HMOs: A concern across the district

In the recent county council elections, I was approached by a good many people asking for urgent action on the problem of HMOs (Houses of Multiple Occupation).

Over recent years the prevailing attitude has been to let the market decide and allow this type of development even though it is clearly having profound effects - both short-term and long-term -on our communities. In particular, the surge in their development has been fuelled by a student housing boom which many feel is distorting local communities. Terraced housing and starter homes are increasingly being bought with the student market in mind; larger, Victorian properties which in the past would have been converted into four or five two-bedroom apartments (with each boasting lounge, kitchen and bathrooms) are now also the target of greedy landlords seeking 20-30 one-bedroom units guaranteeing higher rental yields.

But this comes at a real and significant cost to the town and its people: housing which previously would have been the preserve of young couples is now being priced out of their reach. Sadly the whole of the property market is being distorted as landlords use low interest rates to buy yet more property to exploit the student market, a trend which is being made worse by the Tory Government’s ‘Help to Buy’ scheme being mis-
appropriated by the very same landlords. Those in neighbouring homes are left with the feeling that their street is changing before their very eyes.

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It strikes me that this issue has now reached a critical point with residents becoming utterly frustrated by the lack of a watertight policy to block any further development. We urgently need to stop this mad goldrush before it destroys our communities. Schools, shops and neighbourhoods depend on the right social mix. Allowing more HMOs in certain areas threatens the viability of these amenities.

A final point is the impact on council tax revenues: students currently and rightly do not pay council tax and central government is supposed to make up the shortfall. In reality, the amount paid to local councils is the subject of a particularly opaque calculation that does not reflect the reality. I fear Warwick District Council is being short-changed by George Osborne. What we need is a completely transparent council tax levied on landlords based on the size of the building and the number of occupants. Such a tax would reflect the impact of these concentrated dwellings on the locality. This would make sense and bring parity and fairness to the market. It’s also worth noting that investment in the student housing market nationally has more than doubled in the past 12 months: this suggests there are some very fat returns being made by the landlords at the expense of the host communities.

Until this last point is clarified and a fair tax structure is implemented, I would advocate an immediate moratorium on HMOs in Warwick District.

May I finally use this opportunity to express my sincere thanks to those who voted for me in the recent county council elections.

Cllr Matt Western, Labour, Leamington Willes

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