Houses in Multiple Occupation HMOs

1
Houses in Multiple Occupation(HMOs)

2
Brief History Of HMOs

• An HMO was defined as a house which is occupied
  by persons who do not form a single household
  (see sect. 345 of the Housing Act 1985).
• The above was repealed by the Housing Act 2004.

3
Sheffield City Council v Barnes (1995)

• Following enforcement action taken by SCC to
  bring a student house up to the HMO Standard.
• it was argued that occupants formed a single
  group and the house was therefore not in multiple
  occupation.

4
What is a HMO?

• a building, or part of a building, such as a
  flat, that
• is occupied by more than one household and where
  more than
• one household shares or lacks an amenity,
  such as a
• bathroom, toilet or cooking facilities
• is occupied by more than one household and which
  is a
• converted building but not entirely
  self-contained flats (whether or not some
  amenities are shared or lacking)
• is converted self-contained flats, but does not
  meet as a
• minimum standard the requirements of the 1991
  Building
• Regulations, and at least one third of the flats
  are occupied under short tenancies

5
What is a Household?

• The definition of household is now strictly
  defined as persons who are all members of the
  same family.
• This means that groups of students can no longer
  be defined as living as one household and so
  shared student houses are HMOs and may require a
  licence.

6
Which HMOs will require a licence?

• Mandatory licensing will apply to HMOs
• of 3 or more storeys
• occupied by 5 or more persons
• (comprising at least 2 households)
• which share amenities i.e. are not self
• contained

7
The Purpose of Licensing

• To ensure that
• Landlords are fit and proper persons.
• Standards of management are adequate.
• Vulnerable tenants are protected.
• High risk HMOs are identified and targeted.
• Local Authorities have measures to
• encourage co-operation or step in to
• deal with uncooperative landlords.

8
Licences The Facts

• Each licence applies to one property and one
  person.
• A licence lasts a maximum of 5 years but can be
  for a shorter time.
• There are mandatory conditions which we have no
  choice but to include
• BUT
• We can put on discretionary conditions of our own.

9
Conditions

• Conditions must include
• Gas, electrical, furniture and fire safety and
  information to tenants such as tenancy
  agreements.
• Conditions may cover
• Management use and occupation
• Specific works

10
Issuing licences

• Tamworth BC must issue 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

11
Licensing Sanctions

• Operating an HMO without a licence which is
  required to be licensed is a criminal offence
  punishable with a fine of up to 20,000.
• Breaches of licence conditions are subject to a
  fine and/or revocation of licence.
• If a licence cannot be granted or is revoked the
  LHA must make an Interim Management Order.

12
Rent Repayment Orders

• Residential Property Tribunal can make a rent
  repayment order if a HMO that requires a licence
  is operating without such a licence
• Tamworth Borough Council can apply for a rent
  repayment order to reclaim any Housing Benefit
  paid
• Maximum penalty is up to 1 years rent

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HMO Management Regulations

• Rent
• Repair
• Cleansing
• Good working order or water, drainage and
  sanitation

Managers must ensure satisfactory conditions for

• Fire safety measures
• Ventilation
• Outbuildings and yards
• Management
• General safety

14
Prosecutions Warwick DC

• Cost to the Landlord
• 12,000 for failing to obtain a licence
• 6,000 for HMO Management Regulation Breaches
• 2,070.30 for costs
• Total 20,070.30

• The HMO was unlicensed and the landlord was found
  to be in breach of HMO management regulations.
• The HMO posed serious hazards to its occupants
  the council subsequently served its first
  Emergency Prohibition Order.

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Rent Repayment Order

• Warwick students claim back 18,540 of rent
• Students successfully claimed rent which they
  paid to their landlord, after he was convicted by
  the council for failing to licence his property
  as an HMO.

• Newham Council - Housing Benefit Repayment
  10,000
• The first LA to obtain an Rent Repayment Order
  to claw back housing benefit paid to a landlord
  who had been operating an unlicensed HMO.

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How to Apply for a Licence

• Telephone [phone]
• Or email
• privatehousing_at_tamworth.gov.uk