Apply for a mandatory HMO licence (5 or more persons)

Mandatory HMO licence conditions required by virtue of Schedule 4 of The Housing Act 2004.

These apply to houses and flats which are HMOs, and where applicable common parts of buildings that are HMOs or section 257 HMOs:

Maintenance of installations and appliances

The licence holder must take steps to ensure that the property, fittings and furniture (provided by him), including fire precautions, gas and electrical installations and appliances (provided by him), are maintained throughout the period of the licence to a satisfactory standard as per sections 65(3) and 65(4) of the Housing Act 2004.

Gas safety

The licence holder shall be responsible for ensuring that all gas installations and appliances comply with the Gas Safety (Installation and Use) Regulations 1998.

The licence holder must provide the council with a copy of the current and valid Gas Safety Certificate (i.e. less than 12 months old) to cover the full gas installation to the property and on demand by the council provide any further annual certificates throughout the duration of the licence. The inspection should be carried out annually by a Gas Safe^© registered engineer, and the certificate should be retained for at least two years following its issue. Any necessary remedial works identified shall be undertaken within a time period specified by the council.

The safety of the gas installation and appliances must be constantly maintained.

The licence holder must send the current gas safety certificate to the local authority every year on the anniversary of the issue of the licence.

Electrical safety

The licence holder must ensure all electrical installations and electrical appliances (provided by him) are kept in a safe condition. A declaration as to the safe condition of the appliances must be supplied to the local authority on demand.

The licence holder shall provide the council with a EICR Inspection Certificate completed by a competent electrical engineer in accordance with ‘Guidance note 3 for inspection reports’ produced by the Institute of Electrical Engineers. The council will accept certificates obtained in the last five years.

The licence holder shall ensure arrangements are made for electrical installations to be inspected every five years and on demand from the council provide a copy of this report. Any necessary remedial works including all Code 1, Code 2 and FI items identified shall be undertaken within a time period specified by the council.

The licence holder shall ensure arrangements are made for Portable Electrical Appliance Tests (PAT) to be carried out on each provided appliance every 12 months or more frequently if determined by the risk assessment or considered necessary upon visual inspection. The licence holder shall keep a written record of checks and faults and the PAT certificates and on demand by the council a copy of these test reports/results shall be supplied.

Any necessary remedial works identified in regard to PAT- testing shall be undertaken within a time period specified by the council. On demand, by the council, the Licence Holder shall provide a declaration as to the safety of such electrical appliances.

Furniture and furnishings

All soft furnishings supplied to tenants must comply with the Furniture and Furnishings (Fire) Regulations 1988 (as amended) and be maintained in a safe condition. On demand, by the council, the licence holder shall provide a declaration as to the safety of the furniture

Fire alarm system

The licence holder must ensure that smoke and heat detectors are installed in the property. A declaration as to the positioning of such detectors and associated alarm system must be supplied to the local authority on demand.

The licence holder shall provide the council with a commissioning or inspection certificate provided by a competent electrician in accordance with British Standard 5839 Part 6. The council will accept a certificate obtained in the last 12 months. Further certificates to be provided if alterations or additions are made to the system.

For most HMOs the fire alarm system will comprise of a Grade A or Grade D – LD1, LD2 or LD3 system, depending upon the property size, layout and mode of occupancy. The appropriate system requirements can be found in the “LACoRS Housing – Fire Safety. Guidance on fire safety provisions for certain types of existing housing” (or the LGG Guidance “Fire Safety in purpose-built blocks of flats” in certain circumstances where the property is a HMO in a purpose built building). Grade F systems (stand-alone battery-operated alarms) are not compliant with the legislation.

All fire alarms, smoke and heat detectors and emergency lighting should be maintained and serviced in accordance with the British Standard 5839 and British Standard 5266 Part 1 and kept in proper working order. On demand, by the council, the licence holder shall provide a declaration as to the safety and positioning of such alarms.

The licence holder must ensure that the smoke/heat detectors and, fire alarm system and fire equipment is kept in proper working order and shall employ the services of a competent person to annually check and test the fire alarm system and any fire extinguishers and fire blankets contained within the property and shall, upon demand from the Local Authority, provide evidence of the aforementioned testing and maintenance.

In any event, the licence holder shall produce evidence of servicing and testing of the fire alarm system annually for the inspection by the local authority.

Carbon Monoxide Detection

The licence holder must ensure that a carbon monoxide alarm is installed in any room that contains a solid fuel burning appliance, such as a coal or wood-burning fireplace, and gas boilers.

The carbon monoxide alarm(s) should be compliant with British Standard BS 50291 and kept in proper working order. On demand, by the Council, the licence holder shall provide a declaration as to the condition and positioning of such alarms.

Tenancy agreement

A written tenancy agreement shall be provided to all occupants of the property clearly setting out the terms on which they occupy it. On demand, by the council, the licence holder shall provide a copy of any tenancy agreement. (Applicable to houses, flats, bedsits, etc.).

The agreement is to include the following:

• The type of tenancy, its duration and terms of notice.
• The amount of rent due together with dates and methods of payment, and the circumstance when the rent may be reassessed.
• The amount of deposit taken, how it is held and the terms for its return.
• The details of what the rent covers, how it is to be paid, how any changes of rent will be notified to the tenant, arrangements for the return of rent deposits and how any deductions from the deposit will be agreed.
• The respective responsibilities of the landlord and tenant for cleaning, repairing and maintaining the property, fittings and furnishings. This to include timescales for the tenant to report any disrepair which is the responsibility of the landlord to rectify, and for the landlord to respond.
• The tenant is entitled to receive 24 hours’ notice, in writing, of the landlord’s intention to enter the property, or areas of the property to which he or his staff do not normally have access, for the purpose of carrying out maintenance, repairs or inspection. (Except in the case of an emergency).
• The tenant, and any person visiting the tenant, must not commit any form of harassment or behave in a way that causes nuisance or distress to any other person in, or in the locality of the HMO.
• Details of the landlord’s name, address and contact telephone number.
• Whether the tenant may sublet and any restrictions on tenants having visitors.

Conditions imposed by the council by virtue of section 67 of The Housing Act 2004 (Imposed Conditions).

These apply to houses and flats which are HMOs, and where applicable common parts of buildings that are HMOs or section 257 HMOs:

Fire alarm system and emergency lighting

The licence holder shall ensure that the emergency lighting installed within the property is maintained and tested and shall employ a competent person to do so, and shall, upon demand from the local authority, provide evidence of the aforementioned testing and maintenance.  In any event, the licence holder shall annually produce evidence of servicing and testing for the inspection of the local authority.

The licence holder shall provide the council with a commissioning or inspection certificate provided by a competent electrician in accordance with British Standard 5839 Part 6. The council will accept a certificate obtained in the last 12 months. Further certificates to be provided if alterations or additions are made to the system.

All fire alarms and emergency lighting should be maintained and serviced in accordance with the British Standard 5839 and British Standard 5266 Part 1 and kept in proper working order. On demand, by the council, the licence holder shall provide a declaration as to the safety and positioning of such alarms.

Fire safety items

The licence holder shall employ the services of a competent person to annually check and test the fire extinguishers and fire blankets contained within the property and shall, upon demand from the local authority, provide evidence of the aforementioned testing and maintenance.  In any event, the licence holder shall annually produce evidence of servicing and testing for the inspection of the local authority.

Fire precautions

The licence holder shall ensure that any faults identified affecting the fire precautions and equipment contained within the property are remedied within a reasonable time period by, if necessary, the appropriately competent person and shall keep a log of all faults, indicating date of when the fault was found and the date the fault was remedied and shall, upon demand from the local authority, provide a copy of the log.

Refuse and litter

The licence holder shall provide and maintain the provision of suitable refuse and litter bins or other suitable receptacles on a scale adequate to the requirements of residents, except insofar as such provision is made by the local authority and make such supplementary arrangements for the disposal of refuse and litter from the property as may be necessary, having regard to any service provided by or required by the local authority.

The licence holder must ensure that there is adequate and sufficient provision for the collection, storage and disposal of waste from the property. This may require a commercial collection contract. The council may require the provision of documentation of any such commercial contract.

Repair and condition

The licence holder shall ensure that all parts of the property in common use are in and are maintained in repair (including, where appropriate, decorative repair), a clean condition and good order.

Maintenance

The licence holder shall ensure that all installations within the property in common use are in and are maintained in repair (including, where appropriate, decorative repair), a clean condition and good order.  This includes kitchen, bathroom and laundry facilities.

Cleanliness

The licence holder shall ensure that any living accommodation is in a clean condition at the beginning of a resident’s occupation of it.

Tidiness

The licence holder shall ensure that such parts of the property in common use as comprise staircases, passageways, corridors, halls, lobbies, balconies and entrances (including entrance doors, porches and steps) are kept free from obstruction.

Services provision

The licence holder shall not unreasonably cause a supply of gas or electricity to any resident in the house to be interrupted.

The licence holder shall ensure the installations in the accommodation for the supply of water, gas and electricity, for space heating and heating water and for sanitation are in and are maintained in repair and proper working order.

Water supply

The licence holder shall not unreasonably cause a supply of water to any resident in the property to be interrupted.

Services

The licence holder shall ensure that installations for lighting serving any part of the property in common use are readily available for use by residents to such extent and at such times as they may reasonably require.

Drainage and water supply

The licence holder shall ensure that all means of water supply and drainage in the property are in and are maintained in repair, a clean condition and good order (including, where appropriate, proper working order).

External areas

The licence holder shall ensure that boundary walls, fences and railings (including basement area railings), insofar as they belong to the property, are kept and maintained in repair so as not to constitute a danger to residents.

The licence holder shall ensure that every outbuilding, yard, area and forecourt which belongs to the house and is in common use, is in and is maintained in repair, clean condition and good order, and that any garden in common use belonging to the house is kept in a reasonable condition.

Property plan

A plan of the property showing the layout, location, room size (square feet or square metres) and number of rooms must be provided to the council if there are any changes or alterations to the property that deviate from the plan provided at the time of the licence application and/or subsequent to the licence being granted.

Managing anti-social behaviour

The licence holder must comply with all relevant legislation regarding the management of the property in such a way as to seek to prevent, or deal effectively with, any anti-social behaviour by tenants to anyone else in, or in the locality of the House in Multiple Occupation. In this regard, the landlord or their agents shall investigate complaints of noise and other possible sources of nuisance or anti-social behaviour, whether these complaints are made by the residents of the property or by residents of neighbouring properties. Where the landlord determines these complaints to be justified, they shall take all reasonable steps to resolve the problem.

Provision and display of information in property

The name, address and contact telephone number (including an emergency contact number) of the licence holder or manager must be displayed and remain displayed, in a prominent position, within the common parts of the property.

A copy of the licence, licence conditions, Electrical Installation Certificate and Gas Safety Certificate must be displayed and remain displayed, in a prominent position, within the common parts of the property. Adjoining neighbours must be provided with contact details of the licence holder or manager. The licence holder must provide tenants with clear advice on action to be taken in the event of an emergency.

Maintenance of records

The licence holder or property manager shall attend the property at frequent intervals and a written record of visual inspections undertaken relating to the overall condition of the property shall be maintained and produced to the council when requested. The purpose of the inspections is to:

1. Ensure the proper management of the property;
2. Ensure compliance with The Management of Houses in Multiple Occupation (England) Regulations 2006,
3. Ensure the property is maintained in such a condition that category 1 hazards, within the meaning of Part 1 of the Housing Act 2004, are not present or quickly eliminated.

The licence holder shall ensure maintenance of records of all inspections and of any works undertaken and make copies of these available for inspection by tenants and the council. Tests must be carried out in relation to the fire safety systems and equipment as detailed below. All tests must be recorded in a logbook kept available for inspection by tenants and the council.

Maintenance of records

System	Frequency of inspection
Fire alarm system	Weekly or monthly (in accordance with British standard 5839) depending on the type of system installed.
Emergency lighting system	Monthly (in accordance with British standard 5266)
Fire extinguishers	Annually (in accordance with British standard 5306)
Fire doors	Monthly

The above tests are additional to any periodical inspection and servicing carried out by competent persons/specialist company in accordance with British Standard 5839 part 6.

Relevant legislation

The licence holder must comply with the Management of Houses in Multiple Occupation (England) Regulations 2006 and the Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 (including any subsequent amendments and revisions) and all other relevant legislation affecting private sector residential tenancies, and all legislation relating to other activities carried on in the premises, including the Housing Act 2004.

Material changes to the licensed property or licence holder

The licence holder is required to notify the council of any changes to the property, including structural alterations, changes to the ownership or management, or events that may affect the fit and proper person status of the owner, licence holder or manager, which may affect the licence.

Where there is a material change of circumstance affecting the licence holder or the operation of the property, the licence holder must inform the council immediately. No alteration which may affect the licence contents or conditions attached to the licence may be made to the property without the prior written consent of the council, including change of address of the licence holder or manager.

Notification of changes to licence details

During the period of the licence the council must be notified immediately:

• if an application to vary the licence has been received from the licence holder or relevant person by the council and variation to the licence has been agreed between the council and existing licence holder
• if there has been a change of circumstances to the premises since the licence was granted
• if the number of households or persons appropriate as the maximum number authorised to occupy the House in Multiple Occupation (including each room) has changed since the date the licence was granted
• if standards in relation to the occupation of the property by a particular number of households or persons have changed since the date the licence was granted

An application must be made to the council to change or ‘vary’ the licence details for the premises. A failure to notify the council of such a change would constitute an offence.

The licence holder must inform the council if they no longer reside at the address and provide the council with the new address details within 21 days.

The licence holder must inform the council if there is a change in managing agent within 21 days.

If the licence holder is a managing agent they must inform the council if the person who is specified as the main contact ceases to be employed by them and inform the council of the new contact within 21 days.

If the licence holder is a managing agent they must inform the council if they cease to have an interest in the property within 21 days.

General terms which apply to the licences issued by the council:

• The licence only covers the property or parts of the property named in the document.
• The licence is not transferable to another person.
• This licence comes into force on the date of issue.

A licence lasts for a maximum period of five years (but may be any period between one and five years) from the date the licence was granted unless the following apply:

• The licence holder dies whilst the licence is in force.
• The licence is revoked under section 70 of the Housing Act 2004.
• The licence will continue to be in force even if the property ceases to be a licensable House in Multiple Occupation unless the licence holder dies, or the licence is revoked.
• If the licence holder dies within the licensing period, the licence will cease to be in force.

On the death of the licence holder the following shall apply:

• The licence ceases to be in force upon the death of the licence holder.
• For a period of three months from the death of the licence holder the property shall be treated as if a Temporary Exemption Notice (TEN) had been served.
• If during the initial three-month period the personal representatives of the licence holder requests the local authority to do so, the authority may serve on them a notice which, during the period of three months after the date on which the initial period ends, has the same effect as a temporary exemption notice.

Planning and building regulations

No grant of planning or building regulations is inferred or implied by the issuing of a HMO licence and you must ensure that you have obtained all relevant approvals, authorisations or certificates as may be required, from the relevant department.

 

Penalty schedule and length of licence

Penalty schedule	Length of licence
Application submitted within three months of commencement of an additional HMO licensing scheme.	Licence issued for five-year duration
Application submitted after three months of the commencement date of the additional HMO licensing scheme but prior to investigation and/or contact by the Private Sector Housing team.	Licence issued for three-year duration
Application submitted after three months of the commencement date of the additional HMO licensing scheme but after investigation and/or contact by the Private Sector Housing team.	Licence issued for two-year duration
Application where a property is found to have been operating without a licence under the mandatory HMO licensing scheme for more than three months, following receipt of a complaint or as a result of other investigations.	Licence issued for one-year duration

The responsible person may also be subject to enforcement action, for example prosecution or issuing of a penalty notice.

Rent Repayment Orders

The Housing Act 2004 introduced Rent Repayment Orders (RRO) to cover situations where the landlord of a property had failed to obtain a licence for a property that was required to be licensed, specifically offences in relation to licensing of Houses in Multiple Occupation and offences in relation to licensing of houses under Part 3 of the Act. Rent Repayment Orders were extended through the Housing and Planning Act 2016 to cover a much wider range of offences. An unlicensed property subject to a RRO imposed by the local authority, can require the landlord to repay up to 12 months’ worth of rent. If rent was paid through Housing Benefit or through the housing element of Universal Credit, then the rent must be repaid to the local housing authority. If the tenant paid their rent themselves, then the rent must be repaid to the tenant. If the rent was paid partially by the tenant with the remainder paid through Housing Benefit/Universal Credit, then the rent should be repaid on an equivalent basis. Failure to comply risks being issued with a banning order that prevents the property from being let. Serious and repeat offences may result in prosecution, a sentence of up to five years, and an uncapped fine. The landlord may also be listed on the government’s Rogue Landlord database. An unlicensed property also means that the property manager cannot serve the occupier with a section 21 eviction notice under the Housing Act 1988, potentially preventing them from regaining possession of the property at the end of a tenancy agreement. 

The penalty fees (and any other additional fees) proposed for the additional HMO licensing scheme will also be applied to the already existing mandatory HMO licensing arrangements to ensure consistency across the entire licensing regime within the district.