DCLG proposes extending mandatory HMO licensing to smaller shared properties

The paper, Extending mandatory licensing of Houses in Multiple Occupation (HMOs) and related reforms: a technical discussion document, proposes:

• making the existing rules apply to more shared homes, including those that are one to two storeys (current rules apply to homes of three storeys). The Government’s current view is that five people (in two households) should be appropriate number of persons for the threshold to apply for smaller HMOs. “This will ensure that smaller sized but high risk HMOs are brought within the regime;
• ensuring rules apply to poorly converted blocks of flats and flats above and below shops, which are often exempt;
• setting a minimum size of rooms in line with existing overcrowding standards.

The Department for Communities & Local Government said it is also reviewing the information requirements when applying for a licence “in order to simplify and speed up the process”.

The DCLG claimed that the measures, which will only apply to England, would make it easier for local authorities to raise standards in houses used as shared homes.

The measures in the paper will only apply to England. The closing date for comments is 18 December 2015.

Housing Minister Brandon Lewis said: “It is simply unacceptable that people are living in cramped, unsafe accommodation provided by landlords who are more interested in a quick profit than the safety or welfare of their tenants.

“The actions of these rogue landlords are helping fuel illegal working, benefit fraud, and illegal immigration by creating a shadow housing market that carries dangers to people’s health as well as communities.

“The government is determined to crack down on rogue landlords and these measures, alongside those in the Housing Bill, will further strengthen councils’ powers to tackle poor-quality privately rented homes in their area.”

The DCLG also highlighted measures in the Housing Bill which it said would enable local authorities to take strong action against rogue landlords and letting agents.

These include:

• creating a database of rogue landlords and letting agents, “helping councils to focus their enforcement action on where it is most needed, and keeping track of those who have been convicted of housing offences”;
• seeking banning orders for the most prolific and serious offenders;
• issuing civil penalty notices of up to £5,000 for certain breaches of housing legislation, “ring-fencing resources for housing compliance activity”;
• extending rent repayment orders to cover situations where a tenant has been illegally evicted or the landlord has failed to rectify a serious health and safety hazard in the property, and allowing local authorities to retain that money for housing purposes where the rent was paid through Housing Benefit or Universal Credit;
• applying a more stringent ‘fit and proper’ person test for landlords letting out licensed properties, such as houses in multiple occupation, “to help ensure that they have the appropriate skills to manage such properties and do not pose a risk to the health and safety of their tenants”.

The Housing Bill and details of its progress through Parliament can be viewed here.