Understanding Additional HMO Licensing and Compliance Changes

Detailed information on the impact of Additional HMO Licensing, including financial implications, new criminal liabilities for landlords, and increased enforcement measures. The changes in compliance requirements with Additional HMO Licensing are highlighted, emphasizing the importance of adhering to regulations for housing health and safety. The content stresses the need for enhanced compliance regardless of licensing status.

• Compliance Requirements
• HMO Licensing
• Housing Health and Safety
• Landlord Responsibilities
• Enforcement Measures

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1. (Additional) HMO Licensing and Compliance Phil Turtle Compliance Director Landlord Licensing & Defence

2. What difference will Additional HMO Licensing Make?

3. What difference will Additional HMO Licensing make? Brings in licensing for 3 and 4 SHARERS (not bedrooms) Financial Licence fee of First stage Fee Second stage Fee TOTAL Council Revenue to the council up From 1,000 x 1,195 = 1.2 million for 5+ person HMOs to 3,000 x 1,195 = 2.6 million 717 Administrative cost 478 Enforcement cost 1,195 1.4 million budget for ENFORCEMENT Far more ENFORCEMENT

4. What difference does Additional HMO Licensing make (2)? Potential for unreasonable licence conditions (standard and property specific) Licence conditions create new criminal liabilities for landlords Catch out unaware landlords (most) who blindly accept licence conditions Even more revenue for the council Breaches of Licence Conditions Criminal Civil Financial Penalty fine up to 30,000 Average Financial Penalty fine 12,000 to 15,000 And don t forget MORE ENFORCEMENT

5. Additional Licensing changes to compliance requirements

6. Changes to compliance requirements Compliance requirements with Additional HMO Licensing 1. 29 Hazards of Housing Health and Safety Rating System 2. Management of Houses in Multiple Occupation (England) Regulations 2006 3. Council HMO Amenity Standards 4. HMO Licence Conditions Compliance requirements before Additional HMO Licensing 1. 29 Hazards of Housing Health and Safety Rating System 2. Management of Houses in Multiple Occupation (England) Regulations 2006 3. Council HMO Amenity Standards 4. HMO Licence Conditions Hardly any difference except MORE ENFORCEMENT!

7. Compliance That is Required Now - Regardless of Licensing

8. National Compliance HHSRS the 29 Hazards 1 Damp and mould 2 Excess cold 3 Excess heat 4 Asbestos (and MMF) 5 Biocides 6 Carbon Monoxide and fuel combustion products 7 Lead 8 Radiation 9 Uncombusted fuel gas 10 Volatile Organic Compounds 11 Crowding and space 12 Entry by intruders 13 Lighting 14 Noise 15 Domestic hygiene, Pests and Refuse 16 Food safety 17 Personal hygiene, Sanitation and Drainage 18 Water supply 19 Falls associated with baths etc 20 Falling on level surfaces etc 21 Falling on stairs etc 22 Falling between levels 23 Electrical hazards 24 Fire 25 Flames, hot surfaces etc 26 Collision and entrapment 27 Explosions 28 Position and operability of amenities 29 Structural collapse and falling elements There must be no Category 1 or High Category 2 Hazards

9. Local Compliance York HMO Amenity Standards Well hidden on website Most councils call them HMO Amenity Standards York appears to call them HMO_local_implementation_policy.pdf They are not very comprehensive Therefore not very helpful Not as barmy as those of many councils However, just because barmy is not written down, it does NOT mean barmy will not be applied during Enforcement

10. Compliance HMO Management Regulations (National Regulations - local interpretation) Regulation 1 Doesn t exist Regulation 2 Doesn t exist

11. HMO Management Regulation 3 Duty to inform the occupier of contact details including name, address and telephone number and to display this information in a prominent place in the HMO Criminal Offence since 2006 Penalty for failing to display up to 30,000. Generally 300 to 5,000 Applies regardless of licensing

12. HMO Management Regulation 4 Duty of manager to take safety measures Reg 4(1) Means of escape from fire: in good order and free from obstruction Reg 4(2) Fire fighting equipment Reg 4(3) Fire Exit signs (except 4 or fewer occupants) Reg 4(4) All such measures as are necessary to protect occupiers from injury E.g. the 29 HHSRS Hazards Especially Fire Alarms, Fire Doors, Fire compartmentation Reg 4(5) Unsafe roof or balcony and falls from windows EACH of these Criminal offence since 2006 Civil Financial Penalty up to 30,000 Generally 18,000 to 28,500

13. Modern fire-resistant furnishings 2 minutes 24 seconds from ignition to 800C fireball This is why fire precautions matter. Fires don t happen often But without Fire Alarms and Fire Doors people die or suffer life changing injuries. 95% of landlords not Competent Person to assess fire risk

14. HMO Management Regulation 5 Duty of manager to maintain Water & Drainage Reg 5(1) Water supply & drainage system maintained in good and working order Reg 5(2) Must not cause water or drainage to be interrupted Even if you re not the one being billed. Much safer to be the billed party EACH of these Criminal offence since 2006 Civil Financial Penalty up to 30,000 Generally 18,000 to 28,500

15. HMO Management Regulation 6 Duty of manager to supply and maintain gas & electricity Reg 6(1) Provide Gas appliance test certificate Reg 6(2) Test must be by Registered Gas Engineer (now Gas Safe) Reg 6(3) Was electrical testing now changed to EICR which is moved to Electrical Safety Standards in Private Rented Regulations 2020 EACH of these Criminal offence since 2006 Civil Financial Penalty up to 30,000 Generally 18,000 to 28,500

16. HMO Management Regulation 7 Duty of manager to maintain common parts, fixtures fittings and appliances Reg 7(1) Common parts maintained in good clean decorative repair, safe and working condition, reasonably clear from obstruction Reg 7(2) Handrails and bannisters at all times in good repair & stair coverings sound Such additional handrails and bannisters as needed for HMO safety All windows and ventilation in good repair Adequate lighting available at ALL times (includes emergency lighting) All fixtures and fittings used by more than one occupant in good and safe repair and clean working order Kitchen, lounge, furniture, bathrooms and WCs as well as stairs, landings hallways All criminal since 2006. All with fines up to 30,000

17. HMO Management Regulation 8 Duty of Manager to maintain living accommodation Reg 8(1) ensure living accommodation and furniture supplied are in clean condition at start of tenancy Reg 8(2) (each living accom) internal structure in good repair, fixtures & fittings & appliances in good repair and clean working order. Every window and means of ventilation in clean working order. EACH of these Criminal offence since 2006 Civil Financial Penalty up to 30,000 Generally 18,000 to 28,500

18. HMO Management Regulation 9 Duty of manager to provide waste disposal facilities Yes, mad though it seems, HMO tenants are not responsible for putting stuff in bins / the right bin. You the manager are responsible No point arguing Criminal offence since 2006 (and dead easy to get you for) Civil Financial Penalty up to 30,000 Generally 18,000 to 28,500

19. HMO Management Regulation 10 Duties of occupiers of HMOs Every occupier of the HMO must (a) conduct himself in a way that will not hinder or frustrate the manager in the performance of his duties; (b) allow the manager, for any purpose connected with the carrying out of any duty imposed on him by these Regulations, at all reasonable times to enter any living accommodation or other place occupied by that person; (c) provide the manager, at his request, with any such information as he may reasonably require for the purpose of carrying out any such duty; (d) take reasonable care to avoid causing damage to anything which the manager is under a duty to supply, maintain or repair under these Regulations; (e) store and dispose of litter in accordance with the arrangements made by the manager under regulation 9; and (f) comply with the reasonable instructions of the manager in respect of any means of escape from fire, the prevention of fire and the use of fire equipment. Always display this in HMO BUT don t expect any help from council in enforcing it. There has never been a single prosecution!

20. Licence conditions

21. Licence conditions Criminal liability The licence holder must ensure that carbon monoxide detectors are fitted to all high- risk rooms/each level where there is sleeping accommodation to ensure the audibility of the alarm is adequate to wake a sleeping person, in accordance with EN50291. Where matters have been raised by the competent person as needing urgent or remedial the licence holder must have declared that the work must have been completed. To provide a copy of the comprehensive fire risk assessment for that property and details of the satisfactory means of fire escape and fire detection system. A system for tenants to report defects, including in emergencies and arrangements to respond to those requests.

22. Licence conditions (2) Criminal liability A process for dealing with anti-social behaviour occurring within the HMO by tenants or their visitors. Arrangements in place for periodic inspections to identify where repair or maintenance is needed. The name, address and telephone number for licensee and manager is to be displayed in the common parts of the HMO. Copies of a valid safety certificates safety (gas/electrical/ PAT testing) and a plan showing the internal layout of the property specifying the rooms to be displayed in the common parts. Since 2016 it has been a legal requirement for all licence holders to hold a recognised training qualification as a condition of HMO licensing. (Untrue, but criminal once the make it a licence condition)

23. Licence conditions (3) Criminal liability Single room 6.52m2 Double room 10.22m2 AND living room These floor areas are to be regarded as barely adequate and therefore should not be routinely assumed as optimum bedroom sizes. Only with kitchen 7m2 and living room 10m2 (or kitchen/living 15m2) Single room 10m2 Double room 15m2 No living room, shared kitchen Single room 13m2 Double room 18m2 When kitchen inside room

24. Get compliant NOW Regardless of licensing

25. Get compliant NOW dont wait You are already criminally liable to instant and massive fines under the HMO Management Regulations They just haven t found your property(s) yet. Of course licensing gives them all the HMO addresses for enforcement Professional Compliance audit and report against HHSRS & Fire HMO Management Regulations York HMO Amenity standards Fire Risk Assessment by certified fire risk assessor (you are not a competent person to do this unless you are trained).

26. York RLA package Compliance and Licensing

27. Pre-Licensing Compliance Compliance Inspection HHSRS 29 Hazards Fire Risk Assessment (initial) Leeds HMO Amenity standards IF PERFECT >> clean HHSRS and clean Fire Risk Assessment for licence application More likely >> ACTION REPORT Landlord does corrective works Re-inspection Clean HHSRS and Fire Risk Assessment to accompany licence application

28. Licence Application -1 Ensure all necessary certificates have been obtained Check in-date and validity of certificates EICR (is this full property often they are not) Gas Safety Record PAT Test Alarm installation & maintenance certificate Emergency lighting installation & maintenance certificates HHSRS Fire Risk Assessment Anything else York CC may demand (e.g. fire door certificates possibly)

29. Licence Application - 2 Gather all necessary person information Freeholder / Leaseholder Licence holder & manager Fit and Proper test ID Advise on most appropriate Licence Holder Manager Check mortgage product compliance HMO or potential mortgage fraud

30. Licence Application 3 Licence Draft Inspect & Representations Letter Landlord is represented by Landlords Defence Ltd Receive draft licence and study Prepare and submit a Formal Representation against Licence Conditions to York CC

31. Costs (up to 6 person HMO) Initial inspection and ACTION report Re-inspection and clean HHSRS & FRA Licence Application, Review & Represent 550 +VAT Total York RLA member discount York member total cost 600 +VAT 250 +VAT 1,700 +VAT 15% 1445+VAT (York CC licence fee extra)