Local Expertise

Additional Licensing Scheme (HMOs)

Facebook
Twitter
LinkedIn
Pinterest
WhatsApp

Everything You Need to Know About Additional Licensing for HMOs

Licensing for HMOs

There are several intricate local council rules and regulations that apply to homeowners and landlords in particular. One of these complex norms is landlord licensing. To save you time and the hassle of reviewing detailed legislation, we’ve put together a comprehensive guide to additional licensing.

As of 2019, the majority of London Boroughs have started applying additional licensing schemes. Our letting estate agents are well aware that these new regulations have made landlords feel worried and have got them struggling to understand if and how they are affected by these changes. Read on to find out everything you need to know about additional licensing.

What Is An Additional Licensing Scheme?

According to Part II of the Housing Act 2004, each council is allowed to introduce additional licensing schemes to HMOs (Houses in Multiple Occupation) that are not included in the scope of the mandatory HMO licensing scheme.

An additional licensing scheme can be introduced by a local council if a substantial percentage of HMOs in their jurisdiction are ill-managed. Councils make these decisions due to the fact that improperly managed HMOs can create issues that affect both the tenants and the members of the public.

According to applicable law, local councils may take such decisions for implementing additional licensing schemes only in support of their general housing strategy. Before introducing such a scheme, the council must deliberate and reach the conclusion that this is the only possible course of action. And that introducing an additional licensing scheme will help the council combat community issues such as abandoned properties and homelessness or anti-social behaviour.

In order for an additional licensing scheme to be implemented, it must meet all the requirements of the Housing Act 2004. In addition, anyone who will be affected by the scheme must be consulted over a period of at least 10 weeks.

Does the Additional Licensing Scheme Apply To Me?

7_good_reason

To answer this question, you must first determine whether or not your property is defined as an HMO.

The Government website says that if your property is let out to “several tenants who are not members of the same family”, it may fall under the definition of ‘House in Multiple Occupation’ (HMO).

An HMO is a property, be it a house or a flat, that hosts at least 3 tenants who form more than one household and share facilities such as the toilet, bathroom, or kitchen. For the purposes of this definition, a household is considered to be either a single person or several members of the same family who live together.

When it is occupied by 5 or more people, an HMO must hold a licence. In addition, local councils can decide to introduce other types of licensing referred to as additional licensing.

If you’ve determined that your property is an HMO, you must now determine whether or not the borough where the property is located has any additional licensing schemes in force.

Different councils can have different schemes and some may not even apply to the entire borough, but to certain areas. For instance, the Tower Hamlets additional licensing scheme does not apply to properties included in the Selective Licensing areas of Spitlafields and Banglatown, Weavers, and Whitechapel. To fall under the additional licensing scheme, the property must have 3 or more tenants living as 2 or more households. Furthermore, out of the minimum three tenants, at least one person must be paying rent.

In Newham, the Council has decided that all HMOs fall under the requirements of the additional licensing scheme with only a few statutory exemptions. In Hounslow, the additional licensing scheme only applies to properties that are 2 or more storeys high and occupied by four or more people in two or more households.

How Do I Find Out If My Local Council Introduced an Additional Licensing Scheme?

van-tay-media-TFFn3BYLc5s-unsplash

Ideally, there would be one centralized database for all additional licensing introduced in each of the London boroughs. Unfortunately, no such central directory has been created until now.

To find out if an additional licensing scheme is in effect in your borough or for your property, you will need to check with your local council by phone or on their website.

Are There Any Exemptions from Additional Licensing Schemes?

Depending on the borough where the property is located, different exemptions may apply. However, some statutory exemptions apply across all boroughs.

These exceptions are:

  • HMO properties that are already required to hold a licence according to the mandatory HMO licensing scheme;
  • Properties occupied by the owner and no more than two additional lodgers;
  • HMOs occupied by only two tenants who form two households;
  • Properties in which management has been taken over by the council. This can happen subject to an Interim or Final Management Order as per Part 4 of the Housing Act 2004;
  • Properties occupied by a religious community whose primary purpose is prayer, education, contemplation, or relief of suffering;
  • Any property that is under a temporary exemption notice;
  • Any property that is exempt for being a student hall of residence;
  • If the property is managed by either a local housing authority or a registered social landlord. It can also be managed by police, fire & rescue authorities, or health service bodies;
  • Properties that are already regulated according to certain other statutory provisions (such as Schedule 1 to SI 2006 Number 373)

If you want to know more about how additional licensing schemes can affect you and your property, contact our lettings estate agents today.

5/5 - (527 votes)

Our Agents

Estate Agents Qaiser

Qaiser Masood

Estate Agents Rizwan

Rizwan Ashraf

What Our Customer's Say

Samarpan Thorat
Samarpan Thorat
2022-02-18
They have multiple options.
Lana Matta
Lana Matta
2022-02-01
Exceptional service! Always on time and proactive!
Adetola Ajala
Adetola Ajala
2022-01-24
From just a walk in to prompt service delivery. Adil took time to explain about property market and was very professional in every aspect of negotiation and final house letting process. So far property management has been satisfactory.
Amit Bains
Amit Bains
2021-12-10
I chose REMAX and Adil specifically to manage my property in the Canning Town area because I could tell the enthusiasm and customer service levels were extremely high. I have not been disappointed given the current market and global situation over the past year and more I could not have asked for a more attentive agent then Adil and the wider REMAX team
Adnans Syed
Adnans Syed
2021-12-06
Remax barking is best agents Mr Adil is best Man to deal with we take House From Mr Adil in 2018 now in 2021 we are moving From house But There service is very professional and decent I moving my house but in many years no problem with them regarding anything I live in U.K. since 15 years but this is the best agency we had if you guys be with remax barking road you never be a disappointed that’s for sure great service see you in future Mr Adil thanks for you kind service god bless you 🙏
Thunicia Moodley
Thunicia Moodley
2021-11-28
I approached REMAX after being dissatisfied with another agent in the area, who was very poorly responsive, negligent with our property, & unable to rent it out for 3 months. From the first interaction, Adil was highly responsive, provided advice on what was required to bring the property back up to standard, and swiftly obtained quotes for all work that needed to be carried out. REMAX oversaw completion of the extensive work & secured tenants in approximately 4 weeks. I initially contacted REMAX, amongst other agents, due to their high Google ratings. Based on my own experience, I rate the level of customer service & professionalism 5 star. Thank you Adil & Team.
Anam Asghar
Anam Asghar
2021-11-27
Excellent Customer Service and prompt action been taken when finding property for my self… Highly Recommended 👍🏻
Nitu Mariana
Nitu Mariana
2021-11-17
I have just secured a new apartment using the REMAX Canning Town Branch, and during the whole process, Mr Masood Qaiser was very helpful. I contacted him through Facebook regarding the available property. He was very professional, good communicator. Patient and reliable. Explained all the processes and followed up with emails and calls, which helped put my mind at ease and helped me throughout the whole process, making the process smooth and easy. Even he helped me with switching the bills. So I very much recommend this agency. I had a positive experience with them.
Martin Parvanov
Martin Parvanov
2021-11-15
I saw so many properties to rent in Facebook . You have so many advertises and when I ask Julian if they are still available He doesn't reply to me. Even not only him ..There is another guy I can't remember his name and he doesn't answered on my messages as well. This is the reason to give you only one star
Saugat Budhathoki
Saugat Budhathoki
2021-11-11
I've used Remax Canning Town Branch for Letting my apartment in Rathborne Market. Mr Rizwan is reliable and goes the extra mile to help and secure the professional tenants as I wanted. On top of his knowledge and experience, Rizwan is kind and personable, a pleasure to work with him, and I recommend REMAX wholeheartedly.

Are you looking to

We need to know if you require a Sales or Lettings valuation to provide you with the right local expertise.