme will cost £750 at a standard rate, £650 for those who are members of an accredited landlord scheme, and £250 for properties which are in use through the council’s rent guarantee scheme.
Justifying this low rate, Mr Taylor’s report states: “These properties are generally let below market rents and the reduction is to incentivise
and retain landlords onto the scheme.”
The rent guarantee scheme was set up to help people who are homeless or at risk of homelessness access private rented accommodation.
Councillors agreed to the additional HMO and selective licensing schemes at a housing, neighbourhoods and leisure committee meeting on Wednesday, November 13.
