Additional HMO Licensing – Rent Repayment Order

Additional HMO Licensing: Your Local Council Rules Explained

Introduction: Navigating the Labyrinth of HMO Licensing

Are you a landlord feeling lost in the maze of HMO licensing rules? You’re not alone. It can feel like you’re constantly trying to stay on top of ever-changing regulations. And just when you think you’ve got a handle on the basics, along comes the topic of “Additional HMO Licensing”.

The Challenge of Additional HMO Licensing

HMO (House in Multiple Occupation) licensing is complex enough on its own, with rules that can feel overwhelming. But the introduction of “Additional HMO Licensing” adds another layer of complexity, often leaving landlords confused about whether they need this extra license and what it entails. Different councils interpret and apply the rules differently, leaving you with more questions than answers.

Purpose of this Guide

This article aims to cut through the confusion and provide you with clear, straightforward guidance on Additional HMO Licensing, with a particular focus on how local council rules apply. We’ll break down the key concepts, explain the application process, and help you understand your responsibilities to ensure your HMO is fully compliant.

Who Is This Guide For?

This guide is specifically designed for landlords, particularly those who already operate or are planning to operate a House in Multiple Occupation. If you’re trying to understand the licensing requirements for your property in your local area, you’re in the right place.

Core Understanding: What is an HMO and Why it Matters?

Before diving into the specifics of Additional HMO Licensing, it’s essential to have a firm grasp of the fundamentals. Let’s start with what an HMO actually is and why it’s regulated in the first place.

What is a House in Multiple Occupation (HMO)?

Simply put, a House in Multiple Occupation (HMO) is a property that’s rented out to three or more people who are not from the same family, and who share facilities like a kitchen or bathroom. Think of it as a shared house or flat where each tenant has their own room but uses communal areas. HMO’s can range from shared houses with working professionals to student accommodation and even shared flats. The key defining factor is that it houses multiple people from different households.

Mandatory HMO Licensing: The Basics

The idea behind HMO licensing is to ensure that these types of shared properties are safe and well-managed. Mandatory HMO licensing was introduced to set minimum standards for these homes, ensuring that landlords meet certain safety and management criteria. The intention of this is that landlords provide safe and suitable accommodation. The licensing process also gives local authorities oversight over the management of these types of properties.

Why are HMOs Regulated?

The regulation of HMOs is driven by several important reasons:

• Tenant Safety: Regulations aim to ensure that HMO properties are safe places for tenants to live, with appropriate fire safety measures, adequate space, and well-maintained facilities.
• Property Standards: HMO regulations often specify minimum standards for room sizes, bathroom and kitchen facilities, and other property features. This helps to prevent overcrowding and ensures a basic level of comfort for tenants.
• Community Management: Poorly managed HMOs can sometimes negatively affect communities, regulations can help ensure HMOs operate in a way that doesn’t disrupt the local area.

Understanding the purpose and context of the HMO Licensing system, and the idea of HMO Standards is crucial before we look at the finer details of Additional HMO licensing.

Diving into Additional HMO Licensing: What It Is and Why It Exists

Now that we’ve covered the basics of HMO licensing, let’s delve into the specifics of Additional HMO Licensing. This is where things can get a bit more complex, but we’ll break it down to make it clear.

What is Additional HMO Licensing?

Additional HMO Licensing is a scheme that allows local councils to introduce licensing requirements that go beyond the standard Mandatory HMO Licensing. This is not a universal requirement; it’s introduced by councils in areas where there’s evidence of specific problems with HMOs, such as anti-social behavior, poorly managed properties, or an over-concentration of HMOs. Additional HMO Licensing effectively means that more HMO properties in a given area need to be licensed, even if they don’t fall into the “mandatory” category.

Why Do Some Councils Introduce Additional HMO Licensing?

Councils introduce Additional HMO Licensing schemes for a variety of reasons. Often this will be to address concerns about the management and safety of HMOs within their borough. This also gives councils the opportunity to better manage the number of HMOs in certain areas. By introducing this Non-Mandatory HMO Licensing framework, councils can exercise greater control over HMOs and ensure that they are being managed to a higher standard. This can also help councils to make sure that HMO properties are not negatively impacting local communities.

How is Additional Licensing Different from Mandatory Licensing?

The most significant difference between Additional HMO Licensing and Mandatory HMO Licensing is that it extends licensing requirements to a broader range of properties. While Mandatory Licensing focuses on larger HMOs with a certain number of occupants, Additional Licensing can bring smaller HMOs into the licensing scheme, as well as properties in certain designated areas. This is how many councils bring into the legislation HMO’s with less than 5 occupants.

How Additional Licensing Impacts Landlords

If your property falls under an Additional HMO Licensing scheme, you’ll need to:

• Apply for a License: This means going through the application process and paying a fee to obtain the correct licence.
• Meet Additional Standards: Potentially adhere to stricter property standards and management requirements compared to those required under mandatory licensing. This may include things like minimum room sizes and fire safety requirements.
• Be Subject to Inspections: Your property might be inspected by the local council to ensure that you are meeting all of the required standards.

Ultimately, Additional HMO Licensing means more regulation and increased responsibilities for landlords of certain types of properties, requiring more vigilance and work from them.

The Crucial Role of Local Council Rules

Understanding the specifics of Additional HMO Licensing goes beyond the general principles we’ve discussed so far. A critical factor is that the rules and regulations vary significantly from one local council to another. What’s true in one area might not apply in another. Therefore, your local council’s rules are essential.

Local Variations in HMO Licensing

It’s vital to understand that there is no one-size-fits-all approach to HMO licensing, particularly with additional schemes. While the basic principles of HMO regulations are the same across the UK, the way they are interpreted and enforced can be quite different. One council might have stricter fire safety regulations, while another might focus more on overcrowding prevention, and some may require extended HMO licensing. This variance can be based on historical factors, population density, or the council’s political agenda.

Why Understanding Your Local Council’s Rules is Essential

Given these differences, understanding your own local council’s HMO Licensing rules is absolutely crucial for any landlord. Operating on assumptions, or what is true in other areas, could lead to non-compliance with your local area legislation and potential fines or penalties. This lack of understanding can also make your application process more difficult and can prolong the time it takes to get the licence. Failure to adhere to these local council HMO rules could result in enforcement action being taken against you, so understanding the rules early is vital.

Where to Find Your Local Council’s HMO Licensing Information

Finding your specific local authority’s HMO Licensing Information can feel overwhelming, but it is not as hard as it may seem. Here are some key places to start:

1. Official Council Website: Your first port of call should be the official website of your local council. Here you can navigate to the “Housing” or “Private Sector Housing” sections. Search terms like “HMO Licensing [Your Council Name]“, “Property Licensing [Your Council Name]“, or “Landlord Information [Your Council Name]” are usually a good place to start.
2. Landlord Portal: Some councils have set up dedicated online portals for landlords where you can access all of the documents and information you require. These portals are usually very useful for finding all documentation in one place. Check if this exists for your local council and register for it.
3. Contacting the Council Directly: If you cannot find the documents you require, or you would simply like to talk to an advisor, you can always contact the council directly. Usually, they will have a dedicated Private Sector Housing or Licensing team that you can contact for information and advice.

By using resources like these, you can usually find all of the local authority HMO regulations that apply to your area. Remember, each council will have slightly different rules, forms, and processes.

Key Property Standards and Requirements

Beyond the general licensing requirements, your local council will have specific property standards that your HMO needs to meet to comply with Additional HMO Licensing. These are put in place to ensure that tenants live in a safe and suitable environment. It’s worth noting that these standards will differ for every council, so make sure to check your own local council website.

Property Standards Specific to Additional HMO Licenses

Additional HMO Licensing often comes with increased property standards, compared to just a standard mandatory licence. This is to make sure the extra level of compliance is being met. These increased standards may be a mixture of stricter room size regulations, fire safety standards, and specific amenity requirements that your property must adhere to. Let’s break down some of the common standards:

Overview of Basic Requirements

Here are some of the most common areas of focus for councils:

• Room Sizes: There are usually minimum sizes for bedrooms in HMOs, designed to prevent overcrowding and ensure that rooms are large enough to be suitable for human habitation. Councils will sometimes define certain size limits for each occupant of a room and may also specify certain rooms as not suitable for bedrooms.
• Fire Safety: Fire safety regulations are crucial for HMOs. This will often include the number of fire doors needed, the type of fire alarms and fire extinguishers needed, as well as fire separation materials in the building.
• Amenities: Landlords must provide an adequate number of bathrooms and kitchen facilities, usually based on the number of tenants. Councils will specify how many of these facilities need to be provided, and may specify the standard of these facilities. This usually includes things like ovens, hobs, showers, toilets and washing machines.

Specifics on Fire Safety

As mentioned, fire safety is often one of the biggest challenges that many HMO landlords face and a key aspect that Local Authorities will assess when you apply for your licence. HMO Fire Safety Regulations are often more stringent than those that apply to regular homes. The exact requirements will vary for each area, but they may include:

• Fire Doors: All doors that provide a means of escape from fire will have to be fire doors. Each local council will have different requirements for the fire rating needed (e.g. FD30).
• Fire Alarms: The number and type of smoke and heat detectors required will vary for each council. Make sure to check your local authorities guidance on the matter.
• Emergency Lighting: Some councils may require emergency lighting on each escape route.
• Fire Separation: Most local authorities will require a specific level of fire separation between each habitable room, as well as between communal areas. This can often be done using fire-rated plasterboard and intumescent strips.
• Fire Extinguishers & Blankets: These are sometimes a requirement of your local council and may specify how many should be provided and where to place them.

It’s important to thoroughly research the HMO fire safety regulations of your local council to ensure compliance, as non-compliance can result in fines and a delayed application.

The Application Process: Navigating Your Local Council

Now that you understand the “what” and “why” of Additional HMO Licensing, it’s time to look at the “how”. Let’s walk through the typical HMO Licensing Process and what you need to know when applying.

Overview of the Application Steps

The application process will be slightly different for each Local Authority, but it generally involves a few similar steps:

1. Research and Preparation: First, you should gather all of the relevant documents, information, and carry out local council specific research to see what will be required for your area.
2. Application Form: Complete the official application form accurately and honestly. This will usually be done online via the council’s website. Ensure you have all of the required details to hand, as you will not be able to proceed without this.
3. Submission of Supporting Documents: Provide all supporting documentation as instructed. The correct information at this stage is vital to have a smooth application process.
4. Payment of Fees: Pay any required fees. The council will usually specify how much and how to make this payment.
5. Property Inspection: In some cases, the council may want to inspect your property to verify it meets the required standards. This may happen during or after the application process.
6. License Approval: If everything is correct and the council are satisfied, you will then be issued your HMO licence.

What Documents to Prepare

The exact documentation needed will vary between different local councils but expect to have to provide some or all of the following:

• Proof of Ownership: Proof that you own the property.
• Floor Plan of the Property: A scaled drawing of the property with room sizes and use highlighted. This must be accurate and may have to be done professionally.
• Electrical Safety Certificate (EICR): An up-to-date electrical certificate, usually no older than 5 years.
• Gas Safety Certificate (if applicable): A valid gas safety certificate by a registered Gas Safe engineer, usually no older than 12 months.
• Fire Alarm Certificate: If required by your local council.
• Emergency Lighting Certificate: If required by your local council.
• PAT Testing Certificate: If you have a lot of electrical equipment you may be required to submit a certificate for PAT testing.
• Fire Risk Assessment: In some cases, a full fire risk assessment from a qualified person may be necessary.
• Contact Details: The contact details for all relevant personnel for your HMO, including the Landlord and the Property Manager (if applicable)
• Proof of Insurance: Proof of valid landlord insurance cover for the property.
• Fee Payment: Payment of the Local Authority fee that is associated with the licence.

It is essential that you check your own local council’s specific requirements as other documents may be necessary.

Local Authority Fees and Timelines

HMO Licensing Fees vary widely between local councils. Some may be very inexpensive and some can be very expensive. Some councils also offer discounts for early applications or for renewals. It’s important to check what the fees are in your local area. Application timelines also vary. Some councils can process applications very quickly (in a matter of days), whereas others can take a lot longer (often in the range of 2-3 months). Again, check your own local council for how long it will take as this will allow you to properly plan.

VII. Consequences of Non-Compliance and How to Avoid Them

Understanding the rules and regulations around Additional HMO Licensing is essential, but so is being aware of the potential consequences of not following them. This section will explain what can happen if you don’t comply and outline how to ensure you are operating legally.

Penalties for Operating Without an Additional HMO License

Operating an HMO without the required license, whether mandatory or additional, can result in serious legal repercussions. Local authorities take non-compliance seriously and have the power to enforce regulations. The penalties can include:

• Substantial Fines: You could be hit with a significant fine, often in the thousands of pounds. These fines can accumulate over time if the breach continues.
• Prosecution: In some instances, landlords who are deliberately or repeatedly non-compliant can be taken to court for a criminal offence. This can result in further fines, and could carry a criminal record.
• Rent Repayment Orders (RROs): Tenants can apply for a Rent Repayment Order if a property was unlicensed. This can require you to repay up to 12 months of rent.
• Banning Orders: If you have repeatedly contravened the licensing rules, the local council can ban you from being a landlord, this will usually have a time limit but can be very damaging.
• Injunctions: If your conduct is persistent you can face an injunction from the local authority. This is a court order that could lead to further repercussions if the order is not followed.

The severity of the consequences will usually depend on the nature and extent of the breach.

How to Ensure Compliance with Additional HMO Licensing

The best way to avoid these issues is to take a proactive approach to ensuring compliance:

1. Know Your Local Council’s Rules: First, conduct thorough research into the licensing requirements in your specific area. Check your local council website and any relevant documentation they have available.
2. Apply for a License: Make sure you apply for your licence in a timely manner, and make sure to supply all of the correct information, this will reduce delays.
3. Meet All Property Standards: Before the council inspect your property, make sure you have met all of the property standards and requirements. This includes fire safety standards, as well as amenity and property standards.
4. Seek Advice: If you are confused by any aspect of the regulations, seek advice from a professional adviser. This can include things such as specialist solicitors or HMO consultants.
5. Regular Audits: Carry out regular internal audits of your compliance and property to make sure that you have not missed anything.

By following the correct guidance and taking proactive steps, you can avoid all of the issues and penalties associated with Unlicensed HMO’s.

VIII. Tips and Guidance for Landlords

Having navigated the complexities of Additional HMO Licensing, it’s beneficial to have some additional tips and guidance to help you manage your properties and ensure ongoing compliance. This section will offer some useful advice for you to consider.

Checklist for HMO Compliance

To help you manage your properties successfully and to comply with HMO regulations, consider this checklist:

• Research Your Local Council Rules: Begin by thoroughly researching the specific rules and regulations that apply to your local council, and understand the documentation they will need.
• Obtain a Valid License: Once you have the necessary research, then apply for the HMO Licence using the correct documentation and information.
• Meet the Required Property Standards: Before the property is inspected, make sure you have met the minimum requirements, including room size, fire safety standards, and amenities.
• Regularly Review Fire Safety Equipment: Make sure to check your fire safety equipment on a regular basis and keep a log of any inspections that take place.
• Maintain Records: Ensure that your records are up-to-date, and keep a record of any work carried out at the property. This includes gas safety certificates, electrical safety certificates, and any other safety related information.
• Communicate with Tenants: Communicate clearly and openly with your tenants, and ensure they know their roles in maintaining property standards and avoiding non-compliance issues.

Where to Seek Professional Support

Navigating all of the licensing requirements can be confusing, so don’t be afraid to seek professional support. Here are a few professionals who can help:

• Specialist Solicitors: Property solicitors with expertise in HMO regulations can offer advice on the legal aspects of licensing. This is especially important if you feel unsure or if there are specific complexities with your property or area.
• HMO Consultants: There are specialist consultants who can offer advice on HMO regulations. They can also help with submitting applications and managing your properties, to ensure continued compliance.
• Landlord Associations: Landlord associations can provide support, advice and resources on a range of relevant landlord topics including HMO Management.

Resources for Further Learning

Here are some other useful places to go for information:

• Local Council Websites: Look to the guidance on the local council websites, this will always be the most up to date and accurate guidance.
• Government Legislation: Check all relevant government legislation regarding the latest updates and law changes.
• HMO Forums: Connect with other landlords online, where you can ask questions and share insights and tips.

By taking advantage of all of these resources you will have a better idea of the standards required, and you will be better equipped to manage a compliant and successful HMO.

IX. Conclusion

Congratulations on reaching the end of this guide! Understanding the intricacies of Additional HMO Licensing can be a challenge, but taking the time to educate yourself is a crucial step toward running a successful and compliant property.

Summary of Key Points

Let’s recap the essential information you should take away:

• Additional HMO Licensing is Not Universal: It’s an extra layer of regulation implemented by some local councils in specific areas with a higher concentration of HMOs, or properties that have issues with their management.
• Local Council Rules are Paramount: The specific requirements and standards you need to follow will vary depending on your local council. Always check your local authority’s documentation.
• Compliance is Your Responsibility: You must adhere to all property standards, and you must make sure to apply for your licence and maintain your property according to the local requirements.
• Non-Compliance Has Consequences: There are serious penalties for operating an unlicensed HMO including fines, prosecutions and potential banning orders.

Take Action Now

It’s time to turn your knowledge into action! Here are some key steps you should take next:

• Visit Your Local Council Website: Begin by thoroughly researching your local council’s rules for HMO licensing.
• Assess Your Property: Evaluate if your property falls under the additional licensing requirements.
• Start Your Application: If necessary, start the application process promptly.
• Seek Professional Advice: If you’re unsure, don’t hesitate to seek expert help from solicitors or HMO consultants.

A Final Word of Reassurance

Understanding these regulations can be complex, but it’s not insurmountable. By staying informed, proactive, and diligent, you can ensure that your HMO is not only legally compliant but also a safe and positive environment for your tenants. Remember, being a responsible landlord is good for your investment and for your community.