You will most probably have read in the press of the imminent introduction of a new licensing system in England and Wales, which will require some, but not all, Landlords of residential premises to obtain a licence from the local authority in which the premises are located.

Who will be affected?

The Housing Act 2004 introduces a new definition of a “House in Multiple Occupation” (HMO) which is a building or part of a building consisting of one or more units of living accommodation, or a self-contained flat, occupied by persons who do not form a single household and where there is some sharing of basic amenities such as kitchens, bathrooms or toilets.

From 6th April 2006 Landlords of some HMO’s will be required to obtain 5 year licences from the appropriate local authority. The cost of the licence will vary but is expected to average about £100 per occupant.

Which Properties will be affected?

HMO’s which comprise three or more storeys and accommodate five or more persons, who form two or more households, will be required to be licenced. A household may comprise one person.

However, be warned, it is open for each local authority to decide whether they extend the scheme to other properties and it is therefore essential that Landlords check with each and every authority within which they own let residential properties.

Who can hold the Licence?

The Landlord, or if they wish another person nominated by the Landlord such as a manager or agent, can hold the licence but each licence can only relate to one property and is not transferable if the property is sold.
What is the procedure?

An application must be made to the appropriate local authority from 6th April 2006 onwards but we are advised that there will be a three month period of grace.

The local authority may or may not decide to visit the property but in any event will want to be satisfied as to the condition of the property.

What if I fail to make an application?

From 3rd July 2006 all liable HMO Landlords who have not applied for a licence will face possible enforcement measures including fines of up to £20,000.00.

Tenants and former tenants of Landlords who have failed to apply for a licence after 3rd July 2006 may, in certain circumstances, be able to apply for a Rent Repayment Order which could result in the Landlord having to repay all or part of the rent.

What do I need to do?

If you are the owner of a residential property, which is either let or intended to be let, check the position with the local authority in whose area the property is located. If you have more than one such property then check with each and every such authority. The requirements may vary from one authority to another so do not assume that they will be the same.

IF YOU ARE IN ANY DOUBT: CHECK IT OUT