An Oxford landlady who has rented out a three-bedroom house for the past five years says she may have to sell it when new city council rules come into force on January 31.

The new rules covering houses in multiple occupation (HMOs) mean anyone letting a property to three or more sharers, who are not members of the same family, must obtain a licence from the council – a process that involves having the property inspected, at a cost to the owner of £362.

The aim is to improve standards in the rented housing market.

Kathy Whysall fears the council might demand expensive alterations at her property in Hollow Way, Cowley, and there is an annual £150 licence renewal fee.

She said: “I only make about £4,000 a year out of the property.

“If I get to the point where I would have to spend £4,000, I would probably sell it, and that would mean there would be one less private rental out there.

“I am already paying out for council tax and mortgage. It’s just a money-making exercise by the council and I think they will push people out of the rental market.”

Oxford City Council’s executive member for housing, Joe MacManners, said: “We need to take this action to ensure properties meet basic minimum standards.

“Given that the HMO market is generally more lucrative than family rental, it wouldn’t seem to make much financial sense for landlords to not get a licence.”

He added: “The majority of HMOs will receive a licence without requiring money to be spent on bringing them up to standard.”