Multiple occupancy homes
Licence summary
Houses in Multiple Occupation (HMO’s) provide an important
supply of housing, often to vulnerable households. Research has
shown that tenants living in a
HMO
can be adversely
affected by the actions of another occupant, therefore, it is
essential that high standards of management are in place.
An HMO is defined as a property
comprising of 3 or more unrelated persons in two or more households
who may share amenities such as bathroom, toilet and cooking
facilities. This also includes properties which have been converted
into self-contained flats which do not meet the 1991 Building
Regulations and at least one third are occupied under
short-hold tenancies.
The Housing Act 2004 has introduced the
mandatory licensing of larger Houses in Multiple Occupation which
are 3 or more storeys with 5 or more occupiers making up 2 or more
households, and the option for local authorities to include smaller
HMO’s as part of their additional licensing schemes.
Rochdale Borough Council has taken
up this option and included its smaller HMO’s into their Licensing
Scheme, ie 2 storey properties and properties with 3 or more
individuals or households.
Department for
Communities and Local Government - more information on
HMO.
Eligibility criteria
The criteria for licensing are:
- Mandatory licensing: will apply to
HMO
’s with three
or more storeys, occupied by five or more persons and who
form two or more households.
- Additional licensing: can be introduced by
local authorities (with government consent) to licence smaller
HMO’s where deemed necessary.
- Selective licensing: covers all private rented
properties within a selective area designated by a local authority.
The local authority must be able to show that the area is suffering
from low demand and/or anti social behaviour.
We will be introducing additional licensing to licence smaller
HMO
’s but we
will not, at this stage, be introducing selective licensing.
To apply for a licence, you will need to contact the Landlord
Licensing team for an application form. You will need to
demonstrate to the local authority that:
- You are a fit and proper person. This may involve providing a
Criminal Records Bureau disclosure showing you have no relevant
criminal convictions.
- You have adopted procedures for tackling anti- social behaviour
issues.
- The property is suitable for the number of occupants.
- Satisfactory management standards are in place.
- Satisfactory measures for dealing with tenancy issues are in
place.
Does my
property need an HMO licence?
- pre application questionnaire (96kb pdf fiel)
Regulation summary
When a licence is not required
Just because a property is a
HMO
, it does not
automatically follow that it needs a licence.
Those not required to obtain a mandatory licence include:
-
HMO
’s that
are entirely occupied by freeholders or long leaseholders.
- Building or flats that are occupied by two single people
(households).
-
HMO
’s owned
and managed by educational establishments and buildings regulated
by other legislation, such as residential care homes or bail
hostels.
- Buildings occupied by the leaseholder and their household, and
two or fewer lodgers.
- Buildings converted into self-contained flats that meet, as a
minimum the standard laid down in Building Regulations 1991.
However, if the property falls within the designated selective
licensing area, they will require a selective licence.
Application evaluation process
Licences will be granted if:
- The house is three storey, has 5 or more tenants that share
facilities.
- The applicant is a fit and proper person and the most
appropriate person to hold the licence.
- The proposed manager has control of the house, and is a fit and
proper person to be the manager.
- The management arrangements are satisfactory.
If you fail to apply for a licence, there are a range of
sanctions that could be applied:
- It is a criminal offence to operate a licensable HMO without
applying for a licence. On conviction, you could face a fine of up
to £20,000.
- It is a criminal offence to breach your licensing conditions.
On conviction, you could face a fine of up to £5,000.
- If the council cannot grant a licence or a licence is revoked,
an Interim Management Order (IMO) must be made. This will transfer
the management of the property to the local authority. The council
can then spend monies received through rents to cover the costs of
managing the property.
- If a landlord operates a licensable HMO without a licence,
section 21 procedures to evict tenants cannot be used.
- Any rent received while the property was unlicensed may have to
be paid back to the local authority or in certain circumstances the
tenant.
Will tacit consent apply?
No. It is in the public interest that the authority must process
your application before it can be granted. If you have not heard
from the local authority within a reasonable period, please contact
it.
Apply for a licence
To apply for a licence please download the attached form
and return to us at the address provided. You should be
able to apply for these licenses in early 2010:
Licence fees
The cost of a 5 year licence is as follows:
£668 + £34 inspection fee per habitable room.
For example:
HMO
with eight
bedrooms, one communal kitchen, one communal
lounge, one communal dining room, two bath/shower rooms
and two separate WC’s = Standard application fee of £668 plus
inspection fee of 10 habitable rooms at £34 = £340.
Total fee = £1008.00 for 5 years (£201.60 per
year).
A licence will normally last for five years but in certain
circumstances a licence can be granted for a shorter period.
Failed application redress
We would ask that you contact the council’s Landlord Licensing
team initially to try and resolve the issue. If you feel that the
council has acted unfairly by failing to grant, revoking or
imposing certain sanctions on your licence, you can appeal to the
Residential Property Tribunal (RPT).
The
RPT
is an
expert independent tribunal that will act instead of the County
Court to either overturn or confirm the council’s decision. The RPT
cannot award costs unless it is found that one party acted
unreasonably.
Consumer complaint
If a licence is granted and you wish to appeal against it being
granted you may do so to a residential property tribunal within 28
days of the decision being made.