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Buy to let investors across the UK will be paying out a combined £95 million in licence fees and admin charges before the end of the month due to new licensing laws.
New research has found that over 77,000 UK landlords will be paying out admin charges and fees before October 1 when new licensing laws come into effect. The imminent deadline for the legislation means that landlords need to swiftly check if they need a licence for their property.
Any landlord with a property that houses five or more people is required to have a specific house in multiple occupation (HMO) licence.
Previously, only properties that houses five or more people and were three or more storeys high required such a licence.
Research commissioned by Currys PC World Business and carried out by the Centre for Economics and Business Research, has discovered that the new licensing laws will leave landlords with a bill for £1,235 each. This amounts to a staggering £95,399,845 across the sector.
The changes to the law are set to affect over 160,000 properties, with 77,194 landlords being expected to apply for the new licence.
Head of B2B Strategic Partnerships at Currys PC World Business, Simon Moyle, said the research finding showed that landlords must move ‘as quickly as possible’ in order to comply with the new law. Otherwise they could risk being hit with fines of up to £30k per property for their failure to comply.
Paul Hilliard, a representative from Landlord National Purchasing Group, spoke out about the changing legislation: ‘It’s easy to forget that the majority of the UK’s landlords also have other jobs, so applying for new licences isn’t top of their priorities, meaning the government has a big job to do between now and October 1 to raise awareness of this new law.’