From 6th July, landlords failing to licence their houses in multiple occupation (HMOs) can be prosecuted by councils and face fines of up to £20,000.
The new power strengthens the Government's reforming drive to further protect tenants and raise both health and safety and management levels in the private rented sector.
The new measures mean that from tomorrow, if an HMO is occupied without a licence, a local housing authority has the power to seek an order for the repayment of up to 12 months' housing benefit paid out while the property was let without a licence. Tenants can also seek an order for recovery of rent they have paid while a licensable property was let to them without being licensed.
Housing Minister Baroness Andrews said the new measures strengthened the important reforms introduced by the Housing Act 2004: "We have given landlords three months to apply for an HMO licence without fear of penalty for not having done so. These new powers will strengthen the licensing provisions and offer further protection for tenants. They also mean decent landlords will see an end to unfair competition from those avoiding their responsibilities."
A house in multiple occupation is a property where 3 or more tenants who are not all members of the same household are sharing some or all of the living accommodation and/or amenities. Since 6 April 2006 any HMO which is on 3 or more storeys with 5 or more tenants in 2 or more households is required to be licensed. Councils also have the discretion to designate areas within their district for additional licensing, requiring other HMOs to be licensed.
