Why does the government want HMOs to be licensed?
Larger HMOs such as bedsits and shared houses,
often have poorer physical and management standards than other
privately rented properties. The people who live in HMOs are
amongst the most vulnerable and disadvantaged members of society.
As HMOs are the only housing option for many people, the government
recognises that it is vital that they are properly regulated.
Licensing is intended to make sure that:
- landlords of HMOs are fit and proper people,
or employ managers who are;
- each HMO is suitable for occupation by the
number of people allowed under the licence;
- the standard of management of the HMO is
adequate
- high risk HMOs can be identified and targeted
for improvement.
Where landlords refuse to meet these criteria the
Council can intervene and manage the property so that:
- vulnerable tenants can be protected;
- HMOs are not overcrowded;
- Councils can identify and support landlords,
especially with regeneration and talking antisocial
behaviour.
Do all HMOs have to be licensed?
No. Under the Housing Act 2004 there are three
types of licensing:
- Compulsory (required by law) licensing of HMOs
for properties that are:
- three or more storeys high;
- have five or more people in more than one
household, and
- share amenities such as bathrooms, toilets and
cooking facilities.
- Additional licensing of HMOs
A discretionary power that councils may decide to apply to a
particular type of HMO, for example, two-storey properties occupied
by three or more students of asylum seekers.
- Selective licensing of other residential
accommodation
Properties that are not subject to HMO licensing could be covered
under a selective licensing scheme. This is where the Council may
declare that certain areas, for example, where there id low demand
for housing and/or antisocial behaviour, are appropriate for
selective licensing. This licensing would cover all forms of
private rented housing , including HMOs. It is likely that at first
councils will only introduce licences for HMOs that fall into the
first group. They may introduce the other two types of licensing
later.
Please note that licensing only applies to HMOs
where rents or other considerations are payable.
How will it work?
Anyone who owns or manages an HMO that must be
licensed has to apply to the Council for a licence. The Council
must give a licence if it is satisfied that:
- the HMO is reasonably suitable for occupation by
the number of people allowed under the licence;
- the proposed licence holder is a fit and proper
person;
- the proposed licence holder is the most
appropriate person to hold the licence;
- the proposed manager, if there is one is a fit
and proper person;
- the proposed management arrangements are
satisfactory;
- the person involved in the management of the HMO
is competent;
- the financial structures for the management are
suitable.
What does a 'fit proper person' mean?
The Council will carry out checks to make sure
that the person applying for the licence is a fit and proper
person. In deciding whether someone is fit and proper the Council
must take into account:
- any previous convictions relating to violence,
sexual offences, drugs and fraud;
- whether the proposed licence holder has broken
any laws relating to housing or landlord and tenant issues;
- whether the person has been found guilty or
unlawful discrimination;
- whether the person has previously managed HMOs
that have broken any approved code of practice.
It is advisable for the landlord or manager to be
a member of a professionally recognised body, or an approved
landlords association that is affiliated to the National Federation
of Residential Landlords.
What is in a licence?
The licence will specify the maximum number of
people who may live in the HMO. It will also include the following
conditions, which apply to every licence:
- a valid current gas safety certificate, which is
renewed annually, must be provided;
- proof that all electrical appliances and
furniture are kept in a safe condition;
- proof that all smoke alarms are correctly
positioned and installed;
- each occupier must have a written statement of
the terms on which they occupy the property, for example , a
tenancy agreement.
Councils may also apply the following
conditions:
- restrictions or prohibitions on the use of parts
of the HMO by occupants.
- a requirement that the condition of the
property, its contents, such as furniture and all facilities and
amenities, bathroom and toilets for example, are in good working
order;
- a requirement that the condition of the
property, its contents, such as furniture and all facilities and
amenities, bathroom and toilets for example, are in good working
order;
- a requirement for specified works or repairs to
be carried out within a particular timeframe;
- a requirement that the responsible person
attends an approved training course.
A licence will normally last for a maximum of
five years, although it can be for a shorter period.
How much will it cost?
Landlords will have to pay a fee to cover the
administration costs of the licence procedure. This will vary
depending on the amount of time and resources that are needed to
satisfy all the licensing conditions.
More information can be found at
Department for
Communities and Local Government website and
HMO: Licence Approval and Refusal.
