Houses in Multiple Occupation (HMOs) and Licensing

The Houses in Multiple Occupation and Private Sector Housing Enforcement Team combines the use of statutory legislation with other methods designed to encourage private landlords to comply with the law when dealing with houses in multiple occupation (HMO) and privately rented housing within Herefordshire.

What is an HMO?

The Housing Act 2004 introduces a new definition of Houses in Multiple Occupation (HMO). The new definition is very complex. Generally a house in multiple occupation will be a property occupied by more than one household and more than two people, and may include bedsits, shared houses, non self contained flats and some self contained flats.

Houses fully converted into self contained flats will generally not be HMOs provided that they were converted in accordance with the ‘appropriate’ Building Regulation standards. This will, as a minimum be the 1991 Building Regulations.

Certain buildings cannot be defined as HMOs and include buildings owned or managed by Local Authorities, Health Authorities, Housing Associations and Education Establishments as well as other specific exemptions.

What standards do I need to maintain in a HMO?

The Council has a proactive inspection programme of HMOs. If conditions in the properties inspected are not up to standard, the landlord or owner is required to improve them.

There are two new sets of management relations, the first applying to most HMOs are detailed in Statutory Instruments No. 372, 2006 and those for Section 257 HMOs (blocks of self-contained flats that fall within the HMO definition) are contained in Statutory Instrument 1903, 2007. These came into force on 6th April 2006 and 1st October 2007 respectively.

The management Regulations impose duties on both the managers and the tenants of a HMO. The duties imposed are to ensure the good order, repair and, as appropriate, cleanliness of the following:

Water Supply, Drainage and General Services
All means of water supply and drainage in the house must be maintained, repaired, kept clean and be protected against frost damage. Tanks and cisterns should be clean and covered. The manager must not unreasonably cause the supply of water, gas or electricity to be interrupted.

Parts and Installations in Common Use
The manager must also ensure that common areas such as staircases, passageways, corridors and entrances are kept reasonably free from obstruction. All handrails and banisters and any stair coverings should be kept repaired or replaced or be provided where necessary for the safety of the residents. Included are installations that serve any part of the house in common use:

• installations for the supply of gas and electricity, for lighting and for space heating or heating water;
• sanitary conveniences, baths, sinks, washbasins and installations for cooking or storing food;
• receptacles or other installations provided in connection with the delivery to the house of postal packets;
• other installations (if any) in a kitchen, bathroom, lavatory or washroom which are not subject to any of the foregoing provisions of these Regulations.

Living accommodation
The internal structure of any part of the house occupied by a resident as his living accommodation including the installations for supply of water, gas, electricity, and sanitation are in and remain in good repair.

Lighting, windows and ventilation
Includes all windows and other means of ventilation. The manager must ensure that installations for lighting serving any part of the house in common use are readily available to residents, including lighting for staircases and entrances to the house, which are used by residents whether or not they are in common use.

Means of escape from fire
All means of escape from fire in the house and all apparatus, systems and other fire precaution equipment must be maintained and kept free from obstruction. It is the responsibility of the manager to display in suitable positions in the house signs indicating all means of escape from fire in the house.

Outbuildings in common use
Includes all outbuildings, and outside areas which belong to the house and are in common use. They should be maintained in good clean condition, and any boundary walls, fences and railings should be kept in good repair so as not to constitute a danger to residents.

The manager should also ensure:

• That refuse and litter is not allowed to accumulate in the house, except when pending disposal, and he should provide and maintain suitable refuse and litter bins, except where they are provided by the local authority. They are also responsible for the disposal of any refuse if the local authority fails to do so.
• That reasonable precautions are taken to ensure the general safety of the residents of the house with regard to the structural conditions of the house and to prevent access to any areas that are unsafe, including window sills that are at or near floor level.
• That the name, address and telephone number of the managing agent or landlord of the house is displayed in the house.
• That the local housing authority is provided with particulars requested by written notice with regard to the following:
• The number of individuals and households accommodated within the house
• The numbers of individuals in each household; and
• The purpose for which each room in the house is used.

Duties of residents

It is the duty of all residents of the property to ensure that the agent can effectively carry out his duties. All residents must:

• allow the manager access, at all reasonable times, to any occupied room, that he may carry out his or her duties
• provide the manager on request with any relevant information
• comply with arrangements made by the agent in respect of fire precautions or litter storage and disposal
• take care not to hinder in any way the agent in the performance of his or her duties
• take reasonable care to avoid damaging anything which the agent is under obligation to keep in good repair
  

Do I need a HMO Licence?

The Housing Act 2004 brought licensing in for certain categories of HMO. If the above definition determines a property within Herefordshire to be a HMO, it may need a licence. There are two ways in which licensing may apply to a HMO:

HMOs that fall within a Mandatory Licensing Scheme

Herefordshire Council has a duty to operate Mandatory Licensing for HMOs comprising of three or more story's and occupied by five or more persons.

HMOs subject to Herefordshire's Additional Licensing Scheme

From 6th April 2006 an additional HMO licensing scheme applied to all HMOs in Herefordshire that are not subject to the Mandatory Licensing scheme and are not self-contained flats that comply with post 1991 Building Regulations (known as Section 257 HMOs). Although Herefordshire's Additional Licensing Scheme came to an end on 6th April 2009, the development of a replacement is underway and will be notified in the local press and on the Council website.

How do I get a HMO Licence?

You can download the forms from the resource box or contact the Private Sector Housing team on (01432) 260746 e-mail psh@herefordshire.gov.uk and we will send you a HMO Licence application pack.

Landlords will have to pay a fee to cover the administration costs of the licence procedure. The cost of licensing in Herefordshire is detailed in the fees sheet that can be downloaded from the resource box above.

Will there be any conditions on the licence?

Anyone who owns or manages a HMO that must be licensed has to apply to the Council for a licence. The Council must give a licence if it is satisfied that:

• the HMO is reasonably suitable for occupation by the number of people allowed under the licence
• the proposed licence holder is a fit and proper person
• the proposed licence holder is the most appropriate person to hold the licence
• the proposed manager, if there is one, is a "fit and proper person"
• the proposed management arrangements are satisfactory
• the person involved in the management of the HMO is competent
• the financial structures for the management are suitable

A HMO licence will only be valid for one property at a time and for a period of 5 years. If you have more that one property an additional licence will be required.

What happens if I don't licence my HMO?

In common with many other local authorities, applications have failed to reach our original estimates. Landlords should be aware that we are able to determine which houses are likely to require licensing from the information we already possess. Landlords who have failed to apply for a licence will be at risk of:

• Prosecutions with fines up to £20,000 (one landlord in Hereford recently had a £8,000 fine plus costs)
• Losing rent through possible rent repayment orders (One landlord was fined and had to pay half his rent money back to the tenants)
• Problems getting possession of properties due to the non-availability of Section 21 notices under the Housing Act 1988

Our preference is always to work with landlords and to offer help and encouragement whenever we can. We appreciate the efforts and interest of landlords who have already submitted their applications. We would encourage landlords who need licensing for their houses but have so far not applied, to do so now. If we have to search landlords out, the cost of a licence increases and the likelihood of prosecution will be that much greater, especially for landlords who do not declare their full portfolio of licensable properties.

What about Hazards in a HMO?

The Council can issue a licence without inspecting the property. However, we are also required to satisfy ourselves as soon as is reasonably practicable after an application for a licence is made that the HMO is free from any serious hazards under the Housing, Health and Safety Rating System (HHSRS). All HMOs have to be assessed to ensure there are no serious hazards within 5 years from the licence application. In effect this means that the Council will be carrying out at least one inspection at some point during the lifetime of the licence. Further information on the HHSRS under the Housing Act 2004 can be found at the Communities and Local Government website:http://www.communities.gov.uk/housing/rentingandletting/housinghealth/