Rother District Council Agenda Item: 8.1
Report to - Cabinet
Date - 21 March 2011
Report of the - Director of Services
Subject - Update of fee structure for Licensing of Houses in Multiple Occupation
Recommendation: It be RESOLVED that the proposed update of the HMO licensing fee structure be considered and approved.
Head of Service: Anne Fennessy
Lead Cabinet Member: Councillor Mrs Hughes
Introduction and Background
1. The Houses in Multiple Occupation (HMO) mandatory licensing scheme commenced in April 2006. Mandatory licensing is aimed at HMOs with 3 or more storeys which are occupied by 5 or more people who constitute more than one household and share basic amenities (bathrooms/kitchens).
2. Since 2006 14 HMOs have been licensed. Licence periods are up to a maximum of 5 years and the renewal process will start from July 2011 onwards. This is a convenient time to update the existing fee structure (previously approved (CB/209) and confirm renewal fees.
HMO licensing fees
3. Licensing fees set by the Council must be justified, accountable and reflect the costs involved. A pan Sussex fee structure was developed in 2006 in order to provide a consistent regional fee structure (differences will occur due to variations in actual staff costs and on-costs).
4. The pan Sussex fee structure has been used to calculate the fees as shown in Appendix A, split between new applications and renewals. Renewal fees reflect the reduced activity involved in the renewal process. Costs are based on officer hourly rates averaged for the next 5 years and include all on costs. The fee structure includes an additional fee element for unlicensed licensable HMOs. This fee element is counter-balanced by the discounts available to licence holders who are members of recognised landlord organisations and/or achieved landlord accreditation status.
5. Predicted fee income based on existing licensable HMOs relicensing over the next 5 years is £6,750. In addition there may be initial licence application income from new licensable HMOs. (Two new HMO licence applications are currently being processed and will be subject to existing fees).
Legal Requirements
6. The Council has a legal duty to administer and run a mandatory HMO licensing scheme under Part 2 of the Housing Act 2004.
Anthony Leonard
Director of Services
Risk Assessment Statement
The appropriate national authority may request that a local inquiry be held if the mandatory HMO licensing functions are not carried out.
Appendix A
2011 HMO licensing fee Structure
Effective dates: 1st April 2011 – 1st April 2016
Initial Applications
Category I shared house:
Individual bedrooms, shared cooking/bath/shower/WC, and shared sitting/common room. Also applies to shared flat subject to licensing.
Current / Proposed5 person / £692 / £794
6 person / £702 / £806
7 person / £713 / £818
8 person / £723 / £831
9 person / £734 / £843
Category II bed-sit type:
Individual occupancy of rooms generally provided with exclusive cooking facilities, but some sharing of some or all of the baths/showers and WCs with other occupants. Applies to buildings containing self contained flats but not all facilities are behind the entrance door to the flat (even if facilities are for the exclusive use) – 3 units would be 3 flats.
Current / Proposed2 units / £776 / £892
3 units / £818 / £941
4 units / £859 / £990
5 units / £901 / £1,039
6 units / £943 / £1,087
Category III hostel type:
Dormitory type accommodation (no individual occupancy) with shared and/or catered cooking facilities, shared baths/showers/WCs/laundry facilities, common rooms.
Multiplier (x) / Current / Proposed5-10 occupants / none / £692 / £794
11-20 occupants / 150% / £901 / £1,039
21-40 occupants / 200% / £1,111 / £1,283
41-60 occupants / 250% / £1,321 / £1,528
61-80 occupants / 300% / £1,530 / £1,772
81+ occupants / 350% / £1,740 / £2,017
Renewal fees
Category I shared house.
Proposed5 person / £554
6 person / £564
7 person / £574
8 person / £584
9 person / £594
Category II bed-sit type.
Proposed2 units / £634
3 units / £674
4 units / £714
5 units / £754
6 units / £793
Category III hostel type.
Multiplier (x) / Proposed5 – 10 occupants / none / £554
11-20 occupants / 150% / £754
21-40 occupants / 200% / £953
41-60 occupants / 250% / £1,153
61-80 occupants / 300% / £1,352
81+ occupants / 350% / £1,552
Unlicensed licensable HMOs
When the Council discovers a property deemed to be a house in multiple occupation that is subject to the mandatory HMO licensing scheme but there has been no application submitted or intent to notify the Council - the fees in the structure will be at a premium of 30%.
The submission of an application and payment of the fee does not affect the Council’s decision to seek a prosecution for operating a licensable HMO without a licence.
Refunds
Licence fees are not refundable under any circumstances.
HMOs without planning permission
Subject to the agreed planning protocol, licences may be granted and a fee accepted for HMOs without the required planning permission. The application is subject to the full fee although the licence will only be granted for a maximum two years. If planning permission is granted (subject to compliance with other licensing matters) the licence period will be extended (no additional fee payable).
If planning permission is not granted the licence period will not be extended and the application fee will not be refunded.
Licenses granted for less than the maximum period
Licenses may be granted for periods less than five years in cases where e.g. works are required to bring up to prescribed standards. The full fee will be payable upon application. The licence may be discretionarily extended subject to compliance.
Formula for initial applications
The fee structure is based on three components with a multiplier for some HMOs:
· Development (W): working group agreed sum across Sussex
· Licence application process (L): based on time taken to issue application pack, check forms, receive fee, consult fire officer etc.
· Monitoring (M): based on time taken to check annual gas safety certificates, maintaining records etc.
Multiplier:
Category I shared house: A multiplier (x) is used per person over 5 persons = +2.5%.
Category II hostel type: A multiplier (x) per unit of accommodation = +10%.
Therefore, ‘W’ and ‘M’ remain constant the uplift is D+M+Lx (x = multiplier above).
Discounts
DiscountLicence holder (not applicant) member of recognised professional landlords association (NLA, RLA). / 5%
Licence holder (not applicant) member of recognised professional landlords association (NLA, RLA) + achieved recognised landlord accreditation status. / 10%
Licence holder (not applicant) achieved recognised landlord accreditation status (but not a member of a recognised professional landlords association). / 5%
(One discount applies per application)
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cb110321 – HMOs Fee Structure