The Licensing of Houses in Multiple Occupation of the Housing Act 2004
Since 6th April certain types of Houses in Multiple Occupation (HMO) have been to be licensed by landlords with the local authority.
Failure to license is an offence that can attract severe financial penalty and in the case of most tenancies may prevent legal possession from being obtained.
Licenses are transferable between landlords or properties and will normally last for 5 years.
There are three categories of HMO licensing:
- Mandatory Licensing - this applies to any property that consists of 3 or more storeys and is occupied by 5 or more people who do not form a single household. Habitable basements/cellars and roof spaces plus mezzanine floors all have to be included when determining the number of storeys.
- Additional Licensing - this enables a local authority to expand the mandatory criteria to include other categories of the property, i.e. those of less than 3 storeys and/or fewer than 5 occupants.
- Selective Licensing - this enables a local authority to impose a licensing regime on all properties in a particular area.
- However, some local authorities have adopted Transitional Licensing Powers often using criteria based on previous HMO registration.
Landlords are advised to contact their local authority to determine:
- If their property requires to be licensed - this will depend on the regime adopted as outlined above
- The application process to follow
- The licensing fees to be charged by the local authority do vary.
The application process can be complex and Kings Lettings Ltd is able to assist landlords with this as an additional service. Please contact our branch for details. Alternatively you may wish to obtain legal advice.