The Government has introduced a scheme for the compulsory licensing of all larger HMOs in the Housing Act 2004.  As of 6th April 2006, all landlords and property agents who let large houses in multiple occupation need to apply for an HMO licence.  From 6th July 2006 landlords and agents who fail to apply for a licence may face fines of up to £20,000, a criminal record and potentially rent repayment orders.

Anyone who owns or manages an HMO that must be licensed has to apply to the Local Authority for a Licence.  The Local Authority must give a Licence if it is satisfied that:

1. The HMO is reasonably suitable for occupation by the number of people allowed under the proposed licence.
2. The proposed Licence holder is a "fit & proper person" 
3. The proposed Licence holder is the most appropriate person to hold the Licence.
4. The proposed manager, if there is one, is a "fit & proper person"
5. The proposed management arrangements are satisfactory.
6. The person involved in the management of the HMO is competent.
7. The financial structures for the management are suitable.

A fee will be charged

The Council can refuse to issue a Licence if any of the above requirements are not met.

Landlords can appeal against decisions by the Council to refuse a licence, to attach conditions to a Licence, to revoke a Licence, to vary a Licence, or to refuse to vary a licence.

Trade Associations