Thousands of black market HMOs revealed…

You might have watched the recent BBC documentary For Rent: Rooms Under the Radar, which revealed some truly shocking practices around HMOs in London.

It is cases like these that damage the reputation of the HMO sector and fuel the idea that shared housing is a negative option for society. While these stories are not new, some of what was shown was still deeply concerning:

  • Tenants with no tenancy agreements in place
  • A two-bed flat where 20 people lived and a fatal fire broke out
  • A family of four squeezed into a single room
  • Properties blighted by damp, mould, unsafe electrics and even rats

One example in Waltham Forest showed a shared bedroom advertised at £330 per month. When an undercover reporter visited, they discovered around ten men in the property, with three sharing the advertised room and some beds without mattresses or bedding.

The scale of the issue is worrying. One London borough reported 3,000 licensed HMOs but estimated two to three times as many operating unlicensed. In Newham, over 700 possible HMOs were identified compared to just 75 licensed. In Tower Hamlets, nearly 500 HMOs were found, with only 50 licensed.

Unsurprisingly, public opinion is low. Closer to home, Dartford’s leader Jeremy Kite described HMOs as magnets for crime and anti-social behaviour, saying they have no place in a modern, civilised housing economy.

We understand how rogue landlords and poor management have tarnished the industry. In some cases, it may not even be the landlord’s fault, as properties are often handed to guaranteed rent companies where the superior landlord is unaware of what is happening.

With the cost-of-living crisis and rising rents, the number of HMOs has increased. We believe they can be part of the housing solution, but only when managed properly. Unfortunately, too many agents cut corners, charge low fees and fail to keep properties compliant. Licensing is intended to address this, but under-resourced councils find it difficult to enforce.

Looking ahead, once the Renters’ Rights Bill becomes law, we expect to see further mismanagement and a rise in problems such as fake licences, illegal subletting and unfair rent-to-rent arrangements.

It is important to remember that many good HMOs, landlords and managing agents do exist. For both landlords and tenants, carrying out proper research before entering into agreements is essential.

We have submitted a Freedom of Information request to Medway Council to see how HMO numbers have changed locally and will be reporting back on this soon.

We would be very interested to hear your thoughts. If you are a landlord with an agent managing your property, how do you make sure they are doing things properly? You can reach us at info@home-share.co.uk.

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From planning permission for HMOs to tenant compliance checks, this guide provides a step by step outline of everything landlords need to know