News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the April / May 1999 issue RPI news archive

HMG proposes to licence HMOs - April / May 1999

Further Government intervention into the rented housing market was promised last month with proposals for a 'tough new licensing scheme' for houses in multiple occupation.

'HMOs are a key source of housing for some of the most vulnerable in our society, including young people, students and those who are socially or economically disadvantaged', said Housing Minister Hilary Armstrong, introducing the proposals.

'Unfortunately some of the worst housing conditions are found in HMOs'.

Contained in its consultative paper Licensing of houses in multiple occupation– England (there are to be separate papers for Wales and Scotland), the Government's proposals would restrict renting of HMOs to those who can demonstrate they are able to meet specified criteria.

These would cover the physical standard of the premises, including 'adequate fire safety, kitchen and bathroom facilities', standards of good management, and fitness to be a licensee. The latter 'may include checking criminal records and ensuring adequate training on, for example, fire safety'.

Current estimates are that 1.5m people live in 550,000 privately rented HMOs in England.

Crucial to any system will be the definition applied to HMOs. And here landlords had some good news recently when a Manchester court decided a house occupied by eight students was not in multiple occupation despite the fact that each bedroom had a lock - one of the conditions laid down in previous case law.

lthough the case does not set down a legal precedent it does come against the background of courts taking an increasingly pragmatic view of what constitutes an HMO, solicitor Richard McClean who acted in the case told RPI.

Meanwhile the Government has confirmed it is not proposing licensing for all rented housing, which 'would be bureaucratic and may discourage the supply of good quality rented housing'.

Copies of the consultative paper dealing with licensing of HMOs is available from DETR Free Literature, PO Box 236, Wetherby LS23 7NB. Closing date for responses is 2 July.
 

other artilces from the April / May 1999 issue

• Licensing Logic
• HMG proposes to licence HMOs
• City's central role
• In brief
• Brown serves up mixed Budget
• Housing benefit set for major reform
• Title checks 'superficial'
• CO alarms recalled
• House prices take drop