HMO definition and HMO licensing

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HMO definition and HMO licensing

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HMO definition

• S254 Housing Act 2004
• Complex definition
• Has to meet one of the basic tests
• Lots of exemptions

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Definition of household

• Members of the same family
• Married or live together as husband and wife
• One person is a relative of the other
• A couple together with relatives of either party

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Definition of household

• Where an owner and their family have other
  persons living with them who carry out work, or
  perform a service of an exclusively domestic
  nature for the owners, the accommodation is
  supplied to these persons by the owners and no
  rent is paid for this accommodation. E.g. Nanny,
  carer, servant, personal assistant

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HMO - standard test

• Property consisting of 1 or more units of living
  accommodation, but not entirely consisting of
  self contained flats. Must be occupied by persons
  not forming a single household and amenities are
  shared (or lacking). Eg student shared houses

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HMO self contained flat test

• A self contained flat occupied by persons who do
  not form a single household and where amenities
  are shared (or lacking)

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HMO Converted building test

• Building converted into 1 or more units of living
  accommodation, but not entirely consisting of
  self contained flats and occupied by persons not
  forming a single household.

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HMO Certain converted blocks

• Building converted into self contained flats
  where conversion work did not and still does not
  meet appropriate building standards and less than
  2/3 of the flats are owner occupied.

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Exemptions

• Building managed by LAs, RSLs, NHS, Police, Fire
  Authority
• Buildings where occupation governed by other
  legislation, eg prisons, care homes
• Buildings occupied by students and managed by
  education establishment and signed up to ACoP
• Buildings occupied by religious communities
• Buildings occupied by 2 persons who do not form a
  single household
• Buildings mainly owner occupied, with max 2
  lodgers

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Examples Is it an HMO?

• 2 storey house, occupied by 5 students
• 4th floor flat in purpose built block occupied by
  a couple, their child, and the mother of one of
  the couple
• Large first floor flat in a house converted with
  1991 Building Regs, occupied by 3 unrelated
  professionals
• 3 storey house occupied by a family of 3, plus 1
  lodger

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Mandatory HMO licensing

• Came into force 6th April 2006
• HMOs of 3 storeys or more, with 5 or more
  occupants, forming 2 or more households
  (prescribed definition)
• Storeys includes basements and attics if for
  occupation. Also includes buildings where
  commercial use on ground floor and accommodation
  above
• Converted blocks of flats not complying with
  Building Regs and mainly owner occupied are
  exempt from mandatory licensing
• Link with HHSRS ensure no category 1 hazards
  within 5 years of licence

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Mandatory HMO licensing - Aims

• Landlords are fit and proper persons
• Minimum management standards
• Vulnerable tenants are protected
• High risk HMOs and their landlords are identified

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The process

• Landlords must apply and provide specific
  information, documents and a fee (except if
  Temporary Exemption Notice served)
• Sign declarations, including fit and proper person

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Fit proper person

• Have regard to the following evidence
• Committed offences involving fraud, dishonesty,
  violence, drugs or certain sexual offences
• Unlawfully discriminated on grounds of sex,
  colour, race ethnic or national origins, or
  disability in carrying out any business
• Contravened any provision of housing or landlord
  tenant law
• LA may also consider the above offences in
  relation to persons associated with proposed
  licence holder

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Other considerations before licensing

• Property must be reasonably suitable for
  occupation by a specified number of persons
• Satisfactory management arrangements must be in
  place
• Do people proposed to be involved in management
  have sufficient level of competence?
• Are they fit proper?
• Are proposed management structures and funding
  arrangements suitable?

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Granting a licence

• Licence relates to one property and one person
  only
• Issue for maximum of 5 years, but can be less
• Mandatory conditions are automatically attached,
  but LA can add discretionary conditions

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Mandatory conditions

• Production of annual gas safety certificate
• Electrical appliances must be safe
• Furniture must meet relevant fire safety
  regulations
• Mains wired smoke detectors must be provided in
  communal areas
• Tenants must have written statement of terms
• Landlord must be able to prove all of these items
  if asked by LA

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Discretionary conditions

• Examples may include
• Restrictions on use of parts of the property
• Steps to reduce anti-social behaviour
• Facilities to be provided to meet suitability
  requirements
• Requirement for landlord/manager to attend
  appropriate training courses
• Not for repairs
• Licence holder must comply with mandatory and
  discretionary conditions

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Other powers in relation to licences

• LA may refuse to grant a licence if no suitable
  fit and
• proper person can be found
• Licence can be varied at request of licence
  holder, etc or on LAs own initiative
• Licence can be revoked
• With agreement of licence holder
• Serious or repeated breaches of conditions
• No longer fit proper person
• Property no longer subject to licensing

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Offences

• Operating an unlicensed HMO that should be
  licensed
• Maximum fine of 20,000
• Application for Rent Repayment Orders
• S21 notices (HA1988) cannot be served on assured
  shorthold tenant of an unlicensed property
• Breaching any conditions of the licence
• Maximum fine of 20,000 for occupation condition
• Maximum fine of 5,000 for other conditions

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Other sanctions

• If property not licensed, but should be, LA must,
  in some
• circumstances, or may in others, make
• Interim management orders
• Special interim management orders
• Final management orders
• Protects health and safety of occupants and
  visitors through proper management and carrying
  out any required works.

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Licensing progress

• 336 HMOs currently licensed under the mandatory
  scheme
• Applications still coming in, although more
  slowly
• Pursuing a number of individuals who have not
  completed an application
• Carrying out visits to verify licensable HMOs
• Preparing cases for potential prosecution for
  non-licensing

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Contacts

• Private Housing
• Safe Homes Team
• Southbrook Rise
• 4-8 Millbrook Road East
• Southampton
• SO15 1YG
• Tel [phone]
• E-mail shared.housing_at_southampton.gov.uk