Fife Council hits out at ‘scaremongering’ over HMOs in St Andrews

Fife Council increased the fees it charges the University of St Andrews for HMO (house of multiple occupancy) licences around 800 per cent, up from just £52,000 to £512,000.

Concerns were voiced that this could lead to students being priced out of university accommodation and moving into private housing, if rents were increased as a result.

But John Mills, heading of housing services at Fife Council, has hit out at claims a rise in rents is the fault of the council.

“Based on current figures, the university charges £21,000 for an individual student over three years,” he said.

“Our HMO fee for one student in that time (in an HMO of five people) is under £300. My understanding is that the university charges one of the highest residential fees in Scotland.

“There has to be some perspective here.

“Any suggestion that the council is somehow responsible for a rise in student rents is just scaremongering.”

Every HMO needs a licence to make sure health and safety standards are met for residents. The council has recently updated the charging structure for licenses, bringing it into line with other local authorities, and making sure the increasing costs of administering the system were not passed on to tax payers. Fees have not been increased since 2006.

Mr Mills added: “There should be no suggestion that this will lead to rent rises for students.

“Any rises in rent are at the discretion of the university, and there is nothing to suggest that a rise in the fees the council charges for HMO licenses should be passed on to students.

“Any charges are a very small proportion of the rental income received by HMO owners.

“I would urge any parents or students who are concerned about a potential rise in rents to raise this directly with the university, as the organisation deciding how much should be charged for student housing.”

The university currently holds 332 HMO licences, with the council charging a fee for each individual licence, which should covers administration, visits for inspections and any other costs.

The university has previously said it would have to have to find £500,000 to cover this cost and admitted it is facing an underlying deficit this year.

A report by the St Andrews Public Policy Research Group, a think tank founded and run by undergraduate students at the university, also said a rise in HMO fees will likely lead to a rise in rental fees for tenants.