HMO licensing frequently asked questions

Below is a list of frequently asked questions about HMO Licensing.

What is an HMO?

A house in multiple occupation (HMO) is a building which is occupied by three or more people forming two or more households, It includes buildings containing bedsits, shared houses and some buildings which have been converted into self-contained flats

Some HMOs are excepted from licensing, for example HMOs owned or managed by public bodies such as the National Health Service.

What is Additional HMO Licensing?

The Housing Act 2004 provides a power for Local Authorities to license HMOs which are not covered by Mandatory Licensing. Part 2 of the Housing Act provides for Additional Licensing of HMOs for example, in an area or the whole borough.

What is the difference between the  Mandatory and Additional HMO Licensing schemes?

Mandatory HMO Licensing is a nationwide scheme which has been in force since 2006 and will continue indefinitely.  It applies to HMOs that have five or more occupiers.

Additional HMO licensing will be introduced in early 2023 and will last for five years unless renewed.  It applies to all HMOs occupied by three or four persons and to certain buildings converted into self-contained flats (known as ‘Section 257’ HMOs).

Which area is covered by the Additional HMO Licensing scheme?

The Council will soon introduce a borough wide Additional HMO Licensing scheme. 

What properties would be affected by Additional HMO Licensing?

The scheme will cover all HMOs of any size building, occupied by three or four unrelated persons and all Section 257 Houses in Multiple Occupation (buildings converted into self-contained flats) where the building is wholly occupied by tenants.

I thought you already licensed Houses in Multiple Occupation (HMOs)?

Under Part 2 of the Housing Act 2004, the Council has a statutory duty to license privately rented HMOs occupied by five or more persons in two or more households. This is known as Mandatory HMO Licensing. You can find out more about this type of licensing on the Mandatory HMO Licensing web page.

Is this a property or landlord licence scheme?

Addional HMO Licensing is a property licence scheme, and every property a landlord owns within the proposed boundary would need its own licence.

How long will the licence last?

Once introduced, the licence will be granted for up to five years but could be for a reduced period depending on the circumstances of the property or of the proposed licence holder or manager. To grant a licence with a reduced period there would need to be a valid reason such as a previous history of non-compliance.

Is the licence transferable?

A property licence is not transferable to another property, person or organisation.

Would an empty property need a licence?

A licence is only required if the property is privately rented and occupied.

What is the application process?

The Council is working towards an online application and payments system and information will be available on the Council's website once applications open.

What happens if I don't get a licence?

If you don't apply for a licence and continue to rent your property, then you will be committing a criminal offence and could be fined and taken to court for breaking the law. See Enforcement Policy

What would happen if a landlord failed to apply for a licence?

It is a legal requirement for landlords to apply for a licence, and a criminal offence if a landlord fails to apply for required licence and could be find £30,000. or prosecuted and if found guilty be an unlimited fine. More information can be found in the COuncil's enforcement policy.

Who should be the licence holder?

The licence holder must be a person or a company that receives the rent from the property, for example the owner or the managing agent

What happens if the licence conditions are breached?

If a licence is granted and the licence conditions are subsequently breached, this could lead to the Council taking legal action or issuing fines in accordance with Council’s Enforcement Policy.

Will my licensed HMO be inspected?

The Council aims to inspect every HMO once during the five-year licence period.

A higher risk property will be inspected sooner than a lower risk one. The level of risk depends on previous history, condition, management, etc.

How much will a licence cost?

The standard licence fee will be £700 (subject to change) and will be for the duration of the designation of the Additional Licensing scheme, which will be five years from the commencement of the approval of the licence should this be ‘from commencement of the scheme’. 

Discounted fees apply if the licence holder and the property are registered with the DASH accreditation scheme.

Can I pay in instalments?

There is no option to pay by instalments. The licence fee is paid in two parts:

• £395 when you apply for your licence
• £305 once the licence has been granted, or £220 if registered with the DASH accreditation scheme

What documents would I need to submit with my application?

• The online licensing website will provide a simple step and guide on how to apply and what document you need to supply, below are some of the main documents we will require in order to process your application.
• A floor plan showing the room sizes in metric and usage of every room including bathrooms, The plan must also show the location of any fire precautions such as fire alarms/smoke detectors etc.
• Gas safety certificate if there is a gas supply to the property.
• A satisfactory Electrical Installation Condition Report (EICR).
• A fire risk assessment.
• A PAT certificate for any appliances supplied by the landlord. If the items are new, then a copy of receipts will be sufficient

I'm a landlord of a property that could be subject to Additional Licensing. What do I need to do?

Once applications for the licensing scheme open, please apply.

To recieve the latest information about the licensing scheme, please register for our landlords newsletter.

I'm a tenant of a property that could be subject to Additional Licensing. How will it affect me?

Additional Licensing of HMOs requires landlords to provide items such as gas safety certificates, the safe provision of electrical appliances and furniture and to keep the fire detection and alarm system in working order.

This should provide a greater degree of safety and reassurance to the tenant.

Tenants will have reassurance that checks have been done to ensure both the property and any shared facilities are suitable and that the property is suitable to be occupied by the number of people living there.

Will I be able to see which properties are licensed?

The Council will keep a list of properties that are licensed, and this will be publicly available on its website.

What conditions will apply to Additional Licensing?

There will be a range of conditions attached to each licence which will relate to the management of the property. There are some mandatory conditions, which we are required by law to place on the licence.

These include conditions regarding gas safety, electrical safety, smoke alarms etc.

How will you manage to license all these properties?

The Council is proposing to employ more officers to implement and manage the scheme.

I'm not a tenant but I do live in the area so how would it affect me? 

Additional Licensing will ensure that HMOs not subject to mandatory licensing in the privately rented properties in your area are being managed efficiently and will enable the Council to take enforcement action against a wider range of properties where there may be problems.

This should result in benefits to all residents, businesses and visitors to the local area.

Will you penalise those that don't licence?

There will be a targeted approach to enforcement and the Council will use a variety of methods to find those that haven't licensed. We will respond to complaints received about unlicensed property.

Where necessary we will seek to prosecute those that continue to refuse to license their property.

How will you know if an HMO is unlicensed?

Tenants will be able to inform the Council if they believe their property is unlicensed. The Council will use a variety of methods, working with other partners to seek out unlicensed properties.

There will be a public register of licensed properties, so it will be easy for residents to find out if the property they are concerned about is licensed or not.

Once I have applied for a licence, would my property be inspected?

Once you have applied for a licence there are two types of inspections that could be required to take place.

• Verification inspection if needed - these inspections are carried out when an officer needs to confirm information within the application and is not necessary for all licences issued. The result of this could be that special conditions are added to your licence.
• Housing Health Safety Rating System (HHSRS) - Every licensed property will have an HHSRS inspection, and the result of this inspection could be that remedial works are required if deficiencies of the property are found

Does a HMO need planning permission?

If the property is in Loughborough and has three or more unrelated tenants then planning permission is required for it to operate as a HMO rather than as family accommodation.

A HMO with more than six unrelated people sharing is deemed a 'larger' HMO and will always require planning permission, whether in Loughborough or elsewhere in the borough.

• Planning control for Houses in Multiple Occupation

Larger HMOs will also require a mandatory licence from Charnwood Borough Council. Please see the property licensing fees for more information.