7. Additional HMO Licensing

Sections 56 and 57 of the Housing Act 2004 provide local authorities with the power to designate areas as being subject to (discretionary) additional licensing schemes, in relation to some or all of the houses in multiple occupation (HMO) in that area which are not already subject to mandatory HMO licensing.

In 2010, a general approval was issued by the Secretary of State for Communities and Local Government to enable local authorities to designate additional licensing schemes in their area without the government’s approval, provided there is a minimum 10-week consultation period. Once the designation is in force there must be a period of three months before it can come into operation.

When deciding on introducing an additional licensing scheme, the local authority must:

  • consider that a significant proportion of the HMOs, that will be subject to the proposed designation, in the area are being managed sufficiently ineffectively as to give rise, or likely to give rise, to one or more particular problems either for those occupying the HMOs or for members of the public
  • consider whether there are any other courses of action available to them that might provide an effective method of dealing with the problem or problems in question
  • consider that the making of the designation will significantly assist them to deal with the problem or problems
  • consult persons likely to be affected by the designation
  • consider any representations made in accordance with the consultation and not withdrawn
  • have regard to any information regarding the extent to which any codes of practice approved under section 233 have been complied with by persons managing HMOs in the areas in question

Any additional licensing scheme must form part of the authority’s housing strategy and seek to adopt a co-ordinated approach in connection with dealing with homelessness, empty properties, and anti-social behaviour affecting private rented property. This has to be combined with other courses of action available to the local authority and those measures available to other persons.