News
Extension of mandatory licensing of HMOs
Thursday 15th December 2016
Following the consultation around this time last year concerning the future of HMO licensing, the industry eagerly awaited the government's response on what new measures would be implemented. In October 2016, the government launched a further consultation to look into the issues raised previously in more detail, and it appears those changes are set to go ahead in 2017.
If you're not familiar with the original consultation, you can take a look at our previous post which includes a link to the full discussion document.
HMO Licensing - Potential Changes
The government plans to increase the number of properties subject to mandatory licensing through secondary legislation using the following criteria:
Remove the storey rule so all houses with five or more people from two or more households are in scope - this will further enable local authorities to tackle poor standards, migration and the problems being seen in high risk smaller properties as the sector has grown;
Extend mandatory licensing to flats above and below business premises (regardless of storeys);
Set a minimum size of 6.52sq-m for one person and 10.23sq-m for two people, in line with existing overcrowding standard (Housing Act 1985) to close loophole created by upper-tier tribunal hearing.
The change is set to come into force in 2017 and they have agreed a grace period of six months for landlords to apply for a license.
Non-compliant HMO landlords will find themselves at risk of penalties, including criminal prosecutions and the new civil fines of up to £30,000.
The minimum size rule does not apply to temporary visitors, but children will be counted as full adults for this condition.
Additional measures include impact assessment, fit and proper test, refuse disposal facilities and purpose built student housing.
The full consultation document can be found here Houses in Multiple Occupation and residential property licensing reforms
However, not everyone is in support of these changes. ARLA have issued a statement voicing their concerns of the plans saying "Licensing doesn't work. Councils already have a wide variety of powers to prosecute for poor property conditions and bad management practices."
"Failure to tackle and inspect landlords without a license is a major concern of our members and only serves to enforce our current view that licensing is not an effective solution to the correctly identified problem."
The RLA have also objected to the government's plans outlining a number of serious concerns. David Smith, RLA Policy Director said "Councils are already struggling to enforce licensing schemes and the extension will potentially triple the number of homes under mandatory licensing."
"What is the point in introducing extra regulations if there are no resources to enforce them?"
The plans are subject to parliamentary approval and will potentially come into force April or October next year.