HMOs have 'driven away amateur landlords'

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The imposition of House of Multiple Occupancy (HMO) regulations is having a deleterious impact on the market and has discouraged amateur landlords from entering the sector, it has been claimed.

According to Chris Horne, editor of Property Hawk, the health and safety rules have resulted in unrealistic restrictions on property which mean that landlords can face large bills to renovate properties to meet standards.

Mr Horne said: "I think a lot of them have found it a nuisance. It's scared a lot of amateur landlords off doing HMOs because of the potential cost implications.

"Quite often it means that landlords have to fork out for specialist fire systems – sprinkler systems et cetera - which are incredibly expensive. You could be looking at £5,000 to £10,000 to get one of those, and also the rewiring and things like that that need to be put in place."

Councils have been empowered to enforce licensing of HMOs since July 2006 and are able to issue fines of £20,000 for landlords who do not register.

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