A person owning or managing an HMO which is required to be licensed must apply to the Local Housing Authority (LHA) for a licence for that property unless a Temporary Exemption Notice has been applied for or is in force.

The licence holder must be the landlord or person who manages the property and to whom the tenants pay rent if different from the LL. The licence holder needs to be the person in control of the property.

It is important that the licence holder is the person who can authorise, organise and pay for essential repairs. They also must be available to tenants in case of questions or problems that arise with respect to the property. They must have the means to resolve them where reasonably practicable to the standards required by the Housing Acts.

The LHA must grant a licence if it is satisfied that:

• The HMO is reasonably suitable for occupation by the number of persons permitted under the licence having regard at least to the minimum prescribed standards of amenities and facilities. These include the number, type and quality of shared bathrooms, toilets and cooking facilities.
• The proposed licence holder is the most appropriate person to hold the license.
• The licence holder would be a fit and proper person. The proposed manager, if not the licence holder, is fit and proper and that other persons involved in the management of the house are also fit and proper and the proposed management arrangements are satisfactory; including that the person involved in the management of the house is competent and the structures and funding for the management are suitable.
• In deciding whether the person is fit and proper, the LHA must have regard, amongst other matters:
  • to any previous convictions relating to violence, sexual offences, drugs or fraud;
  • and whether the proposed licence holder has contravened any laws relating to housing or landlord and tenant issues;
  • and whether the person has been found guilty of unlawful discrimination practices;
  • and whether the person has managed HMOs otherwise than in accordance with any Approved Code of Practice.
  • whether the person has associated with someone who has done any of the above things and that this association is thought by the LHA to be relevant.

It is, however, up to the LHA to decide the relevance of these considerations (or other matters it considers to be relevant) in deciding whether or not the person is fit and proper.

The above 4 LHAs will consult with each other when an individual is thought not to be fit and proper to help ensure a consistent approach across the region.

There will be a panel comprising of representatives from the 4 LHAs to which landlords who are considered not fit and proper can put their case. An appeal against the decision of the panel will be to the Residential Property Tribunal.

If the LHA is not satisfied that it can grant a licence under the above conditions it must refuse to grant the licence and make an Interim Management Order. (See ODPM Fact sheet 6 for details.) However, before refusing to grant a licence it must give its reasons for proposing to do so, in advance, and give the applicant 14 days in which to make representations about that proposal.