fit and proper person
📖 What is fit and proper person? Meaning and definition
The 'fit and proper person' test is a legal standard used to assess whether an individual or company is suitable to manage properties or hold certain licences, such as those for Houses in Multiple Occupation (HMOs) or mobile home sites. This assessment considers past conduct and whether the person has demonstrated the capacity to fulfil their responsibilities, including financial obligations and adherence to regulations. If someone is found not to be a fit and proper person, it can lead to the refusal, modification, or revocation of a licence.
Local councils or tribunals conduct these assessments, often in response to concerns about a person's management history or compliance with legal requirements. For instance, a council might investigate a landlord's 'fit and proper person' status if issues arise with other properties they manage, potentially putting licence applications on hold during the investigation. The outcome of such an assessment can significantly impact a person's ability to operate in the property sector.
Appeals against 'fit and proper person' findings can be made to tribunals, which will review the original decision. The tribunal will consider the evidence presented, such as reasons for expulsion from a redress scheme or failure to make suitable funding arrangements for properties, to determine if the initial finding was correct. The process ensures that those managing properties meet a certain standard of conduct and competence to protect tenants and maintain housing standards.
📋 Requirements
- Ability to meet obligations as a manager or licence holder
- Absence of concerns regarding conduct or management history
- Compliance with legal and financial responsibilities
- Not having been expelled from relevant redress schemes
📝 Procedure
- Applicant applies for a licence (e.g., selective licence or HMO licence)
- Council raises internal concerns about the applicant's 'fit and proper person' status
- Applications are put on hold pending further investigation by the council
- Council makes a finding regarding the applicant's 'fit and proper person' status
- Applicant may appeal the finding to a First-tier Tribunal
💡 Examples
- A council might find a mobile home site manager is not a fit and proper person if they have a history of failing to maintain the site to required standards.
- A landlord's application for a selective licence could be delayed if the council has concerns about their management of other properties, pending an investigation into their 'fit and proper person' status.
- An HMO licence might be revoked if the licence holder is expelled from a property redress scheme, indicating they are no longer considered a fit and proper person to manage the property.
- A tribunal might review a decision that a person is not fit and proper, especially if the original finding was based on their failure to ensure rent obligations were met for properties they managed.
📚 Legal basis
- The Mobile Homes (Requirement for Manager of Site to be a Fit and Proper Person) (England) Regulations 2020
- Housing Act 2004
❓ Frequently asked questions
What does 'fit and proper person' mean for landlords?
For landlords, it means you are assessed on your suitability to hold a property licence, considering your past conduct, financial management, and ability to meet legal duties. If you don't meet this standard, you might not get or keep a licence.
Who decides if someone is a 'fit and proper person'?
Usually, the local council responsible for licensing properties makes this decision. If you disagree with their finding, you can appeal to a First-tier Tribunal, which will review the evidence.
Can I appeal a 'fit and proper person' decision?
Yes, you can appeal a finding that you are not a 'fit and proper person' to the First-tier Tribunal. The appeal must typically be made within a certain timeframe, and the original decision may be suspended during the appeal process.
What kind of issues can lead to someone not being considered 'fit and proper'?
Issues can include failing to make suitable financial arrangements for properties, being expelled from a property redress scheme, or having a history of non-compliance with property management regulations.
Does this apply to all types of rented properties?
The 'fit and proper person' test is specifically mentioned in relation to managing mobile home sites and obtaining selective or HMO licences for rented properties, as shown in the cases. It's a standard applied where specific licensing regimes are in place.
What happens if I'm found not to be a 'fit and proper person'?
If you are found not to be a 'fit and proper person', your licence application might be refused, an existing licence could be revoked, or conditions on your licence might be modified. This can prevent you from legally managing certain types of properties.