[Bluey]

Here is the best info I can find about new legislation concerning Houses of Multiple Occupancy. It will definately affect your Landlord (and therefore indirectly their tenants) if there are 5+ tenants AND the property is 3+ storeys as these are subject to mandatory licensing.

It may affect your LL and yourself at smaller properties because local authorities have the right to introduce discretionary (selective) licensing.

Take up any queries directly with your local authority - check their website - as they are responsible for implementing the HMO schemes.

The impact on tenants will be caused by landlords who decide to sell their properties because they do not want to or cannot afford to implement changes to bring them up to the required standard, plus those who cannot gain the licence and are not permitted to rent out the property going forward.The local authority will also require LLs to take action against anti-social tenants (i.e. noisy tenants) so they will have to take more control over these violations and may have stricter tenant screening to prevent this.

The benefit of this legislation is that it offers tenants more protection against poor standard accommodation. The negative effect is that it has the potential in the future to increase the price of rent. This is because it might reduce rental stock of large numbers of LL decide to sell up and they will probably seek to offset the cost of complying with the legislation by passing on the costs to tenants through increases in rent.

The key points about licensing are:

There will be a change to the house in multiple occupation (HMO) definition so that where more than two unrelated tenants are sharing a property it will now be classed as an HMO.

There will be a mandatory licensing system for all HMOs with three or more storeys AND which have five or more occupants. All such properties will have to have a license.

In addition, local authorities (LAs) can extend licensing to include other HMOs if they think there is a need - say, if a local problem with anti-social behaviour exists or they think the standard of housing justifies it.

In some areas, LAs will be able to license ALL private landlords to ensure basic standards of management are being met.

The penalties are heavy. For non-registration there are fines of up to £20,000 for Landlords plus having to repay rent received whilst unregistered..

Both HMOs and selective licensing will follow similar procedures.

A license will be given for each property providing the license holder is a “fit and proper” person and the “management standards” are acceptable.

To decide if someone is fit and proper, the LA will look at whether a person has ever committed a fraud offence or been in any serious contravention of housing law.

For HMOs, a property will have to be suitable for the number of people living there - which in turn depends on amenities like loos and bathrooms.

The license will state the maximum number of occupants.

Both HMO and selective licenses will last five years though they can be revoked if the LA believes the property or license holder is no longer suitable, or in the case of selective licenses, the problem that led to selective licenses being imposed has now gone away.

Before it sets up an extended licensing scheme, LAs must consult with interested parties (these don’t include tenants!) and apply to the government too (though LAs rated by the Audit Commission as “good” or excellent won’t have to ask the government.)

Licenses will require there to be an annual gas safety certificate, working smoke alarms and safe electrical appliances and furnishings. Conditions may be attached to licenses too.

For example, if an HMO property doesn’t have say, enough bathrooms, rather than just not issuing a license, the LA may insist the landlord installs one by a certain date. Failure to do so could result in the loss of license and a fine up to £5,000.

Licensing will also require landlords to take steps to stop or reduce anti-social behaviour at the property.

This won’t make the landlord responsible for tenants’ behaviour; it just means he cannot ignore complaints from neighbours and will be expected to take some action, though this will be limited to formally warning tenants about their behaviour or reporting them to someone at the LA who can then take further action.

LAs won’t be able to use license conditions, to deal with health and safety hazards.

So, whilst it’s possible an LA may assess an HMO license application at the same time as doing a health and safety inspection, the HMO application would depend only on the person applying being a fit and proper person, the management of the building being acceptable and the property being suitable for the number of occupants.

If an LA cannot issue a license it must step in to manage the property itself.

Landlords will have the right of appeal to special Residential Property Tribunals on any aspect of a licensing decision.

Live in landlords should note that if the landlord is permanently resident but there are only 2 lodgers, it will NOT count as an HMO.

[Pennant The Tenant]

Cant see these rules working to be fair as tenants have to much to hide to open there mouths. It maybe that there subletting the livingroom.

[Bluey]

Yes, I can see that in some circumstances, the tenants and Landlord's interests will be identical and they will unite against interference by the Local Authority. That assumes that both the tenants and LL are both happy with each other and the current standard of the accommodation.

But if the property they live in falls within the HMO licensing scheme (because it's selective and up to the local authority which types of property it applies to, apart from 3 storey buildings with 5+ tenants where it's mandatory) then I guess the UK will witness hundreds of cases where unhappy tenants submit requests for the LA to inspect substandard accommodation to punish the LL.

However, I reckon most LA won't be arsed to bring it into affect for properties where it's not mandatory so maybe it's only relevant to a tiny proportion of properties and most of these will pass inspection anyhow.

[Pennant The Tenant]