House 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 HMOs 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 HMOs
- Houses converted to self contained flats before 1991 and not in
accordance with the 1991 building regulations will be HMOs
- 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
(see downloads)
LACORS Fire and Safety Guidance (see downloads)
Why are larger HMOs being licensed?
Larger HMOs, 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 HMOs are amongst the most
vulnerable and disadvantaged members of society. As HMOs are the
only housing option for many people, the government has recognised
that it is vital that these properties are effectively
regulated.
Do all HMOs 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, and
- Share amenities such as bathrooms, toilets and cooking
facilities.
- Additional Licensing - HMOs
A discretionary power that councils 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.
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.
Applications will be processed by the Council within six months
of receipt, however, you will receive an
acknowledgement letter to confirm receipt of your
application.
Fit and Proper Person
The Council will carry out 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 Order (IMO)
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 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 without 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 Order
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 number 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 Council
on 01228 817320 or e-mail housing@carlisle.gov.uk.
We will take your name, address, and an application pack will be
forwarded to you. Alternatively, you can download the
application from the link below for completion and return to
Carlisle City Council.
Application Form for a HMO Licence
(see downloads)
Application Fee
Landlords will have to pay a fee to cover the cost of the
licence procedure. The fee has now been reviewed after 5 years and
from 1st October 2011 the fee will be set at £370 based on
five lets. Applications before this date will be charged £330. An
extra £25 will still be charged for every additional letting unit.
A maximum of £500. Once a licence has been granted, a licence will
normally last for 5 years, although it can be for a shorter
period.
Public Register of HMO licences
The council has a duty under the Housing Act 2004 to maintain a
public register of all HMO licences, together with any temporary
exemption notices served and details of any interim or final
management orders made.
You can find out if a property has a license, or is applying for
a license, or you can get a full version of the public register of
HMO licenses by e-mailing us at housing@carlisle.gov.uk
or by phoning us on 01228 817341.
A restricted electronic version of the public register of HMO
licences is now available from the Council and is available upon
request.
The full version of the Public Register, which includes the
landlords details, can only be viewed by attending the office as
indicated above.