LICENSING FOR HOUSES IN MULTIPLE OCCUPATION (HMO)
LANDLORD’S GUIDE & FREQUENTLY ASKED QUESTIONS
The 2004 Housing Act introduces the licensing of Houses in Multiple Occupation (HMOs). All HMO’s which are three or more storeys, with 5 or more occupants require a licence.
Please refer to the document listed below for further information:
“LACORS Housing – Fire Safety”
These documents are available on Milton Keynes Council’s web site: http://www.milton-keynes.gov.uk/housing/private-housing-and-landlords/hmo-licensing
If you require information or advice on fire precaution or amenity standards for Houses in Multiple Occupation, or would like copies of these two documents,please contact our HMO Licensing Team on 01908 253271
If you would like some assistance in completing the enclosed application form or have any questions, please contact one of our HMO Licensing Team on 01908 253271.
Licence Fee
The fee covers the term of the licence (normally 5 years). The fee will be £300.00.
An invoice will be sent out to you on receipt of your application. If you are making more than one application, please let us know if you require separate invoices for each property. It is essential that you make payment immediately as your application is not complete without payment, and therefore you could still be prosecuted for failing to licence your property.
The Licence Application Procedure
The completed form should be returned in the replied paid envelope together with the relevant certificates.
In the vast majority of cases we will process your application without visiting your property. All licences will be issued subject to conditions, some that we are required to issue and some to require that the property complies with national and local standards. The conditions that may be attached include:
· The number of persons permitted to occupy the property
· Provision of an annual gas safety certificate
· To keep electrical appliances and furniture in a safe condition
· To keep smoke alarms in working order
· To provide tenants with a written tenancy agreement
Other conditions may also be included to deal with different aspects of individual properties, for example:
· The restriction or prohibition of the use of parts of the HMO
· An obligation on the landlord or manager to take steps to deal with anti-social behaviour of tenants or visitors
· Ensuring that the condition of the property, its contents, such as furniture and amenities are in good working order
· Carrying out specific works or repairs within a particular timeframe
· A requirement that the responsible person attends an approved training course
Once we have processed your application we will enter details of your licence on a public register that the Council is obliged by law to keep.
You should note that:
1. An HMO licence is not transferable. Where a property changes ownership the new landlord must make an application for a licence. No repayment or part payment of the licence fee will be made for any un-expired period of the licence and a full fee will be required from the new proposed licence holder.
2. Where a licence holder wishes to alter the terms of their licence, for example there is a change in occupancy levels; they need to apply for a Variation to the Licence. There is no fee for a variation.
3. It is a criminal offence to make a false statement in an application for an HMO licence, or to fail to comply with any licence condition, or to permit the property to be occupied by more than the permitted number of persons/households.
Housing Health and Safety Rating System (HHSRS)
The Council must be satisfied that the terms of the licence are met and that the HMO is free from serious health and safety hazards, as introduced by the Housing Act 2004. The Council will inspect all properties at least once during the period of the licence, which in most cases will be 5 years. We will make arrangements with you regarding this inspection. If an inspection is required so that we can process the licensing application it is likely that the HHSRS inspection will take place at that time. Inspectors authorised by the Council can legally enter any property to carry out surveys and inspections.
They have a right to enter and inspect rented property at all reasonable hours providing that 24 hours notice is given. In some cases, however, they do not have to make an appointment and may come without advance notice.
An Inspector will:
· Have a courteous manner
· Show identification
· Give feedback from any inspection such as information about defects which may be identified and guidance on how the property would be improved
· Make a clear distinction between what is recommended as good practice and what you must do to comply with the law
· Give reasons in writing for any action you are asked to take
· State what the law is when there is an apparent breach of the law
· Give reasonable time to meet statutory requirements except where there is an immediate risk to public health
· Inform of the procedures for complaining against the Council action
What is an HMO?
HMO stands for House in Multiple Occupation, which means a building, or part of a building, such as a flat, that:
· is occupied by more than one household and where more than one household shares or lacks an amenity, such as a bathroom, toilet or cooking facilities
· is occupied by more than one household and which is a converted building – but not entirely self-contained flats (whether or not some amenities are shared or lacking)
· is converted self-contained flats, but does not meet as a minimum standard the requirements of the 1991 Building Regulation, and at least one third of the flats are occupied under short tenancies
The building is occupied by more than one household:
· as their only or main residence
· as a refuge for people escaping domestic violence
· by students during term time
· for other purposes prescribed by the government
A household is:
· families (including single people and couples)
· other relationships, such as fostering, carers and domestic staff
Why does the government want HMOs to be licensed?
Larger HMOs, such as bed sits and shared houses, often have poorer physical and management standards than other privately rented properties. 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 recognises that it is vital that they are properly regulated.
Licensing is intended to make sure that:
· landlords of HMOs are fit and proper people, or employ managers who are
· each HMO is suitable for occupation by the number of people allowed under the licence
· the standard of management of the HMO is adequate
· larger HMOs can be identified and targeted for improvement
Where landlords refuse to meet these criteria the council can intervene and manage the property so that:
· vulnerable tenants can be protected
· HMOs are not overcrowded
· Councils can identify and support landlords, especially with regeneration and tackling anti social behaviour
Do all HMOs have to be licensed?
No, you must apply for a licence only if the property you own or manage meets all of the following conditions:
· The HMO is of three storeys or over (including basements and attics capable of occupation and properties which have business premises above or below residential parts)
· Containing five or more people
· Occupied by more than one household
Please note that licensing only applies to HMOs where rents or other considerations are payable.
Do I need Planning Permission?
You will require planning permission, we strongly advise you to contact Milton Keynes Council’s Planning Enquiries on 01908 252358 for further advice.
How will it work?
Anyone who owns or manages an HMO that must be licensed has to apply to the council for a licence. The council must give a licence if it is satisfied that:
· the HMO is suitable for occupation by the number of people allowed under the licence
· the proposed licence holder is a fit and proper person
· the proposed licence holder is the most appropriate person to hold the licence
· the proposed manager, if there is one, is a ‘fit and proper person’
· the proposed management arrangements are satisfactory
· the person involved in the management of the HMO is competent
· the financial structures for the management are suitable
What does a ‘fit and proper person’ mean?
The Council may carry out checks to make sure that the person applying for the licence or a relevant associate has not been involved in:
1. Offences of fraud
2. Offences of dishonesty
3. Offences of violence
4. Drug offences
5. Unlawful discrimination in business
6. Contravention of housing law
7. Breach of applicable codes of housing practice
Spent convictions will not be required to be disclosed.
It is advisable for the landlord or manager to be a member of a professionally recognised body, or an approved landlords association that is affiliated to the National Federation of Residential Landlords.
What is the Housing Health and Safety Rating System (HHSRS)?
Part 1 of the Housing Act 2004 introduces a new method of determining if a property is suitable for the health and safety of occupants. The system is a risk-based approach to assess potential risks to the health of occupants in residential properties in England and Wales. It replaces the Housing Fitness Standard set out in the Housing Act 1985 which dates back to 1919.
What are the hazards assessed by the Housing Health and Safety Rating System?
In total, the system incorporates 29 hazards for the inspector to consider which affect physiology, psychology, accidents and hygiene. The basic principle is that the property should be safe for occupation.
(a) Physiological Requirements:
Damp and mould growth, excess cold, excess heat, asbestos and manufactured mineral fibers (MMF), biocides, carbon monoxide and fuel combustion products, lead, radiation, uncombusted fuel gas, volatile organic compounds
(b) Psychological Requirements:
Crowding and space, entry by intruders, lighting, noise
(c) Protection Against Infection:
Domestic hygiene pets and refuse, food safety, personal hygiene, sanitation and drainage, water supply
(d) Protection Against Accidents:
Falls associated with baths etc, falls on level surfaces, falls on stairs etc, falls between levels e.g. windows, electrical hazards, fire, flames, hot surfaces etc, collision and entrapment, explosions, position and operability of amenities, structural collapse and falling elements
Is my property an HMO?
It will be an HMO if it is one of the following:
· A shared house lived in by people who belong to more than one family* and who share one or more facilities**.
· A house containing bed sits lived in by people who belong to more than one family* and who share one or more facilities**.
· An individual flat lived in by people who belong to more than one family* and who share one or more facilities**.
· A building of self-contained flats that do not meet 1991 Building Regulation standards.
Exemptions:
· If it is occupied by only two people
· If it is occupied by the owner (and their family if any) and one or two lodgers
· If it is occupied by a religious community
· If the occupiers have their main residence elsewhere***
· If no one in the property is required to pay rent
· If the owner or manager is a public body
· If the owner or manager is an educational institution
· A building of self-contained flats if two thirds or more of the flats are owner- occupied
· If the property is part of a guesthouse or hotel (unless an ‘HMO Declaration’ is made)
An HMO must have a licence if all three of the following apply:
1. It is an HMO (see definition of HMO above) and
2. It is three storeys or more (includes basements) and
3. It is occupied by five people or more
Exemptions:
· If the whole property is in self-contained flats
* Family – husband, wife, co-habitee, child, step-child, foster-child, grandchild, parent, step-parent, foster-parent, grandparent, brother, half-brother, sister, half-sister, aunt, uncle, niece, nephew, cousin.
** Facilities – basic amenities: WC; wash hand basin, shower, bath; cooking facilities.
*** Accommodation used by full-time students while they are studying is taken to be their main residence.
How long will licences last for?
Licences will normally be granted for five years but we may grant them for short periods.
What is a licence?
The licence will specify the maximum number of people who may live in the HMO.
It will also include the following conditions, which apply to every licence:
· A valid current gas safety certificate, which is renewed annually, must be provided
· Proof that all electrical appliances and furniture are kept in a safe condition
· Proof that all smoke alarms are correctly positioned and installed
· Each occupier must have a written statement of the terms on which they occupy the property, e.g. a tenancy agreement
Councils may also apply the following conditions:
· Restrictions or prohibitions on the use of parts of the HMO by occupants
· The landlord or manager must take steps to deal with any anti-social behaviour of occupants or visitors
· To ensure that the condition of the property, its contents, such as furniture and all facilities and amenities, e.g. bathroom and toilets are in good working order
· To carry out specified works or repairs within a particular time frame
· A requirement that the responsible person attends an approved training course
If the Council does not grant me a licence, can I appeal this decision?
The Residential Property Tribunal Service (RPTS) is an independent, government sponsored body, which provides a tribunal service for the leasehold and private renting housing market. The Housing Act 2004 has extended the powers of this body.
As a result of this extension powers the RPTS as the body, not the County Court, to which landlords make appeals concerning enforcement action and licensing decisions taken by the Council. For further details on appeals visit the RPTS website – WWW.RPTS.GOV.UK.