Houses in Multiple Occupation Licence

A landlord who is managing a property which meets the criteria for licensing must apply for that property to be licensed as a House in Multiple Occupation. If you are unsure whether or not your property is a House in Multiple Occupation that requires licensing, you will need to check this with the local council.

If your property is a House in Multiple Occupation that requires licensing, you can apply to the local council for a licence. The Council will charge a fee for a House in Multiple Occupation Licence, the amount of which varies from council to council.  The council will not refund the fee if the Houses in Multiple Occupation licensing application fails.

When making an application for a House in Multiple Occupation licence for your property you will need to notify everyone who is affected by licence that you are making the application. This includes the tenants within the property, the managing agent and anyone who has a legal interest in the property, in the case of a freehold property this will be owners of the freehold property; in the case of a Leasehold property the owners of both the leasehold title and the freehold title including any head leasehold title owners and any mortgagee. Council will also have to be made aware of the details of all those who have a legal interest in the property. You do not have to inform any tenant who occupies under an Assured Shorthold Tenancy.

What are the terms of the Houses in Multiple Occupation Licence?

A licence for a House in Multiple Occupation lasts for 5 years. The council may in certain circumstances grant a House in Multiple Occupation licence for a shorter period of time.

The factors that the Council will take into account when deciding whether or not to grant the House in Multiple Occupation licences are as follows:

1.    The suitability of the property for the number of people in occupying.

2.    The suitability of the amenities within the property (bathroom, toilet, cooking facilities etc)

3.    The suitability of the landlord to manage the property –‘the fit and proper person’ test.

4.    The general suitability of the management arrangements.

The council must be satisfied that the landlord is the most appropriate person to manage the property. If the council is not satisfied that the landlord is the most appropriate person to manage the property, they will insist that the landlord appoints a managing agent.

When the House in Multiple Occupation licence is granted, the landlord is under an obligation to ensure that the standard of the property is maintained. The landlord is under the following obligations:

1.    To produce to the council an annual gas safety record

2.    To ensure that all electrical installations and furniture provided by the landlord are kept in a safe condition. Electrical installations must be checked at least every five years. The landlord must provide the local council with a declaration of their safety, on demand.

3.    To install smoke alarms and keep them in good order and supply to the local council, on demand a declaration of their condition and position.

4.    To give the occupiers a statement of the terms under which they occupy the House in Multiple Occupaton

The local council can specify further obligations at their sole discretion.

Before granting the House in Multiple Occupation licence, the local council will send the applicant, usually the landlord, and all those affected by the licence a summary of the terms of the proposed licence with an explanation as to why those conditions have been imposed. The applicant then has fourteen days to respond and consult with the local council. If the applicant does not agree with the terms of the licence, or a House in Multiple Occupation licence is refused, the applicant can appeal to a Residential Property Tribunal.  

What if a House in Multiple Occupation Licence is Refused?

If the local council cannot grant a House in Multiple Occupation licence, they must impose an ‘Interim Management Order’ (see below).

If the local council has not received an application from the landlord for a licence for a property that the local council consider to be an House in Multiple Occupation that is licensable, they can serve a ‘Houses in Multiple Occupation Declaration’, this will mean that the property will come under the Houses in Multiple Occupation legislation. Again, the landlord can appeal against this to a Residential Property Tribunal.

Properties Exempt from Mandatory Licensing:

Properties converted into a block of self-contained flats, may be licensable under the Houses in Multiple Occupation provisions if the property meets the Houses in Multiple Occupation definition within the Housing Act 2004.  This type of House in Multiple Occupation is exempt from the Mandatory Houses in Multiple Occupation licensing  legislation but may still be licensable under the Additional Licencing provisions whereby the local council uses its discretionary powers to designate the area in which the property is situated as an area for additional Houses in Multiple Occupation licensing.

If the landlord is living in the property with a maximum of two other occupiers (not within a single household) they will be exempt from having to obtain a House in Multiple Occupation licence.

A property can be temporarily exempted from the Houses in Multiple Occupation licensing provisions by the local council, in certain circumstances.  An example of this is where the landlord has died, and the executors of his estate are selling the property. The exemption will usually last for three months but can be further extended at the sole discretion of the local council.

Once licensed, a property does not have to be permanently licensed as a House in Multiple Occupation and the landlord can apply to the local council to have the licence revoked if the property is no longer being used as a House in Multiple Occupation.

If the local council believes that the landlord is evicting tenants to avoid the Houses in Multiple Occupation licensing provisions, the local council can make an Interim Management order.

A licence for an House in Multiple Occupation is not transferable. When the ownership of the property is transferred to another party or in the case of a property whereby the managing agent holds the House in Multiple Occupation licence, the managing agent changes, the new owner or managing agent will have to apply for a new House in Multiple Occupation licence.

Penalties running a House in Multiple Occupation without a licence:

If your property is a House in Multiple Occupation that falls under the Houses in Multiple Occupation licensing criteria and you do not apply for a House in Multiple Occupation licence, you can be fined up to £20,000. Other sanctions are that the local council can make an Interim Management Order whereby they take over the management of the property and have all rents paid directly to them.  

The local council can also apply for a ‘Rent Repayment Order’ and in the event that tenants have been paying their rent with housing b