Hello readers,
Something that caught my eye in the news recently was a headline about how Medway Council are considering forcing all HMO landlords in certain areas to have a license no matter the size of their HMO.
What is HMO licensing?
Before delving into the detail about the proposals, I thought I would explain a little more about HMO licensing as it’s something that does sometimes cause confusion as the majority of landlords think it’s about Article 4 and properties requiring Planning Permission (it isn’t). You can read more about Planning Permission for HMOs here, but licensing is completely separate.
HMO licensing simply means that landlords need to officially register their property and pass an inspection from the local council who will award a certificate before they can operate. There is also a fee of £1,305.30 that Medway Council charge for this license, with a renewal needed after five years – you can see all fees here.
Licensing helps control the standard of property, with requirements for them to meet fire safety, building safety and tenant amenity standards along with suitable kitchen and bathroom facilities, no overcrowding and making sure rooms meet minimum size standards. They are also further required to provide valid gas and electrical safety certificates and keep the property in good repair.
Whilst having a license is simply yet another cost HMO landlords need to meet, they do help maintain a minimum standard. I’m acutely aware that our industry’s reputation has been damaged by rogue landlords and you may recall how the recent BBC documentary outlined this, but it’s sad that the good landlords are also affected.
What is Medway Council looking to change?
So, onto the Medway proposals which are just proposals at the moment and out for consultation, with a review in April 2026 followed by potential implementation next summer.
Proposals are for additional and selective licensing to be implemented for the following wards:
- Chatham Central
- Brompton
- Fort Pitt
- Gillingham North
- Gillingham South
- Luton
- Strood North
- Frindsbury
- Watling
Some interesting stats to back this up is how analysis from Cadence Innova discovered how 22% of shared-amenity HMOs in Medway have at least one serious hazard which may relate to mould, electrical problems, fire safety and more. The council report that over a five-year period (I’m not sure the dates here), they have received 339 complaints from tenants or neighbours, with 101 anti-social behaviour incidents all relating to HMOs.
On top of this, the potential number of HMOs within the Medway Towns is quoted to be 1,018 (including known and hidden properties), with 658 being in the affected wards. I am actually waiting on a FOI request response relating to HMOs within the borough to report on the breakdown, so this info will be interesting to compare!
The last potential sting in the tail is how Naushabah Khan, MP for Gillingham and Rainham is pushing for Medway Council to consider an Article 4 direction, however progress on this remains to be seen.
What will the impact on landlords be?
I have tried to find specific data on how mandatory licensing like is being proposed here affects the local HMO market, but it has been hard to find anything specific around things like supply and rental rates. I do know, however, that Medway itself will continue to be an excellent location for investment.
Personally, view on this is that responsible landlords have nothing to be concerned about. Apart from the cost (which will most likely be passed on with rent increases anyhow), responsible landlords will already be meeting the council’s requirements so should pass right away or with minimal changes needing to be made.
The problem will be with landlords who simply choose to not register and fly under the radar. Could this be another good revenue raising policy for Medway Council that will not be properly enforced?
Introduction of these tighter requirements will, however, serve to highlight the importance of having a knowledgeable and reliable partner who is able to make sure you remain compliant. This is where opting for an experienced managing agent is an absolute must!
What do you think to these proposed changes and do you think they will come into force? I’d be interested to hear your thoughts – the best way to get in touch is by emailing hasan@home-share.co.uk.
Hasan