An insurer is warning landlords to get ready for new licensing and room size laws regarding houses in multiple occupation (HMOs), despite the fact the proposals have yet to be finalised.

Simple Landlords Insurance has issued a poll claiming that 40% of HMO landlords were unaware of the Government proposals to introduce new mandatory licensing as well as minimum standards on room sizes.

It claims the proposals had been delayed by the General Election and will be introduced instead next spring with a six-month adjustment period.

Alex Huntley, head of operations at Simple Landlords Insurance, said 60,000 HMOs across the UK currently require a licence but said it is estimated that a further 174,000 properties will be subject to mandatory licensing changes aimed at improving housing conditions.

Huntley said: “From our research and our conversations with landlords, it’s clear that not everyone is aware of the proposals for new HMO regulations. That could leave some with rooms they can no longer rent, undersized living areas – and a serious gap in their income.

“Larger landlords with HMO portfolios seem to be better prepared than emerging landlords. It’s our job as an insurer to be the ‘safety net’ that gives landlords the freedom to invest while mitigating risk.”

However, the lack of awareness may actually be because the Government says it is still reviewing feedback.

The consultation, which closed in December, proposed the removal of the three-storey rule when classifying HMOs and incorporates flats that are situated above or below commercial premises.

It also suggests a minimum room size requirement of 6.52sqm, a fit and proper person test for licensing and a requirement for landlords to provide sufficient storage facilities to deal with the holding and disposal of all household waste.

Fines of up to £30,000 are proposed for failure to comply.

A noticed on the consultation webpage says the Government is still considering feedback.