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HMOs that require licences

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Greg Myles
Greg Myles

HMOs that meet certain criteria must be licensed by the local authority. An HMO requires a license if it has 5 or more tenants, 3 or more storeys, and includes 2 or more households. Local authorities can also designate additional licensing for all HMOs in a particular area if there are issues with poorly managed properties. To obtain a license, a landlord must submit an application, pay a fee, and the property must meet suitability requirements for amenities and the landlord must be deemed a fit and proper person. Failing to license an HMO that requires it is a criminal offense that can result in prosecution or civil penalties.

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HMOs that require licenses
Mandatory licensing of a HMO The 5-3-2 rule The property must have a license if… • 5 or more tenants and • 3 or more storeys and; • 2 or more households • Building comprising only self-contained flats are exempt from mandatory licensing • A combination of self-contained and non self-contained accommodation will count as if all are non self-contained
Additional licensing • Power for local authority to impose licensing of all HMO’s (not just those that meet the mandatory 5-3-2 rule) • May be in a designated area, or the whole borough • Available if significant proportion of HMOs are poorly managed an causing problems for residents (S56 Housing Act ‘04) • Requires 10 week consultation period (and may require approval from Secretary of State)
How to obtain a license • Submit application • Pay a fee – this will vary for each local authority • 5 years – maximum amount of time that a license will last for • License applies to the specified property in the application – it is not transferable • Suitability of property – the local authority may stipulate what amenities such as bathroom/kitchens need to be provided
How to obtain a license • Suitability of persons and management arrangements – local authority decides if landlord is a ‘fit and proper’ person • Mandatory conditions are set (such as requirement for gas cert, tenancy agreement) and discretionary conditions (such as certain repairs must be done, or landlord to attend training course)
Offences and enforcement Criminal offence to be a person having control of or managing a licensable HMO without a license. Local authority may prosecute or choose to apply civil penalty of up to £30,000’ Unable to use S21 Local authority or occupier can apply for a rent Repayment Order (up to 12 months rent repaid)

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HMOs that require licences

  • 2. Mandatory licensing of a HMO The 5-3-2 rule The property must have a license if… • 5 or more tenants and • 3 or more storeys and; • 2 or more households • Building comprising only self-contained flats are exempt from mandatory licensing • A combination of self-contained and non self-contained accommodation will count as if all are non self-contained
  • 3. Additional licensing • Power for local authority to impose licensing of all HMO’s (not just those that meet the mandatory 5-3-2 rule) • May be in a designated area, or the whole borough • Available if significant proportion of HMOs are poorly managed an causing problems for residents (S56 Housing Act ‘04) • Requires 10 week consultation period (and may require approval from Secretary of State)
  • 4. How to obtain a license • Submit application • Pay a fee – this will vary for each local authority • 5 years – maximum amount of time that a license will last for • License applies to the specified property in the application – it is not transferable • Suitability of property – the local authority may stipulate what amenities such as bathroom/kitchens need to be provided
  • 5. How to obtain a license • Suitability of persons and management arrangements – local authority decides if landlord is a ‘fit and proper’ person • Mandatory conditions are set (such as requirement for gas cert, tenancy agreement) and discretionary conditions (such as certain repairs must be done, or landlord to attend training course)
  • 6. Offences and enforcement Criminal offence to be a person having control of or managing a licensable HMO without a license. Local authority may prosecute or choose to apply civil penalty of up to £30,000’ Unable to use S21 Local authority or occupier can apply for a rent Repayment Order (up to 12 months rent repaid)