HMO Consultation– Background Information

HMO Licensing

In June 2000 a mandatory scheme was introduced for the licensing of HMOs (Houses in Multiple Occupation) under the Civic Government (Scotland) Act 1982. The licensing scheme was introduced in order to improve safety standards for this type of rented living accommodation and to ensure that landlords and their agents are fit and proper persons to hold a licence.

HMOs are now licensed under the Housing (Scotland) Act 2006. An HMO licence is required for living accommodation which is:-

  • Occupied by three or more persons from three or more families;
  • Occupied by them as their only or main residence; and
  • Either a house, premises or a group of premises owned by the same person with shared basic amenities.

The Council is currently looking at a range of issues connected to the regulation of HMOs, including developing better links between the licensing and planning regimes for HMOS and making more effective use of a range of new enforcement powers in order to target HMOs which are unlicensed or badly managed.

Licensing and Overprovision

In January 2012 new powers were introduced under the Private Rented Housing (Scotland) Act 2011 to allow the Council to refuse to grant an HMO licence where it considers that there is overprovision in an area. In considering whether there is overprovision, the Council must have regard to:-

  • whether there is an existing HMO licence in effect in respect of the living accommodation;
  • the views of the applicant and any person living in the accommodation;
  • the number and capacity of licensed HMOs in the locality; and
  • the need for housing accommodation in the locality and the extent to which HMOs are required to meet that need.

Unfortunately the legislation does not provide a definition of overprovision but it is clear that any assessment of overprovision must be linked with whether there is a need for this type of accommodation.

The purpose of this consultation is to help shape a licensing policy on overprovision by taking into account the views of all those with an interest in this type of shared accommodation, including local residents, landlords and letting agents.

Once developed, the policy will set out the Council’s general approach to overprovision when considering HMO licence applications. Depending upon the outcome of the consultation and evidence gathered as part of the review of HMO licensing, the policy might identify certain localities in the city where there would be a presumption against the grant of further HMOs licences, although each application received would still require to be considered on its own individual merits. Equally, the consultation might establish that there is a continued need for this type of accommodation which is unmet and that it would not be appropriate to identify any localities as being overprovided for in order to limit the number of future applications granted.

Current HMO Provision

Glasgow City Council currently has 2970 licensed HMOs. From the public register, it is clear that large numbers of HMOs are concentrated in specific areas of the city, with the Anderson/City ward accounting for 40% of the total number of licensed HMOs and the Hillhead ward for 24%. Traditionally these concentrations tend to be in areas where students seek accommodation while studying at the city’s colleges and universities. It is also clear that many areas of the city have very few licensed HMOs, with 8 ward areas each having less than 10 licensed HMOs. A table showing the number and percentage of licensed HMOs by ward area is attached.

It is recognised that HMOs play an important part in providing lower cost accommodation for a range of different groups of people, particularly at a time of significant welfare reform. It is therefore important that the policy developed by the Council strikes an appropriate balance between continuing to support the provision of well managed and well run HMOs but also ensures that overprovision in particular areas does not exist.