The boss of a leading property investment firm has warned that the Government’s renting reform proposal’s within its recent white paper will be bad news for HMO landlords and their agents.

Emma Hayes (main picture) who is MD Of Platinum Property Partners (PPP), the UK-wide network of professional HMO landlords, says Ministers must row back from the proposals which she claims will reduce investment in the sector and reduce supply.

Specifically, Hayes reckons plans to abolish Section 21 evictions, bring in periodic tenancies to replace ASTs and give tenants a right to live with their pets will all make managing and making money from HMOs more difficult

“A few of the key areas of the proposal are simply unfit for HMO landlords and tenants and will cause serious problems to arise if exemptions or amendments are not made,” she says.

Hayes cites the example of a male tenant who made unwanted advances on a female tenant.

“She was frightened and told him to stop but he persisted and went on to steal her underwear from the washing line. Under the proposed changes, even if there are grounds for a fault-based eviction, there are two major problems.

“First, the offended tenant must give evidence in court against the offender and second, they would have to continue living under the same roof as the offender, perhaps for six to 12 months while the case is pending.

Hayes also say that introducing periodic tenancies will remove any security of medium to long-term income for landlords and HMO landlords in particular.

“As all our professional HMOs are fully furnished, it’s not unusual to receive specific tenant requests, perhaps for things like additional bike sheds or an orthopedic mattress. But if that tenant were able to leave on two months’ notice at any time, it’s unlikely our landlords will risk the additional investment,” she says.

It is also claimed that the pet proposals would be impossible to implement in an HMO because, while one tenant might want a pet, others may be allergic them.

Crucial point

She also says the Renters Reform Bill does not clarify a crucial point.

“The proposals state that landlords may ask tenants to take out pet insurance and that this will not be a prohibited payment under the Tenant Fees Act 2019,” says Emma.

“But pet insurance only covers the health of the animal, so what the white paper should state is pet liability insurance that may, or may not, cover wear and tear caused by pets.

“For HMO landlords, having to scrutinize each insurance policy per tenant and then taking it in good faith that they will recoup costs that would be paid directly to the policy holder is not feasible.”

Read more about the White Paper.