In more detail
Poorly managed Houses in Multiple Occupation (HMOs) can endanger the lives of tenants and reduce the quality of life in neighbourhoods in which they are focused. Parliament has given local councils powers to licence some types of HMO; and to ask government for approval to extend these powers more widely to cover HMOs in certain areas.
Legal Definition
An HMO is a building or part of a building (like a flat) which is occupied as a main residence by more than one household (individuals count as separate households and accommodation like Bed and Breakfasts don’t count as HMOs unless they are not the occupants main residence)in return for some form of payment (rent, fees etc) and:
- In which more than one household shares an amenity (or the building lacks an amenity) such as a bathroom, toilet or cooking facilities
- OR which is a converted building that is not entirely self-contained flats (whether or not there is also a sharing, or lack, of amenities as described above)
- OR which is a converted building made up entirely of self- contained flats but where the standard of conversion does not meet the minimum that is required by the 1991 Building Regulations, and more than one third of the flats are occupied under short tenancies.
- AND which is occupied by at least three people, none of which is the resident landlord.
Licensing of HMOs
The Housing Act 2004 introduced licensing for HMOs. Under the law there are two types of HMO licensing: mandatory and additional licensing:
Licensing is mandatory (compulsory) for all HMOs which have three or more floors and are occupied by five or more persons forming two or more households.
Councils can impose additional licencing on other sorts of HMO in its area which are not subject to mandatory licensing. A local council can do this if it considers that a significant proportion of these HMOs are being managed poorly enough to cause a problem to tenants or the wider neighbourhood.
Before designating an area to be subject to additional licensing, the local council must be sure that a significant proportion of HMOs in that area are causing problems for tenants or the neighbourhood due to poor management. The council must then apply to government to allow it to extend licencing to the area. The landlords who would be affected are consulted and government approval is needed.
Once an area has been designated, the licensing of HMOs in it becomes compulsory. HMO licensing requires landlords to apply for a licence every five years from the local council to run the property as an HMO. The council can issue a licence for a shorter period if it decides to and it can charge landlords a fee to cover the costs of licensing. Councils do not have to inspect premises to licence them, but they can. They can also require other information that will show the HMO is well- managed.
In making a decision about whether to licence an HMO, the council must decide whether the accommodation is suitable and fit to be used for the purpose; whether the persons running it are fit to do so; whether the property is unsafely overcrowded. Landlords must for example fit smoke alarms, have gas and electrical appliances periodically tested and issue statements of rights to tenants. The council can attach conditions to the licence including stipulating how the licence holder must respond to the behaviour of tenants and the way the property is used.
Unlicensed HMOs
If the council turns down an application to licence a property for use as an HMO, there is a right of appeal to a Residential Property Tribunal. If the landlord is unsuccessful on appeal, then the property may not be used as an HMO. The offence of running an HMO that needs a licence without a licence is punishable by a fine of up to £20,000 on conviction. The council may also gain a rent repayment order for the value of up to 12 months Housing benefit paid to tenants at the property.
Planning Permission
Local councils can require new HMOs to gain planning permission by using what is known as a 'Article 4 Direction'. Some councils have adopted this across their whole council area. Others only require planning permission to convert housing to use as an HMO in certain specified neighbourhoods. In the video below, Councillor Jane Urquhart of Nottingham City Council explains how her council decided to require new HMOs to gain planning permission before conversion:
| Key Facts:
Landlords of certain kinds of HMO must apply to the council for a licence. Councils can apply to require additional licensing. Operating without a licence can cost landlords in fines and rent repayments. Many urban councils have taken up additional licensing. You can find out what the rules are about licensing in your neighbourhood from your council. |
Page Links from here
HMO Lobby is a network of community groups throughout England who want action on poorly managed HMOs.
The HMO Network provides information about HMOs and licensing. See also - Government information on HMOs
In this toolkit, see:
OR you can use the navigation menu above right to look at other parts of the toolkit.
BIRMINGHAM COMMUNITY PLANNING TOOLKIT DEFINITION SHEET This sheet may be reproduced in paper or electromic or any other form but please mention it was made by Chamberlain Forum Limited for Birmingham City Council supported by Department for Communities and Local Government.
| created: 2016-06-24 11:28:00 | by: admin | status: f published |