What is in a licence?

The licence will specify the maximum number of people who may live in the HMO. It will also include the following conditions, which apply to every licence:

• A valid current gas safety certificate, which is renewed annually, must be provided.

• Proof that all electrical appliances and furniture are kept in a safe condition.

• Proof that all smoke alarms are correctly positioned and installed.

• Each occupier must have a written statement of the terms on which they occupy the property, for example, a tenancy agreement.

Councils may also apply the following conditions:

• Restrictions or prohibitions on the use of parts of the HMO by occupants.

• The landlord or manager must take reasonable steps to deal with any anti-social behaviour of occupants or visitors.

• To ensure that the condition of the property, its contents, such as furniture and all facilities and amenities, bathroom and toilets for example, are in good working order.

• To carry out specified works or repairs within a particular timeframe.

• A requirement that the responsible person attends an approved training course.

How long will it last?

A licence will normally last for a maximum of five years, although it can be for a shorter period.

How much will it cost?

Landlords will have to pay a fee to cover the administration costs of the licence procedure. This will vary depending on the amount of time and resources that are needed to satisfy all the licensing conditions.

Can the Council refuse to license my property?

Yes, if the property does not meet the conditions set out above and / or the landlord or manager is not a fit and proper person.

What will happen then?

If a landlord fails to bring a HMO up to the required standard, or fails to meet the fit and proper person criteria, the Council can issue an Interim Management Order (IMO), which allows it to step in and manage the property.

The owner keeps their rights as an owner

This order can last for a year until suitable permanent management arrangements can be made. If the IMO expires and there has been no improvement, then the council can issue a Final Management Order. This can last up to five years and can be renewed.

Can I appeal?

You may appeal if the Council decides to:

• Refuse a licence.
• Grant a licence with conditions.
• Revoke a licence.
• Vary a licence.
• Refuse to vary a licence.

You must appeal to the Residential Property Tribunal, normally within 28 days. Details of how to appeal will be available soon.

Temporary exemption from licensing

If the landlord or person in control of the property intends to stop operating as a HMO or reduce the numbers of occupants and can give clear evidence of this, then she or he can apply for a Temporary Exemption Notice. This lasts for a maximum of three months and ensures that a property in the process of being converted from a HMO does not need to be licensed. If the situation is not resolved, then a second Temporary Exemption Notice can be issued. When this runs out the property must be licensed, become subject to an Interim Management Order, or cease to be a HMO.

Are there any other penalties?

It is an offence if the landlord or person in control of the property:

• Fails to apply for a licence for a licensable property;
  or:
• Allows a property to be occupied by more people than are permitted under the licence.

A fine of up to £20,000 may be imposed. In addition, breaking any of the licence conditions can result in fines of up to £5,000.

Rent repayment orders

A tenant living in a property that should have been licensed, but was not, can apply to the Residential Property Tribunal to claim back any rent they have paid during the unlicensed period (up to a limit of 12 months). Councils can also reclaim any housing benefit that has been paid during the time the property was without a licence.

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