House in Multiple Occupation (HMO) Policy

This House in Multiple Occupation (HMO) policy describes the Council's approach to dealing with HMOs, outlining the key elements and methods of implementing the policy. It is not intended to provide a full breakdown of standards and other policies and should be read in conjunction with other Private Sector Housing documents including the Stockton-on-Tees Borough Council; Amenity Guidance, Guide to Fire Safety, Enforcement and Regulatory Policy for Private Sector Housing and the HMO Licensing Policy.

Further information may be obtained by contacting the Private Sector Housing Team directly.

A House in Multiple Occupation is defined in Section 254 of the Housing Act 2004 and can be described as "a building or part of a building which is occupied by 3 or more unrelated persons forming more than one household and in which more than one household shares an amenity (or the building lacks an amenity) such as a bathroom, toilet or cooking facilities".

The definition of a HMO encompasses buildings that are occupied as bedsits, hostels, shared houses and sometimes bed and breakfast accommodation that is a person's only or main residence. It can in certain circumstances include households that offer rooms to lodgers who share the other household facilities, (For a house let to lodgers to be classed as a HMO there must be a resident landlord and 3 or more lodgers sharing facilities).

Following the change in the definition of a HMO which was introduced by the Housing Act 2004 it is possible that 'new' HMOs have been brought about by people sharing houses in groups, people such as students, professional working people, and migrant workers.

With effect from 1 October 2018 Mandatory Licensing of HMOs will no longer be limited to certain HMOs that are three or more storeys high, but, will now include buildings with one or two storeys having 5 or more occupants living in 2 or more households who share facilities i.e. kitchen, bathroom will require a licence.

Certain types of properties are exempted from being defined as HMOs and these include:

1. A property where the landlord and their household lives with up to two tenants.
2. Buildings which are occupied entirely by freeholders or long leaseholders.
3. Buildings which are owned or managed by a public body (such as the NHS or police), a local Housing authority or a registered social landlord.
4. Building where the residential accommodation is ancillary to the main use of the building, for example, religious buildings, conference centres etc.
5. Buildings which are already regulated (and where the description of the building is specified in regulations), such as care homes, bail hostels etc. (Domestic refuges are not exempt).

Houses in Multiple Occupation (HMOs) in Stockton-on-Tees provide a useful and essential source of housing within the private rented sector. The occupants of HMOs are sometimes amongst the most vulnerable and disadvantaged members of our society, and, providing safe, secure and affordable, accessible housing will positively contribute to their health and well-being.

However, poor standards of management, high levels of disrepair, overcrowding, poor fire safety and lack of facilities within HMOs can seriously impact on the health and well-being of occupants. The role of the local authority is to ensure that appropriate inspections of HMOs are undertaken to ensure proper standards are maintained and that disrepair issues are identified and resolved quickly.

The local authority works closely with the occupants and private landlords/managing agents to maintain positive relationships, providing advice and assistance. Equally though, when all other resolution avenues have been explored, the local authority can use enforcement powers to address any noncompliance issues.

Generally HMOs can be placed into one of the following categories each of which has its own standards that have to be met:

The Council also have to apply the standards to Flats which are in multiple occupation, and properties converted entirely into self-contained flats which do not comply with Building Regulations.

The Council works collaboratively in partnership with other local authorities within the Tees Valley sub-region as well as regionally in the North East. Tees Valley sub-regional partners have produced Amenity Standards and Fire Safety Guidance. Amenity Standards, minimum room sizes and Fire Safety Guidance have been devised and produced by both taking a local approach to raising standards and by including the national minimum standards contained in Statutory Instrument 373/2006, as amended by Statutory Instrument 1903/2007.

The Council has also given due consideration, and adopted guidance and advice, issued by the Chartered Institute of Environmental Health, the Local Government Regulation group and other relevant professional bodies. The standards are designed and agreed to provide an element of professional discretion as individual HMOs are assessed and evaluated by specialist Officers.

National and local amenity standards only apply to HMOs that need to be licensed. In non-licensable HMOs, amenities are regulated where appropriate through the Housing Health and Safety Rating System (HHSRS). However, the Amenity Standards and Guide to Fire Safety will also assist landlords of non-licensable HMOs by providing a guide as to the level of amenities and facilities that will be deemed to be acceptable in non-licensable HMOs when assessed under the HHSRS.

Having the standards agreed on a sub-regional basis promotes greater consistency and aims to make it easier for landlords who may operate HMOs in more than one local authority area. Read the [LINK]Amenity Standards and [LINK]Guide to Fire Safety

The Amenity Standards and Guide to Fire Safety are subject to revision and will be amended to reflect any new guidance or legislative changes.

Competent and well organised management is crucial to running a safe and successful house in multiple occupation.

A person managing a HMO has a legal obligation under the Housing Act 2004 and in accordance with The Management of Houses in Multiple Occupation (England) Regulations 2006 and the Licensing and Management of Houses in Multiple Occupation Regulations 2007 to ensure that the property is maintained in good condition to enable the tenants to live safely and also comfortably.

Below is a summary of the Regulations, which place a duty on the person, managing a HMO to undertake that management properly. Failure to comply with these Regulations is an offence. 

Display notices

A manager must display in a prominent position a notice containing details of their name, address and any telephone contact number.

Take safety measures

All means of escape from fire must be kept clear and free from obstruction, all fire prevention and warning systems along with fire-fighting equipment must be maintained in good working order.

Water supply and drainage

The need for the installation of water fittings and uninterrupted supplies of water and adequate drainage for the disposal of waste water.

The supply of gas and electricity

The supply of gas and electricity must not be interrupted and upon request from the Local Authority the manager must supply a gas safety record certificate within 7 days of that request.

Maintenance of common parts and installations

This is very wide ranging and relates to the repair and cleanliness of items which have shared use such as toilets, baths, sinks, wash hand basins, cookers, fridges. It also relates to common areas and contents such as handrails, banisters, boundary walls, fences and yards being kept in a good order.

Living accommodation

Relates to the repair and maintenance of a tenants unit of accommodation and including any fittings therein.

Refuse disposal

The need for sufficient bins or other receptacles for storing refuse and for the arrangements for the disposal of refuse.

Under Section 239 of the Housing Act 2004 the Council are not required to give notice of an intended entry where they suspect a non-compliant HMO, and, a person authorised by the Council may enter the premise at any reasonable time, without giving notice, to determine if the Regulations have been met.

In instances where the Regulations have not been met, the Private Sector Housing Team will give full consideration to the most appropriate course of action. The Council may look to work informally with the landlord (agent) and resident to resolve any non-compliance matters successfully. However, if a breach is serious or a non-compliance issue remains outstanding and unresolved, the Council may elect to commence legal proceedings or impose a Civil Penalty without a requirement for further notice.

The Council has a statutory duty to improve standards and has numerous powers to deal with complaints from tenants living in HMOs. The Council uses its statutory powers to ensure that landlords and managers keep properties up to an acceptable standard by carrying out both pro-active and reactive work ranging from responding to Requests for Service from occupants in HMOs to identifying and risk assessing HMOs.

Housing standards within HMOs are monitored and reported through; HHSRS inspections, HMO Licensing and HMO Management Regulation Inspections.

A database of known and potential HMOs are collected from a variety of sources and this provides the basis for prioritising future Private Sector Housing Team actions.

All actions in relation to proactive or reactive inspections will be undertaken in accordance with the Enforcement and Regulatory Policy for Private Sector Housing. As a Local Authority, Stockton-on-Tees Borough Council complies with the Regulators Compliance Code: Statutory Code of Practice for Regulators. The Corporate Regulatory Services Enforcement Policy commits all Council services to following fair, effective and consistent policies and procedures.

Reactive work

On a reactive basis we will respond to complaints and concerns (Requests for Service) from tenants, residents, other Council service areas or external agencies about housing conditions. Requests for Service with reference to reactive work will be responded to in the following agreed timescales:

When unsatisfactory conditions are reported within HMOs, in the first instance we may seek to remedy the unsatisfactory conditions in an informal manner. This will normally take the form of an informal letter advising the person responsible of what the issues are and what action they need to take to address these problems. Should the informal route be pursued with little or no success, then formal action will be considered.

If co-operation cannot be obtained within specific timescales then the Council will use its legislative powers to ensure that properties are brought up to standard. Full details of our actions in obtaining satisfactory remedies to situations are contained in the Enforcement and Regulatory Policy for Private Sector Housing.

Additional circumstances in which, Private Sector Housing would not wish to delay commencement of formal enforcement action are likely to arise when it is considered:

• there is a high risk to the health and safety of the occupant(s) or adjoining neighbours
• where a landlord has a history of not complying with informal requests to undertake work
• where a landlord has a history of non-compliance with statutory notices
• where there has been a breach of management regulations

Private Sector Housing will also respond to requests from Cleveland Fire Brigade with reference to unsafe conditions. These requests usually relate to unsafe means of escape in case of fire. When the Council becomes aware of an imminent safety risk to the occupiers, it will work alongside Cleveland Fire Brigade in accordance with the agreed protocol to decide who will take the lead role in determining the most appropriate course of action which may include prohibiting use of the property or part of the property.

The flowchart at Appendix 1 shows the procedure adopted by Private Section Housing to bring about improvements in sub-standard accommodation following a Request for Service.

Pro-active work

The pro-active work that Private Sector Housing will undertake includes:

Risk Assessments

Risk assessments are carried out on both newly identified and known HMOs. The risk assessments are used to identify the number and types of HMOs and to prioritise our work so that conditions in the highest risk premises are dealt with first. The risk assessment process will also determine which HMOs will receive proactive inspections to ensure they comply with our standards.

HMO Management Regulation Inspections

Effective management is key to running a safe House in Multiple Occupation and the Private Sector Housing team undertakes inspections of HMOs to ensure that the properties are properly managed and that they comply with The Management of Houses in Multiple Occupation (England) Regulations 2006 and the Licensing and Management of Houses in Multiple Occupation Regulations 2007. The inspections will look at conditions in relation to repair, maintenance and the cleanliness of the property.

Mandatory Licensing of Houses in Multiple Occupation

In accordance with the provisions contained within the Housing Act 2004, the Council operate a Mandatory HMO Licensing scheme. The scheme places a requirement on landlords who operate certain HMOs that are occupied by 5 or more persons, who make up 2 or more households to ensure that they are licensed by the Council.

Licences are valid for a maximum of 5 years and are renewable. A licence will specify the maximum number of occupants and households for which the property is suitable and will have certain conditions attached. A licence is not transferable and it is an offence to operate a licensable HMO without a licence or to allow the HMO to be occupied by more people or households than specified in the licence.

HMO Licence fees are as follows:

The Housing Act 2004 allows the Council to charge a fee for licensing HMOs. The current fees are as follows; £250 per unit of accommodation (discounted to £200 per unit of accommodation for members of the Council's Landlord Accreditation Scheme). Once a licence application has been submitted, and a fee paid, the application fee is non-refundable.

Failure to obtain a licence for a HMO, which is required to be licensed means that the person responsible can get an unlimited fine upon conviction or maybe subject a Civil Penalty of up to £30,000. In addition, the Council or the tenants (including former tenants) living at the property whilst it was unlicensed may apply to the First-tier Tribunal (Property Chamber) (FTT) for a Rent Repayment Order (RRO) to reclaim up to 12 months' rent from the landlord.

It is also an offence to breach any of the conditions attached to the licence and the person responsible for allowing any breach of the conditions may get a fine of up to £5,000 for each breach upon conviction or maybe subject a Civil Penalty of up to £30,000. For further information, please refer to the Enforcement Policy.

Planning and Building Control Applications

When Planning or Building Control applications have been submitted to the Council for new HMOs or conversions of existing HMOs, Private Sector Housing will make the Landlord and all relevant partners aware of any relevant requirements or potential problems.

The responsibility and delegated authority to improve conditions within HMOs rests with Private Sector Housing. There are several other Council departments and external bodies that also have an important, direct or indirect role to play in both providing accommodation along with issuing and ensuring standards. We consult with these partners in several ways:

Consultation with the Fire Authority

There is a duty to consult with Cleveland Fire Brigade on certain fire safety matters and action any requirements in relation to means of escape from fire.

Housing Neighbourhood and Affordable Warmth Partnership

Landlords providing accommodation within the Borough are invited to the Partnership to discuss relevant information, changing legislation, good practice and to share views on improvements.

Tees Valley Housing Enforcement Group

The group set up between the five Tees Valley Local Authorities meets to discuss a variety of matters and to jointly develop standards across the sub region. The group is responsible for working with Cleveland Fire Brigade in relation to fire safety for HMOs. The standards are reviewed on a regular basis to ensure that they incorporate any new legislation or good practice.

A protocol between the five Local Authorities and Cleveland Fire Brigade has been agreed and introduced. The protocol identifies who will take the lead role in determining the most appropriate course of action when unacceptable conditions are found in HMOs.

North East Private Sector Housing Group

The group meets on a quarterly basis across the region to share and develop good practice and respond to the changing private sector environment, including consultation and implementation of any legislative changes. Training needs of partners are identified and delivered jointly.

Landlord Forums

Private Sector Housing participate in a private landlord's forum in partnership with the other Tees Valley local authorities designed to inform and strengthen partnership working with private sector landlords.

Private Sector Housing operate a Landlord Accreditation Scheme. The scheme is one of a range of tools that the Council have available to support and improve the private rented sector. The Scheme offers benefits to members such as direct advice from a Housing Officer, a Bond Guarantee Scheme and assistance in resolving anti-social behaviour issues.

Accredited Landlords are eligible for a £50 discount per unit of accommodation on their HMOs Licence fee.

The Team provide advice to both landlords and tenants on issues relating to HMOs further details can be obtained by contacting the Private Sector Housing Team.

A wide range of legislation is available to deal with HMOs. The Team will use this and any other available legislation as needed when dealing with HMOs. The Council's Regulatory Services Enforcement Policy, and the Enforcement and Regulatory Policy for Private Sector Housing provides further information.

Housing Act 2004

Part 1. Housing conditions

• Category 1 Hazards
  General duty to take enforcement action (Section 5)
• Category 2 Hazards 
  Powers to take enforcement action (Section 7)
• Improvement Notice relating to Category 1 hazards (Section 11)
  The duty of the Authority to serve notice to take remedial action to improve conditions and eliminate Category 1 hazards
• Improvement notice relating to Category 2 hazards (Section 12)
  Power of the Authority to serve notice to take remedial action and improve conditions.
• Prohibition orders relating to Category 1 and Category 2 hazards (Sections 20 & 21)
  The duty and powers available to the Authority to serve prohibition orders to prohibit use of or part of a dwelling.
• Hazard Awareness Notices relating to Category 1 and Category 2 hazards (Sections 28 & 29)
  The duty and powers available to the Authority to serve notices advising of the presence of a Category 1 or Category 2 hazard.
• Work in default (Section 30)
  If an improvement notice is not complied with the Local Authority has the power to undertake the work themselves, recover expenses and prosecute the person on whom the notice has been served for non-compliance.
• Emergency Remedial Action (Section 40)
  Action available to the Authority to take remedial actions to remove the imminent risk of serious harm to the health and safety of the occupants.
• Emergency prohibition order (Section 43)
  Action available to the Authority to prohibit use of all or part of a dwelling if it considers there is an imminent risk of serious harm to the health and safety of the occupant.

Part 2. Licensing Houses in Multiple Occupation

• Licensing of Houses in Multiple Occupation (Section 55)
  Unless otherwise exempt Houses in Multiple Occupation which accommodate 5 or more people must be licensed
• Additional Licensing of Houses in Multiple Occupation (Sections 56 & 57)
  Considerations for Local Authority in designation of areas subject to additional licensing

Part 4. Additional control provisions

• Interim Management Orders (Section 102)
  Duty or power of Local Authority to make an interim management order.
• Final Management Order (Section 113)
  Duty or power of Local Authority to make a final management order following the expiry of the interim management order.
• Overcrowding Notices (Section 139)
  The Local Authority may serve an overcrowding notice of housing in regard to the rooms available if it considers an excessive number of persons of being accommodated.

Part 7. Supplmentary and final provisions

• Management Regulations (Section 234)
  The Management of Houses in Multiple Occupation (England) Regulations 2006 and The Licensing and Management of Houses in Multiple Occupation (Additional Provisions) (England) Regulations 2007 provide provision for the purpose of ensuring satisfactory management standards and arrangements are in place and put a duty on managers to ensure certain measures are met.
• Power to require documents to be produced (Section 235)
  The Local Authority may give notice to require a relevant person to produce certain documents
• Use of information obtained for certain other statutory proposes (Section 237)
  A local housing authority may use information which has been obtained for housing benefit or council tax benefit purposes.
• Powers of entry (Section 239)
• Warrant to authorise entry (Section 240)
• Meaning of House in Multiple Occupation (Section 254)
• HMO declarations (Section 255)

Non Housing Act 2004 Legislation 

• The Housing and Planning Act 2016 allows the council to:
  • impose Civil Penalties of up to £30,000 as an alternative to prosecution for certain specified offences
  • apply to the First-Tier Tribunal for Rent Repayment Orders for a greater range of offences
  • enter the names of landlords and property agents who have been convicted of certain
  • offences or received multiple civil penalties on to a database
  • apply to the First-Tier Tribunal for Banning Orders for the most serious and prolific offenders

Full details of the Civil Penalty and Rent Repayment Order policies can be obtained by contacting the Private Sector Housing Team.

• Gas Safety (Installation & Use) Regulations 1998.
  These Regulations place a duty upon the owner of a property to service every gas appliance on an annual basis.
• The Regulatory Reform (Fire Safety) (England and Wales) Order 2005 Statutory Instrument 2005/1541.
  This order covers general fire precautions and other fire safety duties which are needed to protect relevant persons in case of fire in and around most premises. It also requires fire precautions to be put in place where necessary and to the extent that it is reasonable and practicable to the circumstances of that case.
• The Regulatory Reform (Housing Assistance) (England and Wales) Order 2002.
• The Environmental Protection Act 1990, Section 79 - 81.
  Enables local authorities to take action in respect of a statutory nuisance.
• Compulsory Purchase Orders (Housing Act 1985 Section 17) as amended by the Local Government & Housing Act 1989
• Building Act 1984.
  • Sections 59 and 76 deal with the drainage of buildings and accelerate the procedure to deal with statutory nuisances.
  • Section 64 relates to certain provisions for water closets.
  • Sections 77 and 78 provide for the remedying of dangerous buildings or parts of buildings.
• Means of Escape in case of fire (S.I. 1981 - 1576).
  This order confers a duty on Local Authorities to ensure that HMOs of at least 2 storeys with a combined floor area of 500m² have adequate means of escape from fire.
• Local Government (Miscellaneous Provisions) Act 1976.
  • ​​​​​​​Section 33 provides for the reconnection or continuance of supplies of water, gas or electricity by the Local Authority where the owner has failed to pay the bill.
  • Section 33(2) provides for the recovery of expenditure by the Local Authority.
  • Section 35 confers powers to remedy choked private sewers.
• Health and Safety at Work Act 1974.
  Section 3 places a duty on a person who runs a business to ensure that any persons in his employment are not exposed to any risks to their health and safety.
• Public Health Act 1961.
  Section 17 confers powers to remedy choked drains