Your Property Network – March 2011
Landlords Unite to Victory over Southwark Council HMO Standards
The local landlords of Southwark recently came together to oppose their local Council’s proposed changes to HMO standards, and in doing so experienced the power of working together to accomplish a shared goal.
In summer 2010 Southwark Council created a draft revised version of their standards concerning HMO (Houses in Multiple Occupation) room sizes. The draft standards included a proposed increase the bedroom size in HMO properties from the legal norm listed in the Housing Act 1985 of 6.5 sq/m, to 10 sq/m.
As you can imagine, for many landlords in the Southwark area the proposed alteration in room size was an unreasonable and problematic change that would have huge negative repercussions on their respective businesses, making the majority of their properties unsuitable for HMO accommodation.
Rooms that were currently being let in accordance with the Housing Act 1985 would become unusable should the draft standards go through.
HMO landlord and Platinum Property Partners (PPP) Franchise Partner Liz Bunton was one of the many landlords that would be directly affected by the proposed changes. On learning of the proposed changes Liz Bunton approached PPP and the National Landlords Association (NLA) for their help and assistance in opposing the change, as the NLA is the leading independent national organisation for private residential landlords, Liz knew their experience would be invaluable.
PPP and the NLA sprang into action, contacting local landlords and property investors to organise a meeting to prompt action to ensure the draft standards would be withdrawn. With assistance from PPP and the NLA Liz Bunton wrote to Southwark Council giving legal and practical reasons why the draft standards they were proposing were unreasonable and contradicted the 1985 Housing Act.
The correspondence between Southwark Council and the landlords opposing the change resulted in Liz Bunton’s HMO property being made exempt from the room size change in the draft standards. At this stage Southwark Council were holding firm on their decision to push forward with the draft standards.
Although the exemption proved a great result for Liz Bunton and Platinum Property Partners, the U-turn would not benefit any other local landlords in the area. Due to the obviously unfair result already achieved the NLA, PPP and Liz Bunton persisted and engaged in an intense exchange of letters, emails and meetings which resulted in Southwark Council withdrawing the draft standards.
Southwark Council have since explained that a more practical approach will now be taken to ensure the realities of today’s housing market are included in any new standards they make. Taking into account the various types of HMOs and the types of tenants that may occupy them into any new standards.
The NLA is continuing to consult with the council throughout this process, representing the needs of landlords and tenants alike. The withdrawal of the draft standards has been seen as a great victory by all involved, Platinum Property Partners (PPP) Founding Partner, Steve Bolton described the victory as offering a valuable lesson to all those involved:
I think there is a strong lesson here for the power of working together, being persistent and not giving up.
This is a perfect example of landlords coming together to take on local government intervention and winning. I would encourage more landlords to work closely together with organisations like PPP & the NLA as this example shows that working together can really make a difference.
Steve Bolton, PPP Founding Partner
Steve went on to explain that private landlords in Southwark area had also created “a great success story and a principle that can be shared to get other councils to recognise that not all HMO’s are the same.” PPP were able to assist in the opposition to the draft standards due to their leverage and large network of contacts. Without the help of Dave Offord the Operations Manager of National Landlords Association, PPP Franchise Partner Liz Bunton, PPP Franchise Partner Judy Mizen, Michelle Glazebrook, Mike Skinner, the NLA, Platinum Property Partners and local landlords, the draft standards could have gone through. Luckily the prompt action, persistence and team work of all those involved averted a major problem for landlords working in the Southwark area.
