According to Hackney Council, almost a third of properties in the borough are in the private rental sector (PRS). In total, over 34,000 people rent privately in the area. It is a very popular spot, appealing to creatives, professionals, and families because of the great location and trendy vibe. However, the council has some concerns and is looking to take action to improve standards. Let’s have a look at their plans, then you can reach out to us if you want to arrange guaranteed rent in Hackney.

The problem

An independent review of the PRS in Hackney supports the Council’s concerns. It found that 17% of homes in the sector could have serious hazards, including issues with fire safety and damp. This is well above the national average (10%).

In addition, the review finds that there is an even bigger problem with houses in multiple occupation (HMOs). The number of homes with potential hazards is an incredible 30.1%. As a result, a massive number of people in Hackney living in HMOs could be at risk.

The response

Hackney Council is responding to the findings by consulting on plans to introduce licensing. It would require landlords in the PRS to get a license for each property. They would have to ensure homes meet minimum standards, and also be proactive with maintenance and management. It will be important to keep an eye on this topic and consider alternatives like guaranteed rent in Hackney.

A crucial thing here is the potential cost of the licensing. Hackney is proposing charging £925 for each single home and £1,400 per HMO. The licenses would last five years. All of the money from the licensing would cover the costs for running the scheme, including the important element of property inspections.

Specifically, Hackney Council is looking at where to introduce the licensing. Plans for HMOs would cover smaller properties throughout the borough. They would be an addition to the current mandatory UK-wide licensing scheme for larger HMOs. Individual homes in 17 wards (the areas with the highest number of PRS properties and issues with housing conditions) would need a license.

Next stage

Hackney Council opened a public consultation on their licensing plans in June. People will be able to give their views until 21st September. Afterwards, there will be a review of all feedback and relevant evidence. The estimate is we’ll have a final decision later in the year. If they decide to progress with the scheme, we’ll get a date for the introduction in the future.

Mayor of Hackney Caroline Woodley is supporting the proposals. She said it would allow the regulation of the majority of the PRS in the borough, building “a network of responsible landlords”. Importantly, it would also ensure private tenants don’t face “unacceptable and potential dangerous” living conditions.

Should you consider guaranteed rent in Hackney?

The high demand for rental properties in Hackney, as well as the impressive rates, makes it a really attractive area for investors. The potential introduction of licensing could cause some issues, increasing the cost to landlords. It is definitely worth keeping an eye on to see if it comes into force and increases responsibilities.

It is also a good idea to have a closer look at other potential schemes. We specialise in guaranteed rent in Hackney and other parts of London. It can be a really impressive option for investors. If you sign up, you get paid every month and don’t have to think about tenants, managing properties, and other things.

So, get in touch today if you want to discuss your strategy for your assets. We’ll be happy to help you decide if guaranteed rent is right for you.