Elizabeth Fisher

Barrister

33 Bedford Row

 

Types of Licensing

Mandatory Licensing – The Focus

Additional Licensing

Selective Licensing

 

What is a HMO?

S.254 Housing Act 2004

If the Property meets either (s.254(1)):

The ”standard test” (s.254(2))

The “self-contained flat test” (s.254(3))

The “converted building test” (s.254(4))

A HMO declaration under s.255 is in force

It is a converted block of flats to which s.257 applies

 

What is a HMO?

The Standard Test- S.254(2)

One or more units of living accommodation, not consisting of a self-contained flat(s)

The living accommodation is occupied by people who do not form a single household

Their only or main residences, or treated as occupying it

The use of living accommodation is the only use of that accommodation

Rents are payable

Two or more of the households living there share one or more basic amenities or the living accommodation is lacking in one or more of the basic amenities

 

What is a HMO?

Self-Contained Test – s.254(3):

A part of a building meets the self-contained flat test if—

(a)it consists of a self-contained flat; and

(b)paragraphs (b) to (f) of subsection (2) apply (reading references to the living accommodation concerned as references to the flat).

Self contained – see s. 254(8)

 

 

What is a HMO?

The Converted Building Test – s.254(4)

Converted building;

Contains one or more units of living accommodation that do not consist of a self-contained flat or flats;

Living accommodation is occupied by persons who do not form a single household (see s.258) ;

Occupied by them as their only or main residences or may be treated as occupying it as so (s.259);

Living accommodation is the only use of the accommodation; and

Rents are payable.

 

What is a HMO?

Declarations:

If a Local Authority is satisfied that one of the above tests are met and that the occupation of the living accommodation (by more than one household) constitutes a “significant use” rather than a sole use of the Property, then they can issue a declaration that a house is in multiple occupation

 

s.257 Applies – Converted Blocks of Flats (CBF)

”Converted block of flats” = building or a part of a building which has been converted into and consists of self contained flats (257(1))

Applies to CBF if:

The building work undertaken in connection with the conversion did not comply with the appropriate building standards and still does not comply; AND

Less than 2/3s of the self-contained flats are owner-occupied

 

Does the Mandatory Licensing Scheme Apply?

The Licensing of Houses in Multiple Occupation (prescribed Description)(England) Order 2018

Occupied by five or more persons;

Is occupied by person living in two or more separate households; AND

Properties which meet the standard test, self-contained flat test or converted building test;

 

 

How to Apply for a Licence?

Apply to the Local Authority

Ss.63-68 HA2004 and the Licensing and Management of Houses in Multiple Occupations and Other Houses (Miscellaneous Provisions)(England) Regulations 2006

Likely to include a fee!

 

Consequences

Criminal Offence;

Fines - s.72(6) and (7);

Rent Repayment Orders;

Prohibition on serving s.21 Notices - s.75.;

Banning Orders

Being placed on the rogue landlord database.

 

Rent Repayment Orders (“RRO”)

A rent repayment order (RRO) requires repayment, of rent or housing benefit or housing costs element of universal credit paid in respect of a tenancy or licence, by a landlord/agent

Housing Benefit or Housing Costs Element of UC

12 months

 

Rent Repayment Orders (“RRO”)

Application is made to:

The First-tier Tribunal (Property Chamber) or

The Local Housing Authority.

Using the appropriate form (Form RRO1)

Pay the fee

 

Relevance

Over 130,000 unlicensed rental properties in London

There are considerable benefits for a tenant

Issuing proceedings is not precluded under the current Coronavirus Legislation – There is no need to wait!