Date Published 30 August 2024
The Reading Council is planning to expand licensing to all HMOs in the Borough that house three to four occupants, in addition to the current licensing rules for larger HMOs. Landlords will need to pay a fee of £950 for the HMO licence, which can be reduced to £800 for members of the National Residential Landlords Association (NRLA).
Late applications will incur a higher fee of £1,200, resulting in a £250 extra charge for non-NRLA members who apply late, according to the Council. Furthermore, the Council is also considering implementing selective licensing (the below paragraph will include further details regarding the types of licenses that can be issued) for all rented properties, including those rented to individuals or families, in the Battle ward of West Reading, the Redlands and Park wards of East Reading.
Councils can issue three types of licenses: mandatory HMO licenses for properties with 5 or more people forming 2 or more households, additional HMO licenses for properties with 3 or more unrelated people, and selective licenses for every rental property. The mandatory HMO licenses are already in effect throughout Reading, while the selective licenses are now active in Oxford City and boroughs throughout London. An Article 4 directive currently limits 'small' HMOs with 3-4 people in the University area, which will not be influenced by the proposed new licensing.
The standard rate for these licenses will be £750, or £650 for NRLA members, with a significant surcharge of £1,000 for late applications. The consultation period for these proposals will end tomorrow.
If this is something that eventually does come into effect, we will ensure to keep our Landlords updated and be more than happy to be of any assistance.
