HMO Licensing

 

Definitions

The new definition of HMO includes any building or flat in which two or more households share basic amenities. A household is a single person, a married/cohabiting couple, or a family. Therefore HMOs will include many sharing arrangements (including joint tenancies) which have been excluded in recent years.

HMO Licence application form

Click here for HMO Licence application form

Extent of Licensing

Since the 6th April 2006 all properties with the following criteria are required by law to be licensed. HMOs with three or more storeys, two or more households and five or more persons must be licensed if you are in any doubt please contact the Council and ask. Not to apply for a licence could mean a £20,000 fine. Mid Beds DC will “passport” through  all  HMOs currently registered in the Council's Registration Scheme into the new licensing scheme. These will need to renew the licence after three years.  Mid Beds DC was asked by existing licensed  HMO landlords to apply to the DCLG for an “additional” licensing scheme to include  2 storey, high occupancy  HMOs. This was done but the DCLG informed this Council on the 8th December 2006 that they did not meet the criteria for such an additional scheme.  

Standards

The Government will not set national minimum room sizes. It prefers to give Councils the discretion to set these locally, taking account of the local property types. It hopes that training for Councils will avoid variations if not justified by differences in the local housing stock. The Government has set minimum national amenity standards for licensed HMOs. This Council has produced detailed guidance that will supplement these national standards in association with the local authoriites in Hertfordshire and Bedfordshire. The standards are designed to be flexible to accommodate most circumstances by agreement with the local Council officers. The government will review the need for national amenity standards after three years.

Management

Licensing will put less emphasis on physical conditions and fire precautions than HMO registration. This is because the new Housing Health and Safety Rating System will require appropriate fire precautions for all homes, not just for HMOs. Instead licensing will mainly emphasise the standard of management. It will include an assessment of the landlord as a “fit and proper” person to manage.

If a Council refuses or withdraws a licence, it can take over management of the HMO. This is a last resort for landlords who consistently fail to meet legal requirements or ensure the safety and suitability of accommodation. The Council can use rent obtained from the property to meet necessary spending on the property.

Fees

The Government will not set maximum fees, to avoid all Councils simply charging the maximum. Instead Councils should set fees according to the costs of running a licensing scheme. Fees are likely to be on a sliding scale, dependent on the amount of work carried out by officers. Fees must be justified, and if Councils set excessive fees, landlord associations are likely to protest and the Government could intervene. Across Hertfordshire and Bedfordshire it has been decided that it will take approximately 9 officer hours to process an application. This is dependant on the level and accuracy of information provided by the applicant. If there are things on the form that you don't understand contact the licensing officer who will help you to complete the form. If the officer has to spend additional time researching information about he property this time will be charged to the applicant. For properties that have more than five 'habitable rooms' there will be an additional charge of 15 minutes per room. The standard licence fee is likely to be around £300 per property provided all details are provided at the time of application or it will cost more if the officer has to spend additional time on the application. 

Appeals

Appeals will go to new Residential Property Tribunals, instead of the County Court. Tribunal members will be lawyers, surveyors, environmental health officers and lay persons, not judges. Tribunal procedures will be informal, making legal representation generally unnecessary.

Penalties

The maximum fine for managing an unlicensed HMO which requires licensing, or for exceeding the permitted number of occupiers, is £20,000. The maximum fine for breaking a licensing condition is £5,000. As well as these criminal penalties, licensing (unlike the previous registration) has new civil penalties when a HMO requiring licensing is unlicensed: Section 21 notices (to seek possession of an Assured Shorthold Tenancy) will not be effective.

A Residential Property Tribunal can make a “rent repayment order” in certain circumstances. This orders the repayment of Housing Benefit to the Council, or of rent to the tenant.

Contact

Mid Beds District Council, Home Environment Team on

Tel: 08452 30 40 40 or 01462 611 222 or email: customer.services@midbeds.gov.uk