Islington landlords face 30% increase in HMO licensing fees
The cost of licensing larger Houses in Multiple Occupation (HMOs) in Islington has increased by 30% after Islington Council reviewed their schedule of charges.
The cost for a private landlord to obtain a licence under the mandatory HMO licensing scheme has risen from £200 to £260 per letting, an increase of 30%. It now costs £1,300 to obtain a five year licence for a three storey shared house with five single person lettings.
Discounts are offered to members of the London Landlord Accreditation Scheme, although those fees have also increased from £160 to £220, representing an even larger increase of 37.5%.
The new fees came into force on 1 April 2015, making Islington one of the most expensive places in London to obtain an HMO licence.
An Islington Council spokeswoman said:
“HMO fees are calculated according to the actual costs of granting a licence. This year’s fee has been revised on that basis.“
Commenting on the fee rise, Gavin Dick, Local Authority Policy Officer, National Landlords Association (NLA), said:
“According to NLA research, Islington now has the highest HMO licensing fee in London. The council’s rationale for the hike just demonstrates that it underestimated the resources needed to administer the scheme. We urge Islington council to speak to other councils to find ways to control their costs so they can reduce this tax that will be passed through to tenants.“
The information was uncovered during research by London Property Licensing – a new business offering simple, impartial and expert advice on property licensing and the regulation of private rented homes.
Comprehensive information about all property-licensing schemes in London is available at www.londonpropertylicensing.co.uk. For information about HMO licensing in Islington, visit www.londonpropertylicensing.co.uk/islington.