Landlords may take council to court over HMO licencing

AFS Team·4 July 2013·3 min read
Landlords may take council to court over HMO licencing
HMO landlords may mount a legal challenge against a council shared home licensing scheme.

Landlords will vote on taking Bath and North East Somerset Council to court over plans to licence 1,400 shared homes in some city neighbourhoods where university students live.

The scheme is due to start on January 1, 2014.

Landlords will pay £500 to licence each HMO shared by three or more.

The council explained licensing HMOs will compel private landlords to provide better homes.

The National Landlords Association for Wessex complains the scheme is not needed as the city already has a landlord accreditation scheme.

“The council has not justified bringing in additional licensing,” said chairman Rob Crawford. “If imposed, the scheme will generate an unnecessary additional legislative burden, risk and cost to landlords.

“This is likely to result in nothing more than increased rents, higher cases of tenant eviction and landlord convictions. Additional licensing, and the additional risks it brings, is likely to discourage landlords from investing in properties in the area. As a consequence this is likely to result in the devaluation of affected properties.”

The council has also taken powers to ban letting a new HMO without gaining planning permission.

Plans for new HMOs will be rejected if more than 25% of homes in a 100 metre radius are already shared houses.

First HMO prosecution

HMO landlord Ray Watton has the distinction of being the first landlord prosecuted for housing offences in Bournemouth, Dorset,

He was fined £1,000 and ordered to pay £820 costs after pleading guilty to 10 HMO management offences at the town’s magistrates court. Tenants had complained about the state of their home.

Another city starts HMO licensing

Southampton City Council’s HMO licensing scheme started from July 1, 2013.

Covering the Bargate, Bevois Valley, Portswood and Swaythling neighbourhoods, all homes shared by three or more tenants need a license. The council reckons the city has more than 7,000 HMOs mainly serving students, with most concentrated in the four wards covered by the scheme.

The five-year licence costs £240 for each HMO with three tenants, £320 for four tenants or £400 for five or more.