hmo license
📖 What is hmo license? Meaning and definition
A House in Multiple Occupation (HMO) licence is crucial for landlords in the UK who let out properties that fall under the definition of an HMO and are required to be licensed. If a landlord controls or manages an HMO that should be licensed but isn't, they are committing an offence under section 72(1) of the Housing Act 2004. This offence can lead to significant consequences for the landlord.
One major consequence for a landlord operating an unlicensed HMO is the possibility of a rent repayment order. Tenants who have paid rent for a property that should have been licensed but wasn't can apply to the First-tier Tribunal for such an order. The Tribunal can make a rent repayment order if it is satisfied, beyond reasonable doubt, that the landlord has committed the offence of controlling or managing an unlicensed HMO, even if the landlord has not been formally convicted.
The amount of a rent repayment order is determined by the First-tier Tribunal, specifically under sections 43 and 44 of the Housing and Planning Act 2016. The order will relate to rent paid by the tenant during a specific period when the offence was being committed. For example, tenants have successfully claimed repayment of rent paid over several months due to their landlord's failure to obtain a required HMO licence, particularly in areas designated for additional licensing by local authorities.
📋 Requirements
- The property must be a House in Multiple Occupation (HMO).
- The HMO must be required to be licensed under Part 2 of the Housing Act 2004.
- The landlord must be controlling or managing the unlicensed HMO.
- The property must be let to tenants during the period it was unlicensed.
📝 Procedure
- Tenants apply for a rent repayment order under sections 40-44 of the Housing and Planning Act 2016.
- The First-tier Tribunal considers the application.
- The Tribunal must be satisfied, beyond reasonable doubt, that the landlord committed the offence of controlling or managing an unlicensed HMO.
- If satisfied, the Tribunal determines the amount of rent repayment based on rent paid during the period the offence occurred.
💡 Examples
- A landlord in an additional licensing area of London failed to obtain an HMO licence for their property, leading tenants to successfully apply for a rent repayment order covering several months of rent.
- Tenants claimed repayment of rent for periods between October 2019 and March 2021 because their landlord was operating an HMO without the necessary licence.
- The First-tier Tribunal ordered a landlord to repay over £6,000 in rent after finding they managed an HMO that required a licence but did not have one.
📚 Legal basis
- Housing Act 2004
- Housing and Planning Act 2016
❓ Frequently asked questions
What is an HMO licence?
An HMO licence is a legal document required for certain types of Houses in Multiple Occupation (HMOs) under the Housing Act 2004, indicating that the property meets specific standards and is managed appropriately.
Why is an HMO licence important for landlords?
It is important because controlling or managing an HMO that requires a licence but does not have one is an offence under section 72(1) of the Housing Act 2004, which can lead to legal penalties and rent repayment orders.
Can a tenant get their rent back if their landlord doesn't have an HMO licence?
Yes, if a landlord is found to be operating an unlicensed HMO that should have been licensed, tenants can apply to the First-tier Tribunal for a rent repayment order under the Housing and Planning Act 2016.
What is a rent repayment order?
A rent repayment order is a legal instruction from the First-tier Tribunal requiring a landlord to repay rent to tenants if the landlord has committed certain offences, such as operating an unlicensed HMO.
How is the amount of a rent repayment order calculated?
The First-tier Tribunal determines the amount, which must relate to the rent paid by the tenant during the period when the landlord committed the offence of controlling an unlicensed HMO, as outlined in sections 43 and 44 of the Housing and Planning Act 2016.
Do all HMOs need a licence?
Not all HMOs require a licence, but many do, especially larger ones or those in areas designated for additional licensing by local authorities. It is an offence if an HMO that is required to be licensed is not.