Houses in Multiple Occupation (HMO)

The Housing Act 2004 has introduced Mandatory licensing of House in Multiple Occupation (HMO) and a new definition of an HMO. It has also made provision for Councils such as Carlisle to continue to operate previous HMO registration control schemes, and has provided transitional arrangements to move certain HMO's form registration schemes into transitional licensing schemes.

The following information is provided to give a brief overview of the HMO definition and provide information on the types of HMO requiring a licence.

What is an HMO?

A dwelling will be an HMO if three or more unrelated people are sharing facilities
Buildings comprising non self contained flats are HMO's
Houses converted to self contained flats before 1991 and not in accordance with the 1991 building regulations will be HMO's
A self contained flat converted to 1991 Building regulations or later if occupied by more than three unrelated persons will be an HMO

The change in definition particularly impacts on smaller shared houses, those occupied by students, which have been brought back into the HMO definition.

Amenity Standards in Licensable Houses in Multiple Occupation

Lacors Fire and Safety Guidance

Why are larger HMO's being licensed?

Larger HMO's, such as bedsits and shared houses, are often linked to poorer physical and management standards than other private rented property. The people who live in HMO's are amongst the most vulnerable and disadvantaged members of society. As HMO's are the only housing option for many people, the government has recognised that it is vital that these properties are effectively regulated.

Do all HMO's have to be licensed?

Under the Act. There are three types of property, which need to be licensed.

Mandatory licensing - of properties that are;
- Three or more storeys high
- Have five or more people in more than one household, an
- Share amenities such as bathrooms, toilets and cooking facilities.
Additional Licensing - HMO's
A discretionary power that council's may decide to apply to a particular type of HMO, for example, to include an existing registration scheme.
Selective licensing - of other residential accommodation.
Properties that are not subject to HMO licensing could be covered under a selective licensing scheme. This where the Council may declare that certain areas, for example, where there is low demand for housing or issues with anti social behaviour, maybe appropriate to selective licensing.

The City of Carlisle (Registration of Housing in Multiple Occupation) Control Scheme 1998

Mandatory HMO Licensing has replaced HMO registration control schemes with effect form 6 April 2006, any previously registered property except self-contained flats that do not comply with the 1991 building regulations or later will be included in the transitional arrangements.

All existing registrations that expire after 6 July 2006 on licensable HMO will be converted to HMO licences. We are still in the process of processing this particular information, but landlords should have their passported licence before the end of 2006.

From a draft circular it appears that self contained flats not complying with Building Regulations will require licensing form 1 October 2006. We are awaiting the passporting arrangements for these properties.

Additional HMO Licensing Notice

How does Licensing work?

Anyone who owns or manages an HMO, that maybe subject to licensing, must apply to the Council for a licence.

The Council must grant a licence, if it is satisfied that:

The proposed licence holder is a Fit and Proper Person.
The HMO is suitable for occupation for the number of persons allowed on the licence.
The proposed licence holder is the correct person to hold the licence
The proposed management of the property is satisfactory.
The Financial structures for the management are suitable

Fit and Proper Persons

The Council will carryout checks to make sure that the person applying for a licence is a Fit and Proper Person. The Following will be taken into account when making this assessment;

Any previous convictions relating to drugs, fraud, sexual offences or violence.
If the proposed licence holder has committed any offences relating to housing or tenant law.
The proposed licence holder has been found guilty of any unlawful discrimination.
If the proposed licence holder has broken any previous HMO Code of Practice.

If a person does not meet the conditions set and the landlord is not a Fit and Proper Person, then the Council may refuse to grant a licence.

Interim Management Orders (IMO)

If an landlord fails to bring an HMO up to the required standard, or fails to meet the Fit and Proper person criteria, the Council can take over the management of the property. Under the Act an Interim Management Order (IMO), allows the Local Authority to manage the property for up to a year, until suitable management arrangements have been made. The owner does keep their right as an owner. If the IMO expires and no improvement in management has been made, then the Council can issue a Final Management Order (FMO). This can last up to five years and be renewed following this period.

Penalties for operating with out a Licence

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

Fails to apply for a licence for a licensable property
Allows a property to be occupied by more than are permitted under the licence.

A fine of up to £20,000 maybe imposed. In addition, contravening any of the licence conditions can result in fines of up to £5,000.

Rent Repayment Orders

A tenant living in a property that should have been licensed, but was not, can apply to the Residential Property Tribunal (RPT) to claim back any rent they have paid during the unlicensed period.

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 be give clear evidence of this, then they 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 no longer needs to be licensed. If this situation is not resolved, then a second Temporary Exemption can be granted.

Applying for a HMO Licence

If you think you have a property that needs to be licensed, please contact Private Sector Housing Services, at the City Councils on 01228 817320 or email HousingandHealth@carlisle.gov.uk. We will take your name, address, and an application pack will be forwarded to you.

Application Fee

Landlords will have to pay a fee to cover the cost of the licence procedure. The Fee is a standard charge of £330, based on five lets. An extra £25 will be charged for every additional letting unit. A maximum of £500. Once a licence has bee granted, a licence will normally last for 5 years, although it can be for a shorter period.

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