Money Greater Manchester councils pocket from HMO license fee balloons in last 5 years

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hmo license fee revenue

hmo license fee revenue

The money earned by Greater Manchester local authorities from HMO license fees has exploded in the last five years.

Oldham Council’s revenue from HMO license fees has more than quadrupled since 2013. The local authority earned £6,105 from the HMO application process in the last financial year, compared to just £1,328 in 2013/14.

Stockport Council bagged £6,310 from license fees in 2017/18, 3.7 times higher than the £1,684 they made from fees in 2013/14.

Manchester City Council raked in the most cash from the fees, earning £373,637 from license fees last year, more than double the amount they raised from them in 2016/17.

Salford City Council followed in second position, pocketing £85,171 from the HMO application process last year, an increase of 75% in two years.

Meanwhile Bolton Council has doubled the amount it earns from license fees in the past two two years to £9,722.

Trafford Council’s income from HMO license fees ballooned from £1,674 in 2013/14 to £16,193 in 2015/16, but dropped back down to £2,162 in the last financial year.

Both Wigan Council’s and Bury Council’s license fee revenue has remained stable in the last few years, with Wigan Council’s annual income from the fees coming in at only £112 higher last year than it was in 2013/14

The only Greater Manchester local authority to see significant falls in its revenue from license fees was Rochdale Borough Council, where the amount of money gained from the application process fell from £18,630 in 2014-15 to just £5,578 last year.

HMO licensing changes introduced last October, increased the range of properties obliged to apply for licenses. Prior to October 2018, only properties which were three storeys or higher, housing at least five people and composing two or more households required an HMO license.

The 2018 changes removed the condition that a property must be three storeys or higher before it required a licence. Owners of properties affected by the changes, announced in February last year, had until October to apply for a new HMO license.

Revenue generated through the HMO application process, by Greater Manchester local authority:

(rounded to the nearest pound)

Bolton

YearRevenue
2013/14£6,344
2014/15£1,473
2015/16£5,264
2016/17£4,460
2017/18£9,722

 

Bury

YearRevenue
2013/14£0
2014/15£2,246
2015/16£1,186
2016/17£1,135
2017/18£1,774

 

City of Manchester

YearRevenue
2013/14
2014/15
2015/16£132,784
2016/17£167,495
2017/18£373,637

 

City of Salford

YearRevenue
2013/14£15,899
2014/15£33,494
2015/16£25,572
2016/17£48,750
2017/18£85,171

 

Oldham

YearRevenue
2013/14£1,328
2014/15£1,070
2015/16£1,615
2016/17£5,673
2017/18£6,105

 

Rochdale

YearRevenue
2013/14£15,375
2014/15£18,630
2015/16£8,500
2016/17£2,967
2017/18£5,578

 

Stockport

YearRevenue
2013/14£1,684
2014/15£3,116
2015/16£2,593
2016/17£7,547
2017/18£6,310

 

Tameside

YearRevenue
2013/14£3,500
2014/15£3,000
2015/16£3,500
2016/17£1,000
2017/18£7,000

 

Trafford

YearRevenue
2013/14£1,674
2014/15£13,106
2015/16£16,193
2016/17£12,869
2017/18£2,162

 

Wigan

YearRevenue
2013/14£5,480
2014/15£3,956
2015/16£4,494
2016/17£6,729
2017/18£5,592

 

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Robert Firth

Robert Firth

Robert is a staff writer for Inside Property Investing.