HMO Licensing
Whilst there are many good landlords in the private sector, there are commonly cases of HMOs being poorly managed and in poor physical condition.
Licensing is aimed at raising management and amenity standards to ensure that HMOs are being kept to the required standards.
The requirements of the Housing Act 2004 regarding HMO licensing are dealt with by local housing authorities - the Council!
For several years Councils in England and Wales have dealt with landlord registration schemes. These are the precursors to licensing and were set up under previous legislation. There have been a variety of registration schemes with different requirements which only applied in areas where the Councils chose to introduce them.
In introducing licensing the Government is aiming to make it clear for responsible landlords to know whether their properties need to be licensed and to close loopholes for rogue landlords who don't want to properly manage or maintain their property.
In addition to registration schemes some councils run voluntary accreditation schemes for landlords. Local authorities have always had powers to require work to be carried out to make sure that HMO properties are adequate and safe.
Licence Types
The Housing Act 2004 introduced 3 different types of licensing:
- Mandatory HMO licensing
- Additional HMO licensing
- Selective licensing of all privately rented housing in specific areas (further criteria apply).
Local councils can choose to introduce additional licensing of other types of HMOs which are not subject to mandatory licensing. They have to consult local landlords before introducing additional licensing and they have to publicise it when it comes into force.
Selective licensing may be introduced in areas of low demand housing or areas with significant anti-social behaviour problems. Such problems, usually created by just a few landlords or tenants can have a massive impact in an area and slective licensing is intended to help improve such areas. All rented property within a selective licensing area has to be licenced, regardless of whether or not the property is an HMO. The local council has to consult local landlords before introducing selective licensing in an area and they have to publicise it when it is made.
On the additional pages listed on the left we have included more information on mandatory HMO licensing.