Spotlight on Unlicensed HMOs and the Renters Rights Bill

A recent BBC investigation has brought the issue of “black market” Houses in Multiple Occupation (HMOs) into sharp focus, exposing the dangerous and unsanitary conditions many tenants are forced to live in. The exposé, which was sparked by a tenant’s long-standing complaints to a London council, revealed a hidden world of unregulated housing where safety is often an afterthought.

The Scale of the Problem

The BBC’s investigation found:

  • Dangerous Conditions: Unsanitary and overcrowded homes with black mold, rats, and tenants sleeping on bare mattresses.
  • Undercover Findings: An undercover reporter found ads for “bedspaces” in shared rooms that violated licensing laws. In one property, a room advertised for £330 a month housed multiple tenants with no bedding.
  • Widespread Illegal Activity: Data from a landlord review website, Marks Out Of Tenancy, suggests that in some London boroughs, there could be two to three times more unlicensed HMOs than licensed ones. For example, in a part of Newham with only 75 licensed properties, the investigation found over 700 potential unlicensed HMOs.

The Industry and Government Respond

This investigation raises critical questions about enforcement and the upcoming Renters Rights Bill.

  • The Landlord View: Chris Norris, chief policy officer for the National Residential Landlords Association (NRLA), acknowledged that while most landlords operate within the law, “some landlords do” get away with bad practice.
  • The Government’s Position: The government has stated that the new Renters Rights Bill will address the situation by “empowering” tenants and making it easier for local authorities to “clamp down on rogue landlords.” The bill, which is expected to become law this autumn, aims to ensure HMOs are “safe, well-maintained, and properly managed.”

How the Renters Rights Bill Aims to Help

The new legislation seeks to provide tenants with greater security and better protections. Key provisions include:

  • Abolishing Section 21 ‘no-fault’ evictions, which will give tenants the confidence to report poor conditions without fear of being forced to leave.
  • Creating a new Private Rented Sector Database, which will require all rental properties to be registered. This is intended to give local authorities and tenants better data to identify and hold rogue landlords accountable.
  • Applying the Decent Homes Standard to the private rented sector, setting a clear benchmark for living conditions.

The success of these reforms hinges on effective enforcement. As the bill heads toward becoming law, the focus will be on whether local councils have the resources and a robust framework to truly make a difference in the lives of tenants living in these unsafe properties.

For Rent: Rooms Under the Radar Watch on iPlayer

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