Frequently asked questions - HMOs

Frequently asked questions - Houses in Multiple Occupation

How does additional HMO licensing work?

Anyone who owns or manages an HMO in the city has to apply to the council for a licence.
The council must issue a licence if it is satisfied that the:

• HMO is reasonably suitable for occupation by the number of occupants/households allowed under the licence
• proposed licence holder is a ‘fit and proper person’ to hold a licence
• proposed licence holder is the most appropriate person to hold the licence
• proposed manager (if there is one) is a 'fit and proper person' to manage the property;
• proposed management arrangements are satisfactory
• person involved in the management of the HMO is competent 

 ‘What happens if I do not meet the fit and proper person’ criteria?

You must appoint a manager for your property who meets the fit and proper person criteria 

Will you contact me about licensing my property?

No. The person responsible for the property must apply to us for an HMO licence. This is usually the owner or manager.

I rent out rooms in my private house. Do I need an HMO licence?

A resident landlord or family can have up to two lodgers living in the house. If you have three or more lodgers, the house will require an HMO licence.

Do I need to licence all of my HMO properties?

Yes, if they are in a licensable area of the city.
You must hold a separate licence for each property that meets the licensing criteria.

Can I pay the HMO licence fee in instalments?

No. Licence fees must be paid in full with the licence application.

Are there any additional fees?

No the licence fees cover the costs of administering licensing.
You may incur additional fees and charges if the Council has to take any enforcement action.

Can I get a refund if I let my HMO to a family?

No. You can apply for the licence to be revoked if you no longer want to operate the property as an HMO. You will not receive a refund.

Do I need to tell others, like my mortgage provider, about my HMO application?

Licences are legally enforceable and may require changes to the house.
People with a legal interest in the property have a statutory right to know how the HMO licence may affect them. This includes mortgagees and other owners or managers.

What are the conditions applied to an HMO licence?

There are general conditions relating to the management of the property. Specific conditions may require you to limit the number of occupiers depending on the level of amenities and space standards. You can download the HMO standards from the website.

What happens if I do not apply for an HMO licence?

A person commits an offence under Section 72 of the Housing Act 2004 if he or she is a person having control of or managing an HMO which is required to be licensed under the additional or mandatory licensing schemes but which is not so licensed.

Where necessary, we will consider legal proceedings for a failure to licence a HMO in accordance with our enforcement policy. This could result in the service of a Civil Penalty Notice or prosecution. The maximum fine is currently £40,000 for a Civil Penalty and an unlimited fine on conviction.
You should be aware of the following:

• Rent repayment orders - A tenant living in a property that should have been licensed, but was not, can apply to the Residential Property Tribunal to claim back rent. They can claim back rent they have paid during the unlicensed period. This is up to a limit of 24 months.
  Councils can also reclaim any housing benefit that has been paid during the time the property was without a licence. This will only apply where the person having control of or managing the HMO (and therefore responsible for licensing the premises), is also the person having control of the dwelling concerned.
• Restrictions on termination of tenancies - Tenants living in a property that should have been licensed, but was not, cannot be evicted by serving Housing Act 1988 Notice. This applies until the HMO is licensed or a management order is in place.
  This only applies where the person having control of or managing the HMO (and therefore responsible for licensing the premises) is also the person having control of the dwelling concerned.

What happens if I don't comply with the conditions of the HMO licence?

A breach of any of the licence conditions or HMO management regulations is a criminal offence.
Failure to comply with a licence condition can result in the service of a Civil Penalty Notice or prosecution. The maximum fine is currently £40,000 for a Civil Penalty and an unlimited fine on conviction.

Are there any exemptions from HMO licensing?

Buildings controlled or managed by the following:

• A local housing authority
• A non-profit registered provider of social housing
• A registered social landlord (Part one Housing Act 1996)
• A Police and Crime Commissioner
• The Mayors office for policing and crime
• A fire and rescue authority
• A health service body (S9 National Health Service Act 2006)
• Co-operative society
• Educational Establishments
• Religious communities

I am going to sell my HMO. What should I do?

The licence holder is legally responsible for the HMO.

You must inform us when the property is sold.

Your licence will be revoked when the HMO has been sold.

The new owner must apply for a licence and pay a fee to continue operating the property as an HMO.
Licences are not transferable.

As an HMO landlord, how should I tackle antisocial behaviour?

Tackling anti-social behaviour is a priority for us. There may be specific licence conditions tailored to individual properties.

These conditions may involve a landlord:

• Reporting persistent anti-social behaviour by persons visiting or occupying the HMO to the police
• Ensuring security arrangements are in place to prevent unauthorised access
• External sensor lighting to discourage such behaviour
• Tenancy agreements must contain clauses relating to anti-social behaviour.
• Tenants that consistently cause problems are in breach of their tenancy. You can therefore take steps to take possession of your property.

Is the council using licensing fees to raise money?

We are not permitted to obtain financial gain from the fees paid through the licensing process.
The fee charged is used to cover the costs associated with administering the mandatory and additional HMO licensing schemes.