Definition of HMO under selective licensing?

Definition of HMO under selective licensing?

9:35 AM, 2nd August 2024, About 4 months ago 10

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Hi, I received an email from LCC selective licensing update. This is the email below:

The newsletter is distributed to a House in Multiple Occupation and Selective Licensing mailing list to over 2350 landlords, 129 Letting/Managing agents registered within Leicestershire, 8 Landlord Associations and individuals who have asked to receive it.

We hope this change will meet your needs and give you an avenue to engage with all teams involved in the private rented sector.
Selective licensing update
The Selective Licensing Scheme has been in operation since the 10th October 2022. To date we have received 4740 licence applications undertaken 3,920 property inspections and issued 3,594 licences.

During the first 18 months of the scheme the team concentrated on processing applications and property inspections. The team have now moved on to proactively looking for unlicensed properties. A programme of door knocking within the selective licensing areas is underway. Inspectors will be identifying unlicensed properties and contacting landlords and managing agents to find out why they are not licensed.
Where properties are found to be operating illegally enforcement action will be considered.
Failure to license a property may result in:
enforcement action for operating an unlicensed property, this could be a prosecution and an unlimited fine or the issuing of a civil penalty up to £30,000.
a court determining that a section 21 Notice is invalid.
your tenants applying for a Rent Repayment Order requesting repayment of up to 12 month’s rent

HMO – The team also license Houses in Multiple Occupation (HMOs) that are occupied by 5 or more unrelated people. The properties are inspected to ensure that any risks or hazards are minimised and safe.

No wonder private sector landlords wish to exit. Its clear that they want to punish landlords! Rent repayment order! Validity of Sec 21 notice!

Renters get FREE support when we have to use solicitors. Instead should mediate between both landlord and tenant and ascertain better outcomes ….

Also I’m confused with the HMO definition changes from authority to authority eg number of occupants.  Here it states 5 persons is this correct?

Thanks,

G


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David Houghton

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9:46 AM, 2nd August 2024, About 4 months ago

The definition of an hmo is on legislation.gov.uk. S 255 to 259 I think.

Local authorities have different rules for selective licensing. Which is covered in part 3 of the act.

Non licensable HMOs may or may not qualify for other things such as enhanced fire regs.

So it really is case by case and even the authorities are not always sure what legislation applies

Mark Cairns

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10:34 AM, 2nd August 2024, About 4 months ago

This might be new in Leicester but we’ve had this (‘Additional HMO Licensing’ for ‘small HMOs’) for a long time now in two of the council areas that I let in.

A small HMO is defined by my council as 3 or 4 persons forming 2 or more household and sharing a toilet, bathroom or kitchen. I don’t know if that differs across councils.

Once you hit 5 and above, then it’s mandatory HMO licensing.

Ian Narbeth

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11:15 AM, 2nd August 2024, About 4 months ago

Sorry G but landlords need to know the rules and abide by them. If you run a large HMO, you need to be licensed. If your property is in an area where selective licensing applies, you need to observe the rules. The definition of an HMO is here.

On one reading, landlords in Leicestershire are being given fair warning that they need to register. The notice is only stating the truth that failure to register has serious adverse consequences.

Paul

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11:43 AM, 2nd August 2024, About 4 months ago

I live in the selective licensing area of Westcotes in Leicester. I have received a letter from LCC stating. There is a higher risk of tenants dying in unlicensed properties that don't have proper fire safety features. If your property lacks the required licence, you are entitled to have up to 12 months rent repayments paid back to you. This is called a rent repayment order. Your property does not have a licence.
It does state that this only applies to privately rented properties.
I spoke to a senior council member when I was applying for my own licence. I told her that they were targeting the wrong people. Her reply was " Don't worry, we WILL be come down hard on the rogue LLs who don't get a licence" I guess this is what she meant.

DGM

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12:48 PM, 2nd August 2024, About 4 months ago

So if a a small HMO is defined by my council as 3 or 4 persons forming 2 or more household and sharing a toilet, bathroom or kitchen.

What about 2 lodgers in a house, would that be considered 3 households or as the owner lives there is this exempt

Paul Essex

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13:53 PM, 2nd August 2024, About 4 months ago

Reply to the comment left by DGM at 02/08/2024 - 12:48
The councils seem free to come up with any definition they like. To coin a phrase it's a postcode lottery.

DPT

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15:43 PM, 2nd August 2024, About 4 months ago

There's a lot of misinformation in this thread.
1. Any property with 3 or more people in 2 or more households is an HMO
2. Not all HMOs are necessarily licensable. Statute says 5 more more people in 2 or more households is a mandatory licence.
3. Councils can elect to licence 3 or 4 person HMOs. If they do, this is called Additional Licensing
4. Selective Licensing has nothing to do with HMOs. It's where Councils elect to licence every rented property that is not an HMO.
5. Owner occupiers are allowed a maximum of 2 lodgers without the property becoming an HMO.

Mark Cairns

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9:03 AM, 3rd August 2024, About 4 months ago

Reply to the comment left by DPT at 02/08/2024 - 15:43
Thanks DPT, that's very clear and good to know!

PAUL BARTLETT

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22:28 PM, 3rd August 2024, About 4 months ago

With fines of £30,000 why should any council be surprised that the risks are unsustainable for a 5% ROI business along with licence costs of £300 per bedroom?

The licence costs may be passed on to tenants but the £30k risk cannot.

No wonder councils cannot find PRS lettings to take their tenants and other tenants find no supply available.

I'm out!

Jim K

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14:28 PM, 4th August 2024, About 4 months ago

Reply to the comment left by DGM at 02/08/2024 - 12:48
Hi.
This is all.covered by legislation.
2 lodgers with a Live in LL does not costitute an HMO.
3 does, but rules are slightly different to a HMO where the LL is not living in.

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