The Royal Institution of Chartered Surveyors has issued this reminder that mandatory licensing for Houses in Multiple Occupation (HMOs) will come into force on the 6 April 2006.
Many HMOs are home to young and vulnerable people and are often where the very worst housing standards are found. Licensing will tackle low standards of fire safety, overcrowding, inadequate facilities and poor or unscrupulous management.
HMO landlords have until 7 July 2006 to apply for a licence which will demonstrate that their properties meet minimum standards in terms of the number of bathrooms, toilets, washbasins, showers, cooking and laundry facilities and are also managed by someone who is competent and fit to manage them.
Any landlord found to be operating a HMO without applying for a licence will be liable for of a criminal offence (with the potential of a £20,000 fine), subject to a rent replacement order and unable to evict a tenant under section 21.
Each HMO property will require a separate licence which will be valid for 5 years. Licenses are not transferable to another person or property should the landlord take the decision to sell.
Concerns have been raised by some landlords over the cost not only of the potential improvements that may be required but also the licence fee which local authorities set. Subsequently some tenants are fearful that the economic burden will be passed on in rent increases. Government has advised local authorities to realistically price the licence fees in order to avoid this situation and have stated that revenue raised by licensing cannot be used to fund other projects.
In Scotland, where licensing was introduced in 2003, concerns about the downward spiral in available rented properties that were predicted did not materialise.
Further information on HMOs and the new licensing regime can be found on the ODPM website: http://www.odpm.gov.uk/index.asp?id=1151996
