How To Overcome Anti-Landlord News Headlines & Government Policies (Advice For HMO Landlords)

A recent report revealed that the private rented sector is “vital to the economic and social fabric of the UK”. Yet, it’s often hard to overcome all of the anti-landlord news headlines and government policies, which are creating additional challenges for landlords, especially HMO landlords.

In this blog post, we’ll talk about the importance of supplying quality properties to the rental market, the challenges landlords are facing from the news and government, and how to overcome the negativity surrounding the HMO industry!

Providing Housing Options

The report about the private rented sector, which was commissioned by the National Residential Landlords Association (NRLA), is based on a survey by Opinium of 2,000 private renters across England and Wales. The findings revealed it’s wrong to assume that renters are trapped in the sector.

While 76% of private tenants said they wish to buy their own home at some point in the future, just 17% said they would have done so already if they could. On top of that, 41% of private renters rated the affordability of their rents as ‘excellent’ or ‘good’, and an additional 38% rated their rents as ‘fair’.

And for many, renting is a necessity. Young people are increasingly living transient lives, and some enjoy the flexibility that comes with renting privately. Additionally, one in three renters surveyed was more likely to buy their first home if they had a secure, stable job. And that figure increased to half among renters aged 18 to 34 years old.

Chris Walker concluded in the report: “For many, the PRS acts as an entry point to the housing market, helping younger people gain their footing and independence when they leave the parental home without the bigger jump and commitment of homeownership.

“Similarly, the PRS is a mainstay housing option for many younger people whilst at university and for many, as they move away from where they grew up to enter the world of work for the first time.”

Renting Can Be a Positive Experience

The private rented sector has attributes that make it the top choice for many renters. And because of this, high-quality, well-provided properties are considered a good thing both economically and socially!

Ben Beadle, chief executive of the NRLA, said: “Today’s report makes clear the positive and vital role the rental market has to play in the economic and social life of the country.

“Contrary to the rhetoric from many, for the vast majority of tenants their experience in rented housing is positive. This is the platform the Government needs to build upon to ensure a sector that works for renters and responsible landlords.”

Policies Negatively Impacting Landlords

While the private rented sector has an important role to play in providing housing, there are a number of proposed policies that would negatively impact the industry. In turn, some of these could cause a further shortage of properties available to tenants. And some policies seem to be penalising good landlords.

One of the changes that could dramatically impact the private rented sector is the cancellation of fixed-term tenancies, which has been proposed in the Renters Reform Bill. This will likely have the biggest impact on student HMO landlords as they will no longer be able to have their tenants on fixed agreements.

Some HMO investors have also started to be charged Council Tax separately for every room in their property instead of the entire home. This has caused anxiety and stress as there is a lot of confusion surrounding why this is happening and how HMOs are being assessed.

Similar properties within close proximity to each other have even been classified differently. Landlords who have already been affected by this have struggled to maintain competitive rents.

Tips to Help You Not Get Bogged Down by the Negativity

While it can be hard to not get down by all of the negativity surrounding the industry, there are some ways we can manage these frustrations. Here are my top tips to remain positive!

1. Join industry groups and network.

Taking part in online and in-person industry groups and networks can allow you to engage and socialise with fellow investors. It can be a place where you can talk about the concerns you have and challenges you’re facing, which can relieve some stress and worry around this. In addition, you can celebrate each other’s successes and give and receive advice.

If you’d like to join a supportive group of more than 6,000 HMO investors, join our free Facebook Group The HMO Community! Remember we’re all in this together, so we can support each other throughout our investment journeys.

2. Reach out to your MP, the government, and the local housing authority.

There are a number of policies and legislation being talked about that would impact HMO landlords and have unintentional consequences that could impact the supply of housing available to tenants.

At the same time, there are numerous large landlord organisations that are actively lobbying the government about certain proposals, including some of those announced within the Renters Reform Bill. And currently, there is a government consultation open about Council Tax valuation of HMOs, which is open until 31 March.

If there are certain policies you’re particularly frustrated by and finding will negatively impact you and your tenants, reach out to your local MP and the Department for Levelling Up Housing and Communities. And it may be worthwhile getting in touch with your local housing authority and getting more information about anything you have concerns and questions about.

3. Subscribe to news for landlords.

Find outlets that cover news articles and updates written for landlords and subscribe to them. This can help you wade through some of the negative headlines but also ensure you’re getting valuable information that you need about the industry.

If you’d like to receive useful articles about the HMO industry straight to your inbox, sign up to The HMO Blog. And to start, scale, and systemise your HMO business and have access to the lessons and resources you need to take your portfolio to the next level, become a member of The HMO Roadmap!

About the Author:

Andy Graham is the founder and the lead trainer at The HMO Roadmap! He is also the co-founder of The HMO Mastermind and Smart Property, a specialist HMO property investment and management company. He writes as a regular columnist in different magazines about a variety of HMO topics and is the host of The HMO Podcast! Follow Andy on Instagram!