hmo licensing requirements
📖 What is hmo licensing requirements? Meaning and definition
HMO licensing requirements are rules set by local housing authorities in the UK that mandate certain types of shared properties, known as Houses in Multiple Occupation (HMOs), must be licensed. This licensing ensures that the property meets specific safety and management standards. Landlords who operate an HMO without the required licence are committing an offence under the Housing Act 2004.
Local housing authorities have the power to impose financial penalties on landlords who fail to obtain an HMO licence. These penalties can be substantial, with a maximum of £30,000, and are an alternative to prosecution for certain offences under the Housing and Planning Act 2016. The authority decides whether to prosecute or issue a civil penalty on a case-by-case basis, following its own policy.
If a landlord is found to be operating an unlicensed HMO, they may face a financial penalty, which they have the right to appeal to a Tribunal. Additionally, tenants in an unlicensed HMO may be able to claim back rent paid during the period the property was unlicensed, as seen in cases where landlords were ordered to repay rent for failing to license their property.
📋 Requirements
- The property must be a House in Multiple Occupation (HMO)
- The landlord must apply for and obtain an HMO licence from the local housing authority
- Compliance with local housing authority policies regarding HMO licensing
- The property must meet specific standards as determined by the local authority
📝 Procedure
- Local housing authority investigates a property, often after a report or inspection
- Officer forms the view that the property requires an HMO licence
- Council writes to the landlord regarding the offence of failing to obtain a licence
- Council issues a Notice of Intent to impose a financial penalty
- Landlord has the right to appeal the financial penalty to the Tribunal
💡 Examples
- A landlord was fined £642 for operating a property as an HMO without a licence between August and November 2018.
- An Environmental Health Officer visited a property to investigate cracks and determined it should have an HMO licence, leading to a penalty for the landlord.
- A landlord was ordered to repay rent to tenants because they failed to obtain the necessary HMO licence for their property.
- The Council sent a Notice of Intent to a landlord for failing to licence an HMO, stating an offence had been committed under the Housing Act 2004.
📚 Legal basis
- Housing Act 2004
- Housing and Planning Act 2016
❓ Frequently asked questions
What happens if a landlord doesn't get an HMO licence when required?
If a landlord fails to obtain a required HMO licence, they commit an offence and can face a financial penalty of up to £30,000, or even prosecution, as determined by the local housing authority.
Can a landlord appeal a financial penalty for an unlicensed HMO?
Yes, landlords have the right to appeal a financial penalty imposed by the local housing authority for operating an unlicensed HMO to the Tribunal.
What is the maximum penalty for not having an HMO licence?
The maximum financial penalty for operating an unlicensed HMO is £30,000, which local housing authorities can impose as an alternative to prosecution.
Who decides the amount of the financial penalty for an unlicensed HMO?
The local housing authority determines the amount of the financial penalty in each case, based on their own policy, and this decision is subject to appeal.
Can tenants get their rent back if they live in an unlicensed HMO?
Yes, in some cases, if a property should have been licensed as an HMO but wasn't, the landlord may be ordered to repay rent to the tenants for the period it was unlicensed.