Rogue landlords avoid licencing by steering clear of defined "house in multiple occupation," or HMOs.
Landlords are buying up two-storey property and converting them to low quality self-contained units, to avoid the restriction of HMO licensing.
Planners and councilors in the Welsh town of Rhyll are criticising the narrow criteria of classification of a HMO requiring a license from the council.
The current classification of a property requiring a licence as a HMO is that the property has to have at least three floors and house more than five people in two or more households.
Many landlords have moved away from three floor properties to avoid having to obtain a licence since the schemes introduction in 2004.
This is underlined by the fact that Rhyl has at least 600 HMOs, but only 33 require a licence.
Read more on rogue HMO landlords in this BBC article.
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