In the latest consultation paper on Houses in Multiple Occupation, the Government introduced residential licensing reforms including an extension of mandatory licensing.
Currently, the definition of a mandatory licensable HMO can be found in Licensing of Housing in Multiple Occupation Order 2006. Mandatory licensing applies to any property that has more than three storeys high; has five or more occupiers living in two or more single households; and has shared facilities i.e. kitchen, bathroom or toilet.
The proposals set by the Department for Communities and Local Government seek to remove the reference to “three or more storeys” from the prescribed description of large HMOs so that all HMOs occupied by five or more people from more than one household are included. The Government is also proposing to include flats above and below business premises; and clarify that the minimum room size 6.5m2 for sleeping accommodation applies to all licensable HMOs.
The extension of mandatory licensing for HMOs is set to take force some time in 2017, subject to Parliamentary approval. The intention of the expansion is to provide tenants greater security and certainty over the quality of the accommodation to be
rented. The government’s view is that this will benefit local authorities, as they will be provided with a more accurate representation of the HMOs in their area, and be better equipped to counter non-compliance.
One view is that by widening the scope of mandatory licensing for HMOs, it is tackling the problems that can arise in this type of accommodation. HMOs account for some of the most affordable accommodation on the rental market and are used to house some of the most vulnerable people in society. It is therefore important that this sector of the letting market is properly regulated, whilst at the same time allowing scrupulous landlords the regulatory space to make this type of accommodation worth letting. The proposed reforms certainly demonstrate government support for greater enforcement in an attempt to curb non-compliance. However, as
always, it will remain to be seen whether already hard-pressed local authorities will have the resources to meet this increased regulatory responsibility.
In conclusion, this is a very complex area and one that is due to become more complex. It is very important that landlords are complying with the relevant regulations and requirements and Burke Niazi are able to offer advice to tenants, landlords and property professionals alike.