City council rolls out pioneering HMO licensing scheme

Oxford City Council is to extend a pioneering licensing scheme to every house in multiple occupation (HMO) from the end of this month.

The local authority launched the first phase of its scheme in January 2011. It has now issued 933 licences for three or more storey properties, or two storey properties where five or more unrelated people are living and sharing facilities.

From this week, every landlord who owns a property with three or more unrelated tenants living and sharing facilities such as the kitchen and bathroom will have to obtain an HMO licence.

The scheme, which is thought to be the first of its kind in the country, will affect an estimated 5,000 properties.

Cllr Joe McManners, Oxford’s Board Member for Housing, said: "HMOs have long been recognised as being a particular problem in the city, with many examples of poor quality homes and in some cases being poorly managed. These damage the reputation of good landlords and we are determined to put this right, and stop those doing the right thing being undercut by cowboys.

"The private rented sector is hugely important to the residents of Oxford, not just in terms of providing much needed accommodation, but also with the impact that it can have on local communities and licensing every HMO will help drive up standards for everyone.”

A landlord who fails to obtain a licence could be prosecuted and face fines of up to £20,000. Oxford said it had already taken court action against those landlords and agents who had not complied with the initial stage of the scheme.

The council inspects every HMO prior to issuing the licence, and is able to impose conditions which the licence holder must comply with.

Landlords must pay an annual fee for the licence, with the funds used by the local authority to pay for the scheme. Reductions are offered to good landlords, including those who own multiple properties.

In September 2011, the London Borough of Newham announced plans to become the first council to introduce a licensing scheme for all private landlords in the borough.

Newham’s proposals, which affect an estimated 35,000 tenancies, are expected to be in place by July 2012.