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Part 2 of the Housing Act 2004 introduced a Mandatory Licensing Scheme for certain houses in multiple occupation known as HMOs.

If an HMO has 3 or more storeys (including basements and mezzanines), is occupied by 5 or more persons, forming 2 or more households and there is some form of sharing of bathroom and/ or kitchen facilities, then the property will probably require a License.

It is a criminal offence for a person having control of a Licensable HMO not to apply for a License and a fine of up to £20,000 could be imposed if the Council decides to prosecute.

The Council must grant a License if it is satisfied that an HMO is suitable for occupation by a set number of people and adequate amenities are available.

The applicant for a License must be a fit and proper person and the property to be Licensed must be properly managed.

Certain conditions will be attached to any License granted and if these conditions are breached or not complied with, then the Council can pursue Legal action, which can include Prosecution and/ or a revocation of the License.

Initially, Licenses were granted for 5 years and the License Fee of £550 (plus on-costs) is being paid in annual instalments.

From 01st April 2007 this arrangement has been revised and Licenses will now run for 1 year and the License Fee will be £200 (plus on-costs).

Where a Licensable HMO is incapable of being Licensed or has had it’s License revoked, then the Council is under a duty to serve a Management Order, which effectively transfers the Management of the HMO to a Managing Agent who has been appointed by the Council.

The costs of improving the property and the management and maintenance fees can be recovered from the Rental stream, with any surplus being paid to the Landlord.

For further information:

Brian Yates
Manager – HMO Team
0151 691 8665
brianyates@wirral.gov.uk