6. Legislative framework
Mandatory licensing of HMOs came into force in England and Wales in 2006 at the same time as the rest of the Housing Act 2004 and originally applied to properties of three storeys or more with five or more people making up two or more separate households living in them. Landlords of these properties are required to apply to the council for a licence, pay a locally set fee to cover the cost of administering the regime, and the property must meet minimum standards which include, room sizes, provision of amenities, for example bathrooms and kitchens, gas, electrical and fire safety installations, and the landlord must be a “fit and proper” person to hold the licence.
On 1 October 2018 the government introduced “The Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018” which removed the storey requirement as part of the definition for those properties required to be licensed under the mandatory scheme. This was partly due to a rise in house prices which resulted in more people being unable to afford their own home. Because of this, there had been an increase in the private rented sector over the previous decade which in turn saw an expansion of the HMO market. Some HMOs are occupied by the most vulnerable people in our society. The government was concerned that people were living in properties that were not built for multiple occupation, and the risk of overcrowding and fire was greater than with other types of accommodation. As demand for HMOs increased in the decade since mandatory licensing was first introduced, there was a significant increase in properties with fewer than three storeys being used as HMO accommodation, notably two storey houses originally designed for families and flats. Some properties being rented were sub-standard, overcrowded and potentially dangerous. The growth of HMOs also had an impact on the local community, including inadequate rubbish storage leading to pest infestations and other health and safety problems.
Part 2 of the Housing Act 2004 gives local authorities the power to introduce additional licensing schemes for HMOs or selective licensing schemes for the entire private rented sector to assist with additional controls to tackle specific issues that may be prevalent in certain wards or the entire district.