Claims companies targeting HMOs post-PPI – Whittaker

Whittaker said claims firms had moved on to the sector following the end of payment protection insurance (PPI) claims in August and the introduction of licensing requirements for houses in multiple occupation (HMO).

He cited cases where CMCs had targeted tenants in HMOs where landlords had not yet secured a licence for the property.

This included five students from Leeds who reclaimed around £15,000 from their landlord who only applied for the licence halfway through the tenancy.

‘Big money to be made’

Speaking at FSE Midlands, Whittaker said: “Ambulance chasers are moving from PPI to HMOs and they are targeting tenants suggesting that their landlords don’t have the necessary licence and they can take them to court.

“There is big money to be made here and these ambulance chasers are suggesting to tenants they can take landlords for £20-£30,000, and they’ll be taking ten per cent of this.

“This will be bad news for your customers if they don’t know what they’re doing,” he added.

Whittaker also noted that many councils were dealing with the regulations and applications differently and many were particularly slow in responding.

But he suggested landlords should not worry too much about the turnaround time in receiving a licence as long as they had put their application in.