Houses in multiple occupancy (HMO) - licensing

The Government has decided that certain large houses in multiple occupation (HMOs) should be subject to further regulation to protect the health, safety and welfare of occupiers. The Housing Act 2004 prescribes a compulsory licensing scheme that applied, from April 6th 2006, to all HMOs that fall into the following categories:

  • Houses with three or more storeys, including basements and HMOs with shops underneath; and
  • Houses where there is material sharing of an amenity, such as a bathroom, kitchen or toilet facilities; and
  • Houses that have five or more occupants

Every HMO that fulfils all three of these criteria will require a licence. There are strict penalties for landlords who do not comply. Licences will be considered subject to:

  • Receipt of the completed application form plus the licence fee of £559 (for 2010/2011 financial year)
  • The landlord or manager being a "fit and proper person" (see below)
  • The landlord or manager demonstrating that proper arrangements are in place for the management of the house
  • The house being reasonably suitable for the number of occupants or proposed number of occupants

The licence holder can be the owner, manager or agent, but must be the most appropriate person to hold the licence.

The licence holder must be a "fit and proper person" and the Government have decided that certain convictions preclude a person from being "fit and proper". For this purpose the Council must take into account any previous unspent convictions for the following matters when deciding whether an applicant for an HMO licence is "fit and proper":

  • Violence, sex offences, fraud or drugs;
  • Housing or Landlord and Tenant laws;
  • Unlawful discrimination

Applicants must demonstrate that they are a fit and proper person and declare any unspent convictions which the Council must have regard to. A Criminal Records Bureau (CRB) check may be requested if appropriate.

The applicant must also demonstrate that satisfactory arrangements for the management of the house are in place. Previous failures of management which have resulted in enforcement action by the Council may preclude the applicant from holding a licence.

Licences will normally last for five years but may be shorter in certain situations e.g. to enable the landlord to improve the condition and management of the house or where there is evidence that the HMO was occupied by 5 persons prior to the application.

There will be conditions attached to each licence. The Government has set out what it expects conditions to be, but Councils can also attach discretionary conditions that are appropriate to the local area.

Once a valid application containing all the necessary information and the appropriate fee has been submitted we will consult with all relevant parties (e.g mortgagees, co-owners, managers as specified) and endeavour to determine the application within three calendar months.

It is the responsibility of the owner to apply for a licence. Operating an unlicensed HMO is a criminal offence that carries, on conviction, a fine of up to £20,000. If you wish further information or think that the house you live in, manage or own requires licensing please contact our Health and Environmental Services team (This link will open in a new window) on 03450 450 063 as soon as possible.

More information

 

 

 

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