Mandatory HMO licensing
HMO's in the private sector housing market are seen as valuable accommodation but it is recognised that some landlords lack the skills and knowledge to professionally manage these properties. Licensing is seen by the government as a way to improve those HMO's by ensuring that landlords are fit and proper persons and that the standards of property management are adequate.
On 6 April 2006 Mandatory licensing of Houses in Multiple Occupation came into force nationally.
Licensing applies to properties that meet certain definitions of a HMO and criteria as laid down in the Housing Act 2004.
Is my HMO licensable?
For HMO mandatory licensing two tests need to be applied. The first is to establish whether the premises meets one of the standard tests for HMO:
- an entire house or flat which is let to three or more tenants who form two or more households and who share a kitchen, bathroom or toilet
- a house which has been converted entirely into bedsits or other non-self-contained accommodation and which is let to three or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities
- a converted house which contains one or more flats which are not wholly self contained (ie the flat does not contain within it a kitchen, bathroom and toilet) and which is occupied by three or more tenants who form two or more households
Once it has been established that the premises falls within one of the above definitions, the following test must be applied:
- the property has three or more floors (this includes basements and attics that are used as residential accommodation)
- five or more persons live at the property (including children)
- there are two or more households (a household is defined as a group of persons that are related)
- there is some sharing of amenities (eg people from more than one household are sharing a kitchen, bathroom or toilet)
Who needs to apply for the licence?
Anybody who owns or manages a HMO that meets the criteria for mandatory licensing needs to apply for the HMO licence.
The application form will refer to the applicant, proposed licence holder and manager of the property.
- Applicant – A Landlord may arrange for somebody other than the proposed licence holder or manager to complete the application form on his or her behalf.
- Proposed licence holder – The landlord of the property can hold the licence or nominate someone else such as a manager or agent (with their agreement) to be the licence holder. Whoever holds the licence must be the person most appropriate to hold the licence for the property. This is likely to be the person who receives the rent for the property.
- Manager – The landlord may not be involved in the day-to-day management of the property. In such circumstances the person appointed by the landlord to manage the property will be the manager.
What are the criteria for a licence to be granted?
In order for a licence to be issued we will need to be satisfied of the following:
- that the proposed licence holder and any manager of the property is "fit and proper"
- that the proposed licence holder is the most appropriate person to hold the licence
- that proper management standards are being applied at the property, including
- o Fire safety
o Gas and electrical safety
o Maintenance of common parts fixtures
o Maintenance of living accommodation
o Furniture safety
- that the HMO is reasonably suitable, or can be made suitable, for occupation by the number of tenants allowed under the licence with at least the minimum prescribed standards of amenities and facilities - these include the number, type and quality of shared bathrooms, toilets and cooking facilities
How long will the licence last?
The licence will last for a maximum of five years, although in certain circumstances the licence may be issued for a shorter period.
What information will the licence contain?
The licence will contain the following information:
- the address of the licensed property
- the name and address of the licence holder
- the name and address of the person having responsibility for the management of the licensed property
- specify the maximum number of occupants who may occupy the HMO
- the period for which the licence is granted
- conditions of the licence
What happens if I fail to license a HMO?
Failure to apply for a licence is a criminal offence and can result in a fine of up to £20,000.
In certain cases, rent from housing benefit or paid by tenants themselves can be reclaimed if a landlord is found to be operating a licensable HMO without a licence.
Interim and Final Management Orders
If we are not satisfied that we can grant a licence we may refuse to grant the licence and make an Interim Management Order (IMO). On expiry of the Interim Management Order, if we are still not satisfied we can issue a licence, we can issue a Final Management Order (FMO).
Go to more detailed information about Interim and Final Management Orders
Properties exempt from HMO Licensing
Certain types of property are not classed as HMOs and as such, are not subject to licensing. These include:
- two person flat share; a property, or part of a property, lived in by no more than two households each of which consist of just one person
- a property where the landlord and his household is resident with up to two tenants
- buildings managed or owned by a public body (such as the police or the NHS) or a Local Housing Authority or a Registered Social Landlord
- where the residential accommodation is ancillary to the principal use of the building e.g. religious establishments, conference centres etc.
- student halls of residence, where the education establishment has signed up to an Approved Code of Practice
- buildings regulated otherwise than under the Act, such as care homes, bail hostels etc.
- buildings entirely occupied by freeholders or long leaseholders
How do I apply for a HMO licence?
The HMO licence application pack
We have produced an application pack with all the relevant forms and guidance you will need to apply for a HMO licence. Also included are checklists for you to fill in to make sure you don't forget anything.
You can download the pack from this web page or alternatively, you can request a pack from Bury Licensing Services, Town Hall, Knowsley Street, Bury, BL9 0SW, phone: 0161 253 5208. All completed forms should be returned to this address.
Guidance
A guide to mandatory HMO Licensing in Bury (34 pages, 477kb, pdf)
Is your property an HMO? (2 pages, 80kb, pdf)
Does my property need a HMO licence? (3 pages, 29kb, pdf)
Application forms
HMO licensing application form (40 pages, 138kb, pdf)
HMO licensing conditions (16 pages, 56kb, pdf)
Landlord licence notification form (3 pages, 20kb, pdf)
Equality Monitoring Form (2 pages, 20kb, pdf)
HMO application form checklist (1 page, 17kb, pdf)
More information
Go to the Office of Public Sector Information's website to read the Housing Act 2004 (section on housing conditions)
To read government publications on Houses in Multiple Occupation go to the Communities and Local Government website
How to contact us
Regeneration and Housing Standards Team
Strategic Housing Unit, Textile Hall, Manchester Road, Bury, BL9 0DG
Phone: 0161 253 5353
Fax: 0161 253 5391
E-mail: customercontactteam@bury.gov.uk
On-line: report a problem
