Houses in Multiple Occupation (HMOs)

What is an HMO?

A House In Multiple Occupation (HMO) is a house/flat, which is occupied by people who do not form a single household. The building may be divided into self-contained flats, bedsits, or be a shared house. Some houses may have to share the cooking and bathing facilities in which case the law sets out standards for the number of facilities for the number of occupants. The more floors a building has and the greater the number of households within the building, the greater the risk of the occupants being trapped in the event of a fire. It is important to ensure that there is an automatic fire detection system in place to warn that there is a fire somewhere in the building. It is also important that the main route out of the building (the escape route) has been protected to ensure the fire will not break through for at least 30 minutes. This will not only allow the occupants to get out but will also allow the firemen safe passage into the building to tackle the blaze. The layout of each flat is important to ensure that a fire in the kitchen or living room will not trap the occupants inside.

The rules that apply to other rented houses also apply to multi occupancy houses but there are additional standards for the number of amenities and for fire precautions. The person having control of the building has a duty to maintain it in a good standard of repair. The occupants have a duty to keep the common parts tidy and in good repair and not to tamper with equipment provided to fight fire.

The Local Authority has a duty to inspect all houses in multiple occupation in their area which is done on a risk assessment basis, dealing with the worse properties first and moving towards a regular cyclic inspection thereafter.

Licensing of Houses in Multiple Occupation

Definitions

The new definition of HMO includes any building or flat in which two or more households share basic amenities. A household is a single person, a married/cohabiting couple, or a family. Therefore HMOs will include many sharing arrangements (including joint tenancies), which have been excluded in recent years.

Extent of Licensing

From the 6th July 2006 all properties with the following criteria will be required by law to be licensed. HMOs with three or more storeys, two or more households and five or more persons must be licensed if you are in any doubt please contact the Council and ask. Not to apply for a licence could mean a 20,000 fine. Due to delays, South Beds District Council will be extending the licence application period to 21st July 2006.

Standards

The Government will not set national minimum room sizes. It prefers to give Councils the discretion to set these locally, taking account of the local property types. It hopes that training for Councils will avoid variations if not justified by differences in the local housing stock. The Government will set minimum national amenity standards for licensed HMOs. The standards currently required by this Council seem likely to meet these national standards. Local Councils will be able to require higher amenity standards than the national standards where local circumstances justify it. The government will review the need for national amenity standards after three years.

The Government expects Councils to work with neighbouring Councils to achieve local consistency. South Beds District Council is currently working with other authorities in Hertfordshire and Bedfordshire.

Management

Licensing will put less emphasis on physical conditions and fire precautions and more emphasis on assessing ownership and management. This is because the new Housing Health and Safety Rating System will require appropriate fire precautions for all homes, not just for HMOs. Instead licensing will mainly emphasise the standard of management. It will include an assessment of the landlord as a "fit and proper" person to manage.

If a Council refuses or withdraws a licence, it can take over management of the HMO. This is a last resort for landlords who consistently fail to meet legal requirements or ensure the safety and suitability of accommodation. The Council can use rent obtained from the property to meet necessary spending on the property.

Fees

The Government has not set maximum fees, to avoid all Councils simply charging the maximum. Instead Councils should set fees according to the costs of running a licensing scheme. Fees are on a sliding scale, dependent on the amount of work carried out by officers. Fees must be justified, and if Councils set excessive fees, landlord associations are likely to protest and the Government could intervene. Across Hertfordshire and Bedfordshire it has been decided that it will take approximately 9 officer hours to process an application. This is dependant on the level and accuracy of information provided by the applicant. If there are things on the form that you don't understand contact the licensing officer who will help you to complete the form. If the officer has to spend additional time researching information about he property, this time will be charged to the applicant. For properties that have more than five 'habitable rooms' there will be an additional charge of 15 minutes per room. Full details of the fees for South Beds HMOs can be found below.

Appeals

Appeals will go to new Residential Property Tribunals, instead of the County Court. Tribunal members will be various kinds of expert, not judges. Tribunal procedures will be informal, making legal representation generally unnecessary.

Penalties

The maximum fine for managing an unlicensed HMO, which requires licensing, or for exceeding the permitted number of occupiers, is 20,000. The maximum fine for breaking a licensing condition is 5,000. As well as these criminal penalties, licensing (unlike the previous registration) has new civil penalties when a HMO requiring licensing is unlicensed: Section 21 notices (to seek possession of an Assured Shorthold Tenancy) will not be effective.

A Residential Property Tribunal can make a "rent repayment order" in certain circumstances. This orders the repayment of Housing Benefit to the Council, or of rent to the tenant.

Contact: Private Sector Housing Team
Tel: 01582 474064
Email:private.housing@southbeds.gov.uk

Useful Documents