Vida Homeloans has warned brokers to be aware of landlord clients who may be venturing into unlicensed Houses in Multiple Occupation (HMOs).
Speaking at the Financial Services Expo, Vida Homeloans director of sales – mortgages Louisa Sedgwick said this was one of the most concerning aspects of the buy-to-let market at present.
“I’m a little bit worried about the future of the unlicensed HMO world,” she said.
“I’m quietly concerned that we’re going to get lots of unlicensed HMOs because that’s the way the market’s being driven as they are seen as the most profitable, so I’m a little bit concerned about that.
“If I was going to give any advice to brokers, it would be just to make sure you know your customers really well and that they are not diversifying into things that are maybe not necessarily as controlled as they should be,” she added.
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