Liverpool City Council - FAQ

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 Mandatory HMO licensing FAQ

What is an HMO?

The following property types may be HMOs:

Also, in order to be an HMO, the property must be used as the tenants' only or main residence.  Properties let to students and migrant workers will be treated as their only or main residence and the same will apply to properties which are used as domestic refuges or for other purposes prescribed by the government.



What is a household?

The following are 'households' for the purposes of the Housing Act 2004:

Members of the same family living together including:

Therefore, three unrelated friends sharing together are considered to be three households.  A couple sharing with a third unrelated person would constitute two households.  A family renting a property is a single household.  If that family had an au pair to look after their children that person would be included in their household.



Do all HMOs have to be licensed?

No. Only those HMOs that are subject to Mandatory Licensing, which satisy the following:



I have read that there are other types of licensing what properties do these apply?

Under the Housing Act 2004 there are three types of licensing:

1.  Mandatory (required by law) licensing of HMOs for properties that are:

2.  Additional licensing of HMOs

A discretionary power that councils may decide to apply to a particular type of HMO, for example, two-storey properties occupied by three or more students or asylum seekers. The City Council will decide whether or not to introduce additional HMO licensing in the future.

3. Selective licensing of other residential accommodation

Properties that are not subject to HMO licensing could be covered under a selective licensing scheme. This is where the council may declare that certain areas, for example, where there is low demand for housing and/or antisocial behaviour, are appropriate for selective licensing. This licensing would cover all forms of private rented housing, including HMOs. It is most likely that at first councils will only introduce licences for HMOs that fall into the first group. They may introduce the other two types of licensing later.

At present, Liverpool City Council is introducing only mandatory licensing.



When did the licensing come into force?

6th April, 2006



Who can apply for a license?

The most appropriate person must apply.  That can be either the owner or a managing agent - with their agreement - but it is likely to be the person who receives the rent for the property.

If, for instance, the applicant cannot declare themselves to be a fit and proper person, then they can and should seek out another person, such as a managing agent, to apply for the licence on their behalf.



What does a 'fit and proper person' mean?

The Applicant will need to satisfy the Council that they are fit and proper to hold a licence. In deciding whether someone is fit and proper the council must take into account:

If an applicant does not meet the criteria for fit and proper they are unlikely to obtain a Licence. However, they can get someone else such as a Managing Agent to hold the Licence on their behalf.

It is also advisable for the landlord or manager to be a member of a professionally recognised body, or an approved landlords association that is affiliated to the National Federation of Residential Landlords. 



When do I need to get a licence by?

If you let an HMO that requires to be licensed you can make an application from April 6th 2006. 

From July 3rd 2006 all liable HMO landlords must licence their premises.  If you haven't applied for a licence you may face enforcement measures, including repayment of housing benefits or your tenant may claim rent that has been paid. However, the City Council is offering discounts on fees until the 2nd October to enable responsible landlords with vacant properties e.g. student lets, to also be eligible for a discount. 

After the 2nd October if a property should be licensed and is not, you will be liable for prosecution. This may result in Fines of up to £20,000, losing the right to manage your properties and repayments of rents or housing Benefits.



Would a two storey house occupied by six students be liable for licensing?

No. To be licensed a property must comprise at least 3 storeys and be occupied by 5 or more persons.



Is a basement or an attic classed as a storey?

Attics or basements count as storeys if they:-

Commercial premises on the ground or any upper floor will also be included in the calculation of number of storeys, but not basements in purely commercial use. 

Cases involving the de-commissioning of attics and cellars will need to be discussed on an individual basis.



Is a mezzanine floor classed as a storey?

Yes - if it is used either wholly or mainly as living accommodation, e.g. bedroom, bathroom, toilet, laundry facility, storage, boiler or meter position.



Would a purpose-built 3-storey building consisting entirely of self-contained flats be liable for licensing?

At the moment the Council consider that the building itself would not be subject to mandatory licensing but,  any one of the individual flats that is occupied by 5 or more persons, forming 2 or more households, who share amenities could be  subject to Licensing.

There is currently a debate over what floors are taken into account in calculating the number of storeys. Because of the differences in interpretation, the Council has referred the matter to its Legal Services for their opinion. If you own or manage a property which may be affected you are strongly advised to return to this site for updates. Once we receive Legal Services' opinion, we will update the web site immediately and frequently asked questions.

Notwithstanding the above, these flats together with those in converted blocks may be subject to Additional or Selective Licensing in the future.

Self-contained flats in converted blocks are also currently exempted by the government.



Would a converted house consisting entirely of self-contained flats be liable for licensing?

No - at present self-contained flats in converted blocks are exempted by the government. However, if an individual flat comprises three or more storeys AND is occupied by five or more people in more than one household who  share amenities then the individual flat would need to be licensed. 

There is currently a debate over what floors are taken into account in calculating the number of storeys. Because of the differences in interpretation, the Council has referred the matter to its Legal Services for their opinion. If you own or manage a property which may be affected you are strongly advised to return to this site for updates. Once we receive Legal Services' opinion, we will update the web site and frequently asked questions.

Notwithstanding the above debate they may be subject to Additional or Selective Licensing in the future.



Why does the government want HMOs to be licensed?

Larger HMOs, such as bedsits and shared houses, often have poorer physical and management standards than other privately rented properties. The people who live in HMOs are amongst the most vulnerable and disadvantaged members of society. As HMOs are the only housing option for many people, the government recognises that it is vital that they are properly regulated. 

Licensing is intended to make sure that:

Where landlords refuse to meet these criteria the council can intervene and manage the property so that:



How significant is the HMO problem in Liverpool?

Firstly, there is a substantial student population living here, estimated to be over 50,000, many of them living in licensable HMOs.

Secondly, other statistics such as the rate of youth unemployment in the City which is 7%, compared to the national rate of 2.6%, also point to the existence of significant numbers of vulnerable people living in our HMOs.

Thirdly, if you live in a HMO you are 15 times more likely to be seriously injured in a fire, compared to any other tenure.



What are the requirements for obtaining a licence?

The licence-holder must be a fit and proper person and the premises must be capable of being licensed.



What are the conditions that may be attached to the licence?

The licence will specify the maximum number of people who may live in the HMO and there are certain mandatory conditions that will be applied:

In addition the Council may also apply the following conditions:



Will the licence specify the number of people who can live in the property?

Yes.



How long will it last?

A licence will normally last for one year and will be renewed annually.



How much will it cost?

Landlords will have to pay an annual fee to cover the administration costs of the licence procedure. Fees have recently been updated and will appear here in the near future. Should you wish to make further enquiries please contact steve.morris@liverpool.gov.uk.



Is the Council offering discounts?

To encourage landlords to be responsible and to reward those who are, the Council is offering substantial discounts to those landlords whose properties are accredited under the 'CLASS' scheme. Fees and discounts are currently unavailable. If you wish to discuss this further please contact steve.morris@liverpool.gov.uk



Can the council refuse to give a licence?

Yes - but only if the licence-holder is not a fit and proper person or the premises are not capable of being licensed.

see also What are the required conditions for obtaining a licence?



What will happen next if the council refuse to licence my property?

If a landlord fails to bring an HMO up to the required standard, or fails to meet the fit and proper person criteria, the council can issue an Interim Management Order (IMO), which allows it to step in and manage the property. This order can last for a year until suitable permanent management arrangements can be made. If the IMO expires and there has been no improvement, then the council can issue a Final Management Order. This can last up to five years and can be renewed.



Can the Council revoke a Licence?

If a landlord fails to bring an HMO up to the required standard, or fails to meet the fit and proper person criteria, the council can revoke the licence and issue an Interim Management Order (IMO), see above.



Can I appeal against the refusal of a licence?

You may appeal if the council decides to:

You must appeal to the Residential Property Tribunal, normally within 28 days.

Details of how to appeal will be available soon.



What is "temporary exemption from licensing"?

If a landlord or person in control of a property intends to stop operating it as a HMO, or reduces the numbers of occupants to below the licensing threshold, and can give clear evidence of this, then application can be made for a  Temporary Exemption Notice. This lasts for a maximum of three months and ensures that a property in the process of being converted from an HMO does not need to be licensed. If the situation is not resolved, then in exceptional circumstances a second and final Temporary Exemption Notice can be considered. When this runs out the property must be licensed, become subject to an Interim Management Order, or cease to be a licensable HMO.



What are rent repayment orders?

A tenant living in a property that should have been licensed, but was not, can apply to the Residential Property Tribunal to claim back any rent they have paid during the unlicensed period (up to a limit of 12 months).  The Council can also reclaim any housing benefit that has been paid during the time the property was without a licence.



Are there any other penalties?

It is an offence if the landlord or person in control of the property:

A fine of up to £20,000 may be imposed. In addition, breaking any of the licence conditions can result in fines of up to £5,000.

An unlicensed landlord cannot use a section 21 notice to gain possession of his property at the end of the tenancy.



What work do I have to do to make a property comply for licensing?

Firstly, the property must be licensed, whether or not it complies with the council's standards, and a licence can only be refused on the grounds given in the answer to Can the council refuse to give a licence? However, where a property fails to comply with standards, conditions will be attached to the licence to require the property to be brought up to standard.  

The Council's standards are currently being produced, and will be available on request (0151 233 3018) and will be posted on the City Council Website soon.



I have a property in Kensington registered under the Kensington Scheme. What effect does licensing have on this property?

The Registration Scheme will be in force until April 5th, 2006 and we will continue to pursue all those who have not registered. This is to ensure fairness to those who have paid. Landlords who have registered a licensable property will have the registration fee deducted from the licence fee for 2006/7 only.  Unfortunately we will not be able to refund fees for premises that do not require licensing.



What is a "self-contained flat"?

A unit of accommodation is a self-contained flat if it has all 3 basic amenities, i.e. a kitchen (or cooking area), bathroom and toilet available for the exclusive use of the occupants.



What happens if a property of mine becomes licensable because of a change in the make-up of the household which occurs without my knowledge? For example if a tenant's partner moves in bringing the total number to five?

A landlord commits an offence if he knowingly lets a property to more people than it is licensed to hold.  In the interests of good management standards you should be aware of who is living in your property at all times. If you are aware that people other than the tenant are in occupation, or if you are accepting rent from the additional occupants (whether or not you know they are tenants) this could be taken to mean that you know that they are living in the property. 

If guests come to stay with the tenant then, provided that they are staying there as short-term guests and are not paying rent and using the property as their main or only residence, they will not count towards the number of occupants. See also Number 26 temporary exemption from licensing



What happens if I wish to sell my property on as an HMO?

Licences are not transferable to another person or property and fees are not refundable.  If you wish to sell your property then the new landlord would need to apply for a new licence.



What would happen to my tenants if I decided to convert an HMO into a single dwelling or reduce the number of occupants to below the licensing threshold?

You may not unlawfully evict your current tenants in order to avoid licensing or return the property to a single dwelling.  If you attempt to do so, then you may no longer be considered a 'fit and proper person' and not entiltled to hold a licence. In these cases the Council may apply for a management order to take over management of your property.  You may reduce numbers through natural decline provided that your HMO is not one which requires planning permission.



Will I have to evict tenants to make sure that my property is not housing more than the licence allows?

Landlords may not evict existing tenants to avoid licensing or to comply with the maximum number of occupants allowed in the property. It is considered reasonable that the tenants were in occupation at the time the licence was granted and landlords will not be penalised. However, when the tenancy comes to an end, landlords or agents will be committing an offence if new tenants are allowed to move in bringing the total occupants above the maximum number permitted under the licence.



Will HMO licensing be used to hold landlords responsible for tenants' anti-social behaviour?

As a licensed landlord it will be your duty to take reasonable steps to ensure that tenants are not causing problems within the boundaries of the property through anti-social behaviour. We envisage for example, if the landlord has a complaint from a neighbour about loud music late at night or rubbish left lying around the property, it would be the responsibility of the landlord to talk to the tenants and work with other agencies, such as the Council, to try to resolve any problems.  If the local housing authority sets a condition on the licence about anti-social behaviour it will be expected to work closely with landlords to combat the problem.

If you report anti-social behaviour to the appropriate authority but that authority then chooses not to act, or takes only limited action, you will be deemed to have taken appropriate action and should not be considered to have breached the conditions of your licence.



Isn't this just another way of council's raising more money?

Local authorities can only charge for certain licensing functions. They will only be allowed to use licence fees to recover the costs of licensing and not to raise monies to fund other projects.



Is there an ombudsman I can appeal to about the charges or any other aspect of licensing?

Yes. In general appeals against licensing decisions by the local housing authority will be heard by a Residential Property Tribunal.  The local housing authority will have to send you details of your right to appeal with all notices of their decisions.



My property is used mainly for other residential purposes. I only let a part of it to tenants. Is it an HMO and do I have to get a licence?

If a property is partly lived in by tenants as their main, or only, residence, but is also used for other purposes the building may be classed as an HMO if the council is satisfied that the more permanent tenants are making significant use of the building. Examples of this would include:

If the council classes your property as an HMO and it meets the criteria for licensing, you will have to apply for a licence. You have the right to appeal against the decision to classify the property as an HMO.



Is a block of self-contained flats an HMO?

A purpose built block of self-contained flats is not an HMO and will not be subject to mandatory licensing but could be subject to additional licensing if the council chooses to introduce a scheme locally.  However, an individual flat within it might be licensable.



Are properties converted into self-contained flats subject to licensing?

At present properties consisting only of self-contained flats within a converted block are not subject to licensing. However, the Government may include these properties in the future. The Council could also choose to Include them under additional licensing powers.
 
An individual flat within the building may aslo be licensable. 

If the property has been converted entirely into self-contained flats, the conversion will be regarded by the Council as an HMO if it does not comply with the Building Regulations made in 1991, and if more than one third of the flats are let out on short leases. A Completion Certificate will be required in order to determine whether or not a property complies.



Are there any other links on the internet that I can go to for information on licensing?

Yes,

You can visit the following websites:

Liverpool City Council:
www.liverpool.gov.uk/Housing/Housing_advice/index.asp 

Government:
www.odpm.gov.uk    
www.idea.gov.uk
www.propertylicence.gov.uk

Local Government:
www.lga.gov.uk

Landlord Web sites
www.nwpoa.co.uk
www.landlords.org.uk

Other local Authorities can normally be accessed by adding their name to        .gov.uk 

www.knowsley.gov.uk
www.sefton.gov.uk
www.sthelens.gov.uk
www.wirral.gov.uk
www.landlordinfo.co.uk

Others 

www.nationalhmonetwork.com 



I understand that some premises are exempted from licensing

A building is not a HMO where the person  managing or having control of it is a:

and therefore is exempt



I do not understand what is going on is there someone I can talk to?

Yes there is. You can Contact LDL on 0151 233 3018.  They will take your details and forward them to Environmental Health who will phone you back (normally within  5 working days)



How do I get an application form?

You can get an application form (pdf file) together with other information on Licensing from our web site address:

www.liverpool.gov.uk/Housing/Housing_advice/index.asp 

you can also contact us by Email at environmental.health@liverpool.gov.uk

Or Telephone  on    0151 233 3018

Or apply in writing to: Urban Improvements, HMO Licensing, Environmental Health & Trading Standards, Regeneration, Municipal Buildings, Dale Street, Liverpool L2 2DH



How can I apply to become an Accredited Landlord?

If you would like to know more about the Landlord Accreditation Scheme and how to apply, either:



What happens if I do not licence my property?

It is a criminal offence if you fail to apply for an HMO licence for a property that is subject to licensing and may result in one or all of the following legal actions being taken: