HMO: Does the latest court case really make legislation any clearer?
As reported in a recent NAEA newsletter, there has been a recent conviction with regards to the current, and quite frankly confusing, HMO (Houses under Multiple Occupancy) legislation. The press release read as follows:
’A Cotswold private landlord has been convicted of letting accommodation illegally
without the required licence in a landmark case that will have a nationwide impact.
Roderick Williams of 20, Melmore Gardens, Cirencester, was found guilty of an
offence under section 72(1) of the Housing Act 2004 on January 4th at Gloucester
Magistrates Court.
Mr Williams was fined £1,500 and ordered to pay Cotswold District Council’s
prosecution costs.
The Council’s Environmental Health Officers visited the rented accommodation at 24,
Melmore Gardens, following complaints in February 2007 and found that the property
required a licence due to the number of people living at the address.
Specialist Environmental Health Officer Rachael Kayani said after the hearing: “This
case brought by Cotswold District Council is of particular importance because it
clarifies the ambiguous legislation that defines which storeys within a building should
be counted when determining if a house in multiple occupation, or part of it,
comprises three storeys or more.”
A legal judgment on the case given on December 21st 2007 at Gloucester confirmed
that a self-contained ground-floor flat at a property does in fact count towards the
total number of storeys. This clarified a grey area within the legislation and enabled
the case to proceed.
Rachael added: “This is of national significance and the Council will be informing the
Local Authority Co-ordinators of Regulatory Services (LACORS) so that this
guidance can be passed on to other Councils. In some areas, this may mean a
significant increase in the number of flats in multiple occupation requiring a licence.”
The Council’s Portfolio holder for Community Services Cllr Sir Edward Horsfall said:
“The case will serve as a strong warning to other landlords that may be renting out
property without a licence.
“The licensing system is there to protect tenants’ health and safety and ensure
property is well managed and safe to live in. The licence conditions also guard
against overcrowding and anti-social behaviour which can sometimes be a problem
to neighbours, where accommodation is rented to a number of people sharing.”
Cotswold District Council is seeking out property that requires a licence and has a
programme of inspections to ensure that all standards are met. Any landlord who is
letting accommodation in a three-storey building to five or more tenants, without a
licence, is advised to contact the Council immediately.
The Council will help landlords with their application and provide advice on the
licensing conditions. In some cases, it may be possible to grant a short-term
exemption. subject to the Council’s discretion.
Notes to editors: Under the Housing Act 2004 property that is three storeys or more
and is or contains accommodation shared by five or more people shall have a
mandatory licence. This type of property is termed house or flat in multiple
occupation.
Landlords must apply to the Council for an application pack or visit the Council’s
website for further details on www.cotswold.gov.uk Licences are granted subject to
national conditions relating to the provision of amenities, fire safety and standards of
management. The Council has currently licensed nine premises in the Cotswold
District.’
This apparently clarifies matters and will lead to local Boroughs amending legislation shortly. However, I must say, this leaves us now more confused on what we thought was quite simple criteria. In reality Court Cases like this are still rare and as long as you are maintaining your properties well and caring for your tenants’ needs this should be a rare situation to find yourself in. However, should this now raise any uncertainty as to whether or not this legislation applies to you contact the local Borough for the property in question. Whatever thie response make sure you keep notes of who you spoke to, in what department along with what was said and when- this may prove vital in the future. This confusing and clumsy legislation has scared many house owners into selling in London and has, as such, worsened the ongoing ‘drought’ of 3+ bedroom rental properties on the London rental market which are constantly in high demand. Lets just hope, sooner or later, someone takkes responsibility to tighten up this legislation so everything is more clear as matters are only complicated at present by the fact that each Borough is allowed to enforce this legislation according to their own set of Terms and Conditions.
