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Houses of Multiple Occupation - Licensing

The Housing Act 2004 introduces a mandatory scheme to licence specific types of high risk Houses in Multiple Occupation (HMO).  It applies to larger, higher risk HMOs of 3 or more storeys, occupied by 5 or more people who share a facility such as a bathroom.

Definition of an HMO

An HMO means a building or part of a building (eg a flat):

  • which is occupied by more than one household 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 occupied by more than one household and which is a converted building which does not entirely comprise self contained flats (whether or not there is also a sharing or lack of amenities);  or
  • which comprises entirely of converted self contained flats and the standard of conversion does not meet, at a minimum, that required by the 1991 Building Regulations and more than one third of the flats are occupied under short tenancies.

To be categorised as an HMO a property must also be occupied by more than one household:

  • as their only or main residence or
  • as a refuge by persons escaping domestic violence;
  • by students undertaking a full time course of further or higher education; or
  • for some other purpose that is prescribed in regulations.

In addition, the households are defined as comprising:

  • Families (including single persons and co-habiting couples (whether or not of the opposite sex); or
  • Any other relationship that may be prescribed by regulations;

There are exemptions to the current definition of what is an HMO.  These are as follows:

  • A building which is occupied solely or principally by persons who occupy it for the purpose of undertaking a full time course of further or higher education at a specified educational establishment and the person managing the property is the educational establishment.  The specification of the educational establishments is to be made by the Secretary of State;
  • Buildings occupied by religious communities;
  • Buildings occupied by an owner (and their family) plus two lodgers;
  • Buildings occupied only by two persons who form two households, eg two person flat share;
  • Buildings regulated otherwise than under the Act eg care homes, bail hostels etc.
  • Buildings entirely occupied by freeholders or long leaseholders;

 

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Amenity & Space Standards

HMO management regulations published in 2006/2007 require an "adequate number of bathrooms, toilets and wash hand basins suitable for personal washing of persons sharing those facilities" and there "must be a kitchen, suitably located in relation to the living accommodation and of such layout and size and equipped with such facilities so as to adequately enable those sharing the facilities to store, prepare and cook food".

 

New amenity and space standards for HMOs in the Borough of Fareham have recently been submitted to the Executive for approval, and these should be made formal towards the end of September 2009.

 

Licensable HMO

The mandatory licensing scheme has targeted larger, higher risk HMOs because:

  • Physical conditions in some of these HMOs can be poor;
  • There is a significantly increased risk of dying or being injured in a fire in such properties;
  • The fatality rate in HMOs of three or more storeys is around four times higher than that for one or two storey HMOs;
  • A range of health, safety and general welfare problems for residents can arise where structural conditions are unsuitable for the number of persons accommodated, or where conversion has been poorly undertaken;
  • There are often problems of management in such HMOs, especially where facilities are shared;
  • Tenants in these HMOs are often vulnerable and may not have access to other housing options.

The mandatory scheme is a national scheme affecting every HMO in the country that is of the specified size.

 

"A house of 3 storeys or more (including basements and/or attics), occupied by 5 or more persons that compromise more than one household."  The licence holder must be deemed to be a fit and proper person to manage or control a licensed HMO.

 

Mandatory licensing were introduced in April 2006 and it is the responsibility of landlords or persons in control of a licensable HMO to apply to the Council for a licence. 

Exemptions in relation to licensable HMOs

The following buildings are not HMOs (except for Housing Act 2004 Part 1 of the Housing Health and Safety Rating System).

  • A building where the person managing or having control of it is:
    • A local housing authority
    • A registered social landlord
    • A police authority
    • A fire and rescue authority
    • A health service body

 

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How to obtain a licence

A person owning or managing an HMO which is required to be licensed, must apply to the council for a licence for that property.  Please print out the mandatory licensing of houses in multiple occupation application guidance notes (382 Kb) PDF logoor contact 01329 236100 to receive one through the post.

 

There will be a licence 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 verify all the licensing conditions.  There will be a 10% discount for landlords who are members of a landlord/property management association.  A licence will last for a period of up to 5 years.  There is no pro-rata refund of the fee if the licence is surrendered after it has been granted. 

 

A local authority must grant a licence if it is satisfied that:

  • The HMO is reasonably suitable for occupation by the number of persons permitted under the licence, having regard at least to the minimum prescribed standards of amenities and facilities.
  • The licence holder would be a fit and proper person.

In deciding whether a person is fit and proper, the local authority must have regard, amongst other matters:

  • to any previous convictions relating to violence, sexual offences, drugs or fraud;
  • and whether the proposed licence holder has contravened any laws relating to housing or landlord and tenant issues;
  • and whether the person has been found guilty of unlawful discrimination practices;
  • and whether the person has managed HMOs otherwise than in accordance with any Approved Code of Practice.

It is however, a matter for the local authority to determine the relevance of these considerations (or other matters it considers to be relevant) in deciding whether or not the person is fit and proper.

 

The proposed licence holder is the most appropriate person to hold the licence. 

 

The proposed manager, if not the licence holder, is fit and proper.

 

If the local authority is not satisfied that it can grant a licence under the above conditions it must refuse to grant the licence and make an Interim Management Order (IMO).  The IMO enables the local authority to take over the management of HMOs for a period of at least 12 months.

 

 

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Contents of a licence

A licence will specify the maximum number of occupants who may occupy the HMO and may also include conditions relating to:

 

  • The management of the house, including taking such steps as are reasonable to deal with anti-social behaviour of the occupants and people visiting it;
  • The condition of the house, its contents (eg furniture), the amenity standards (other than in respect of a Housing Health and Safety Rating System identified hazard);
  • A requirement to carry out specified works or take actions, within such times as is specified in the licence.

Breaches of licence conditions

The licence holder or manager of an HMO who allows it to be occupied by more persons than are permitted under the licence commits an offence and can be fined up to £20,000.

If that person breaches or fails to comply with a condition of the licence he will also commit an offence and may be fined up to a maximum of £5,000.

Duration of licences

The licence will normally be granted for a period of 5 years.

 

 

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Further Information

Further information can be obtained from the Office of the Deputy Prime Minister at www.communities.gov.uk (this is an external hyperlink).

 

A Department of Communities and Local Government information booklet aimed at owners and landlords explains the HHSRS.  Called “Reducing the Risks” (this is an external hyperlink) it can be downloaded or ordered.

 

Alternatively you may email us at regulatory@fareham.gov.uk or telephone us on 01329 236100.