HMO Licensing, Landlord Licencing & Planning Law changes +

PIMS has a new guide to renting rooms, shared houses and HMO

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 Below covers more technical refusal, appeal, temporary and exemptions 

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.

The Meaning of “Fit and Proper Person”

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 of unlawful discrimination
• Whether the person has previously managed HMOs that have broken any approved code of practice.

The Licence

The licence will specify the maximum number of people who may live in the HMO. It will also include conditions concerning the following, which apply to every licence:

• A valid current gas safety certificate, which is renewed annually, must be provided.
• All electrical appliances and furniture are kept in a safe condition.
• 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, 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 time frame.
• A requirement that the responsible person attends an approved training course.

Duration of Licence

A licence will normally last for a maximum of five years, although it can be for a shorter period.

Cost of a Licence

Landlords will have to pay a fee to cover the administration costs of the licence procedure. The fee VARIES FROM COUNCIL TO COUNCIL but is likely to be in the region of £450 - £500 for a 5 year licence (£350 for the licence, payable per property - £100 per “Fit & Proper Person Assessment”, payable per landlord if applications for all of their licensable premises are submitted at the same time).

Arrangements if a Licence is Refused

The Council has powers to refuse a licence, if the property does not meet the conditions set out above and the Landlord or manager is not a fit and proper person. If a Landlord fails to bring an HMO up to the required standard, or fails to meet the fit and proper person criteria, the Council can issue an Interim Management Order (IMO), which allows it to step in and manage the property. The owner keeps their rights as an owner. This order can last for a year until suitable permanent management arrangements can be made. If the IMO expires and there has been no improvement, then the Council can issue a Final Management Order. This can last up to five years and can be renewed.

Rights of Appeal

The Landlord may appeal if the Council decides to:

• Refuse a licence.
• Grant a licence with conditions.
• Revoke a licence.
• Vary a licence.
• Refuse to vary a licence.

The appeal must be to the Residential Property Tribunal, normally within 28 days.

Temporary Exemption from Licensing

If a Landlord or person in control of a property intends to stop operating it as an HMO or reduces the numbers of occupants and can give clear evidence of this, then he or she can apply for a Temporary Exemption Notice. This lasts for a maximum of three months and ensures that a property in the process of being converted from an HMO does not need to be licensed. If the situation is not resolved, then a second Temporary Exemption Notice can be issued. When this runs out the property must be licensed, become subject to an Interim Management Order, or cease to be an HMO.

Penalties

It is an offence if the landlord or person in control of the property:

Local Authority HMO Sites