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City landlord fined £2,000 for property condition failings

A property management company has been landed with a legal bill of almost £2,000 after admitting that it failed to keep a property in Nottingham in good repair.

Nottingham City Council`s Housing Licensing and Compliance team secured a successful prosecution against ADKAM CIC (Community Interest Company) resulting in a fine of £1000 with costs of £836 and a £100 victim surcharge at Nottingham Magistrates court.

The Council prosecuted ADKAM CIC for five separate Housing Act offences due to the licence holder failing to manage the property in line with the Management of Houses in Multiple Occupation (England) Regulations 2006.

ADKAM CIC pleaded guilty to five separate offences of failing to comply with the Management of Houses in Multiple Occupation (England) Regulations.

Nottingham City Council’s Housing Licensing and Compliance team licence landlords to operate HMOs. The council regularly undertakes risk-based compliance visits to ensure landlords are complying with the law, and on the 7th April 2017 council officers inspected a licensed house in multiple occupation (HMO) on Gregory Boulevard.

The licenced HMO was in a state of disrepair and the landlord ADKAM CIC was failing in its duties to manage the premises in accordance with the law. ADKAM CIC admitted in court that they had failed to keep the property in repair.

Portfolio Holder for Planning and Housing, Cllr Jane Urquhart, said: “Landlords are required to manage their property in accordance with the law. As this case shows, we will take robust action through the courts to prosecute landlords who put tenants’ safety at risk.

“We have powers to revoke the licence of anyone convicted of offences such as these, preventing them from operating premises in future, as well as to impose civil penalties of up to £30,000 against landlords who contravene the law, as an alternative to taking prosecutions through the Courts.”

From April 6th 2018 anyone committing a defined housing related offence such as this may receive a banning order preventing them from owning or operating rented housing.

Source: West Bridgford Wire

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Durham HMO refused planning permission because of number of students in area

DEVELOPERS hoping to build a new student house in the grounds of a Victorian villa have been refused planning permission.

The proposal to replace a double garage in a with a three-storey house of multiple occupation (HMO) was rejected unanimously by members of Durham County Council’s central and east planning committee.

Applicant Timon Kaya had applied on behalf of Green Mountain Estates Ltd to build the property in the grounds of The Lodge, in Laburnum Avenue, Durham.

The plans were opposed by residents, local councillors and MP Roberta Blackman-Woods.

The application was rejected because it would have been in breach of the council’s interim policy on HMOs, as 64 per cent of properties within the site are in multiple occupation.

The developer had argued an exception should be made because there are so many HMOs in the area, another one would not cause further detrimental harm.

Councillor Liz Brown, speaking in opposition to the plans, said: “The developer seems to think this area is past praying for.

“There are a particularly erudite bunch of people living there who have described the difficulties of living in the area but they still feel there’s hope for the area.”

Cllr David Freeman said: “The surrounding area has 64 per cent HMOs so this further permission will make the situation worse.

“HMOs in Laburnum Avenue led to 19 police community protection orders since the beginning of this student year – this is the reality of what happens in areas of Durham city centre.”

Cllr Patricia Jopling said: “We are in Durham building copious amounts of student accommodation and we have to wonder whether it’s a necessary development anyway.”

Source: The Northern Echo

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HMO minimum room sizes to come into force 1 October 2018

The Ministry of Housing, Community and Local Government has published the expected regulations confirming that from 1 October 2018 HMOs licensed in England under part 2 of the Housing Act 2004 will be required to have a floor area no-smaller than 6.51 square metres.

Licenses issued from 1 October will have to contain the following conditions:

  • to ensure that the floor area of any room in the HMO used as sleeping accommodation by one person aged over 10 years is not less than 6.51 square metres;
  • to ensure that the floor area of any room in the HMO used as sleeping accommodation by two persons aged over 10 years is not less than 10.22 square metres;
  • to ensure that the floor area of any room in the HMO used as sleeping accommodation by one person aged under 10 years is not less than 4.64 square metres;
  • to ensure that any room in the HMO with a floor area of less than 4.64 square metres is not used as sleeping accommodation.

Where a breach is found to exist, local authorities will be able to grant a period not exceeding 18 months to rectify the situation.

Additionally, a condition will be included to mandate that landlords of licensed HMOs comply with any relevant local authority waste scheme – although no further details or minimum requirements are specified.

The full draft SI may be found here: The Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018

Source: Landlords

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More landlords will be caught in HMO licensing net

Updated government rules are set to draw thousands more buy-to-let landlords into the HMO licensing net and failure to comply could see them subjected to unlimited fines.

In early March, the Government introduced the Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 (2018/221) (LHMO 2018), which comes into effect from October 1, 2018.

Houses in multiple occupation (HMOs), are defined by the Government as “a property rented out by at least 3 people who are not from 1 ‘household’ (eg a family) but share facilities like the bathroom and kitchen. It’s sometimes called a ‘house share’.”

The Residential Landlords Association recently predicted that as many as an additional 177,000 homes could be subject to HMO licensing and 16% of landlords currently rent to people in HMOs.

Current rules

At present, landlords operating an HMO, are subject to the Licensing of Houses in Multiple Occupation (Prescribed Descriptions) (England) Order 2006 (2006/371), which is applied in certain regions of England and Wales.

Under the present rules, landlords must have a licence if renting out a large HMO. This is defined as five or more people who form more than one household, is at least three storeys high and tenants share toilet, bathroom or kitchen facilities.

However, some local councils still demand a licence even if the property is smaller and rented to fewer people.

At the moment, HMO licensing is limited to specific local authorities, so whether a landlord’s property is subject to one, depends on its location. Landlords can check whether their local council requires an HMO licence on a relevant property, by visiting the following page https://www.gov.uk/house-in-multiple-occupation-licence

The new rules

Under the new rules, licensing will apply to HMOs occupied by five or more people, irrespective of the number of storeys. Also, HMO licensing will apply to purpose-built flats where there are up to two flats in the block.

A licence is valid for five years and a separate licence must apply to each HMO property.

There will be transitional provisions for HMOs that are already licensed under the selective licensing provisions, which will last for six months, but which will be subject to mandatory licensing from 1 October 2018.

Licence requirements

In order to operate a licenced HMO, landlords must comply with a number of standards:

  • the house must be suitable for the number of occupants;
  • whoever manages the property – whether that is the landlord or an agent, must be considered ‘fit and proper’ and must have no criminal record or history of breaching landlord laws of code of practice;
  • the local council must be sent an updated gas safety certificate annually;
  • the landlord must install and maintain smoke alarms;
  • the landlord must provide safety certificates for all electrical appliances within the property when requested.

Comment

Jorden Abbs, director of operations at Commercial Trust Limited commented: “It is imperative that landlords check whether their property is classified as an HMO requiring a licence by October 1, or they risk falling foul of the updated laws.

“This extension of the HMO laws will place further pressure on landlords and local authorities, but can also be viewed as a further initiative aimed at raising standards within the private rental sector.

“We have not, as yet, received any comment from lenders as to whether this will affect existing borrowers, although realistically we can expect a couple of potential outcomes.

“Lenders who currently offer mortgages to HMOs that are not currently licensed, but will be under the new rules, can either change their criteria to accommodate these properties and continue to transact; or they will not and at renewal the borrower will have to look elsewhere.

Source: Mortgage Finance Gazette

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Bedford Landlord Fined For Unlicensed HMO

Bedford landlord has been prosecuted for operating an unlicensed House in Multiple Occupation (HMO).

Bedford Borough Council prosecuted Mr Fhalora of Ampthill Road, Bedford, in January for failing to obtain an Additional HMO Licence for the property that he manages on behalf of its owner. Mr Fhalora lets out the Brackley Road property to tenants.

The landlord was found guilty in his absence after entering a not guilty plea. As a result of this, he was fined £2,500 by Luton Magistrates Court. He was also told that he must pay the council’s full costs of £8,911.12 along with a victim surcharge of £170.

Bedford Borough Council introduced the Additional HMO Licensing scheme in 2013. It applies to properties rented out to three or more unrelated tenants who share facilities such as kitchens and bathrooms. These types of properties are subject to additional regulation to give greater protection to tenants who reside in them. The licences require landlords to invest in their properties, making them safer and improving their state of repair.

Mr Fhalora had been reminded by the council’s Community Regulation Team that he was required to license the property under the Housing Act 2004. However, the court heard that the rogue landlord had failed to act on the advice he was given by the council. He potentially risked the safety of his tenants and neglected his responsibilities as a landlord.

Portfolio Holder for Community Safety & Regulatory Services, Councillor Colleen Atkins, said: ‘Bedford Borough Council prioritises the safety of its residents by ensuring the Borough’s private rented sector is effectively regulated. An Additional HMO Licence is required for HMOs which are occupied by three or more unrelated people who share certain facilities in the household such as a kitchen or bathrooms. Anyone who owns or manages an HMO can check with the Council to see if they need to have a licence.’

Source: Residential Landlord

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High Court ruling counts children as residents in HMOs

The High Court has confirmed that children under the age of 18 are ‘residents’ for planning purposes when calculating the total number of residents in a Class C4 HMO.

Paramaguru v London Borough of Ealing

In the case of Paramaguru v London Borough of Ealing, Mr Justice Supperstone was asked by local landlord Sinnathurai Paramaguru to rule on the judgement made by Ealing Magistrates Court that children up to 18 years of age can be classified as residents under the jurisdiction of Class C4 of the Schedule to the Town and Country Planning (Use Classes Order) 1987, and whether the magistrates had jurisdiction to state a case.

The court also charged Mr Paramaguru with one offence of breaching a planning enforcement notice contrary to section 179(2) of the Town and Country Planning Act 1990 which required him to cease the use of his property as a Class C4 HMO.

Following this ruling by the magistrates’, Mr Paramaguru entered a guilty plea, where the case was subsequently referred to Isleworth Crown Court under section 70 of the proceeds of crime act 2002, where confiscation proceedings and furthering sentencing will be put to consideration, however the hearing has been adjourned pending the outcome of the appeal.

In his judgement, Justice Supperstone ruled that the magistrates were correct in their ruling that children under 18 count as ‘residents’ in these circumstances, agreeing with magistrates concerns of uncertainty, outlined in paragraph 7 of the case: “We strongly believe that Parliament did not intend to create a situation where you could have a property, for example the property we are dealing with, to have six adults and 40 children and still be within the law. If we were to find that children do not count that situation would be possible.”

Continuing his ruling, Justice Supperstone argued that a ruling to the contrary position would introduce uncertainty in regards to local authority control of HMO’s, which are “likely to be made more difficult through the introduction of uncertainty… if they have to assess whether children are ‘young’ or ‘very young’.”

Read the full case hearing here.

Planning Changes

Since 2010 in England the introduction of the C4 Planning Use Class for small HMOs has meant that letting a house or flat to two or more households has represented a material change of use – technically requiring planning permission. Fortunately this is covered by general permitted development meaning that no application is required.

However, local authorities can designate an Article 4 Direction removing all permitted development rights, and subsequently require landlords to apply for planning permission before letting to sharers instead of a single household or family.

Applications for planning permission in Article 4 areas had been free, but due to recent changes a landlord may now have to pay a fee (increased to £462.00) for applying for a change of use in an area where permitted development has been withdrawn.

This change encourages local authorities to remove permitted development so they can gather a fee from landlords.

The Government is also strengthening the rules surrounding HMO standards and licensing for children, with Housing Minister Heather Wheeler introducing new measures effective in October that will dictate minimum room sizes, with rooms slept in by children 10 years or younger to be no smaller than 4.64 square metres.

Read more about the extension of mandatory HMO licensing here.

 Source: Landlords
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Operating unlicensed HMO costs Bedford landlord more than £11K

A landlord has been prosecuted by Bedford Borough Council for operating an unlicensed HMO (House in Multiple Occupation) in the Bedford area.

Mr Fhalora of Ampthill Road, Bedford, was charged on January 3 with failing to obtain an Additional HMO Licence for the property that he manages on behalf of the owner and leases to tenants in Brackley Road.

Mr Fhalora was found guilty in his absence after entering a not guilty plea. As a result, Luton Magistrates Court fined him £2,500. Mr Fhalora was also ordered to pay the council’s full costs of £8,911.12 along with a victim surcharge of £170.

The court heard Mr Fhalora had been reminded by the council’s Community Regulation Team that he was required to licence the property under the Housing Act 2004. However, he failed to act on the advice given, potentially putting the safety of the tenants at risk and showing wilful neglect of his responsibilities as a landlord.

Councillor Colleen Atkins, Portfolio Holder for Community Safety & Regulatory Services said: “Bedford Borough Council prioritises the safety of its residents by ensuring the Borough’s private rented sector is effectively regulated.

An Additional HMO Licence is required for HMOs which are occupied by three or more unrelated people who share certain facilities in the household such as a kitchen or bathrooms.

Anyone who owns or manages an HMO can check with the Council to see if they need to have a licence.” Bedford Borough Council introduced an Additional HMO Licensing scheme in 2013 for properties rented out to three or more unrelated occupiers who share facilities such as kitchens and bathrooms.

These types of properties are subject to further regulation to give greater protection to tenants as these licences require landlords to invest in their properties, making them safer and in a better state of repair Landlords or tenants requiring further information or clarification regarding HMO Licensing requirements should contact the HMO Licensing Team on (01234) 718099 or refer to the council’s website at: www.bedford.gov.uk/multipleoccupation

Source: Bedford Today

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Extension of mandatory HMO licensing set for October 2018

The Government has confirmed that the extension of mandatory HMO licensing is due to come into force form 1st October 2018, subject to Parliamentary approval.

The regulations bring purpose built flats where there are up to two flats in the block, into the scope of mandatory licensing. They also remove the three storey rule -at present mandatory licensing applies to HMOs of at least three storeys and five occupants comprising of two or more family units.

How will it affect me?

Research from RLA PEARL has found that 16% of landlords rent to people in HMOs.  It is estimated that an additional 177,000 HMOs will become subject to mandatory licensing in England as a result of this extension.

Properties will be subject to mandatory licensing if they meet the following criteria:

  • It is occupied by five or more persons;
  • is occupied by persons living in two or more separate households; and
  • meets—
    • the standard test under section 254(2) of the Act;
    • the self-contained flat test under section 254(3) of the Act but is not a purpose-built flat situated in a block comprising three or more self-contained flats; or
    • the converted building test under section 254(4) of the Act.

The Order, which can be read here applies to HMOs in England, but does not apply to converted blocks of flats, to which section 257 of the Act applies. These are buildings that have been converted into and consist of self-contained flats where the building work undertaken in connection with the conversion did not comply with the appropriate building standards and still does not comply with them, and less than two-thirds of the self-contained flats are owner-occupied.

Six month grace period

There would be a grace period of six months to give landlords time to comply and local authorities time to process licences.

The RLA believes many of the changes are unnecessary and says they will put a huge strain on local authorities. The Association made its points in its formal response to the Government consultation.

Source: RLA

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Overturned: council’s ban on hotel being converted into HMO

A COUNCIL ban on a hotel being converted into an HMO has been overturned.

Last year Bournemouth council turned down a bid to convert Earlham Lodge, at 91 Alumhurst Road, Bournemouth, into an HMO (house in multiple occupation), claiming it could damage Alum Chine’s reputation as a tourist destination.

However the applicant has now successfully appealed the decision, and the council will have to pay the costs.

Planning inspector Andy Harwood’s report states: “I have no evidence that the balance of the community will be harmed by the HMO.

“In relation to the main issue, the HMO has an acceptable impact upon the character of the surrounding area and its tourism function.”

He was critical of the council’s submission describing the tourism offer in the Alum Chine area.

The borough said according to the most recent figures, 22 per cent of visitors to Alum Chine beach during the summer of 2015 were staying overnight in Bournemouth, 50 per cent in hotels and 29 per cent in self-catering accommodation.

However the inspector said there was no evidence these people were staying in Alum Chine.

“It is not clear how the holiday accommodation is distributed or to what degree those properties are separated by residential accommodation,” he said.

“It is possible that some of these properties could involve use of rooms within dwellings rather than being solely holiday accommodation.

“The evidence is not precise or detailed.

“It is not presented in a form that helps me understand the geographical distribution of the holiday accommodation.

“From what I saw at my site visit, the largely suburban residential character of the area around the site does not appear to include a noticeably high concentration of properties that are clearly in use for holiday accommodation.”

Bournemouth council has already approved, in 2016, plans to convert the building to holiday flats, and recently agreed to drop a condition so the flats can also be used for accommodation.

The HMO bid last year attracted five letters of objection from nearby residents, chiefly expressing their concerns about potential noise, the loss of the tourist facility and the setting of a precedent for HMOs in the area.

Source: Bournemouth Echo

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Additional Licensing proposal in Bristol

The council proposes to introduce an Additional Licensing scheme for houses in multiple occupation across Bristol City.  Specifically 12 wards that make up central Bristol – Ashley, Bishopston & Ashley Down, Central, Clifton, Clifton Down, Cotham, Easton, Hotwells & Harbourside, Lawrence Hill, Redland, Southville and Windmill Hill – with the aim to improve poor management and poor housing conditions.

The Proposed Additional will capture most HMO’s that are not defined as HMO’s under the expected Mandatory Licensing regulations expected in April.

It would apply to all private rented houses or flats in this area that are let to three or more people who aren’t related and who share some facilities, like kitchens or bathrooms.

Landlords would need to apply for a licence and meet licensing conditions.

The basic proposed licence fee under this scheme without any discounts, would be £1,660, valid for up to five years. With discounts (early application/proof of in date & satisfactory Gas, Electrical & EPC Certificates and membership of an approved West of England Rent with Confidence scheme) the licence fee would be reduced to £885. For renewals this would be £785.

Further information about this proposal can be accessed by clicking here.

“Rob Crawford, Chairman for the Association of Local Landlords (Wessex) encourages all landlords that may be affected to read the proposal in detail before responding to the consultation survey.  The consultation closes on 13th May 2018.

The proposal was not unexpected after Councilor Paul Smith’s (BCC’s Cabinet Minister for Housing) outburst at a recent landlord meeting, where he revealed plans to introduce City Wide licensing were due to “Labour Policy!

Together with recent changes in tax legislation, higher tax threshold landlords with large portfolios now face bankruptcy.  Irrespective as to whether the landlord is compliant or rogue. Additional licensing does not discriminate sufficiently between the two!

The Council has not demonstrated how a basic Additional Licensing fee of £1,660 can possibly be justified.  If the Council maintains that this level of fee reflects its costs of administering the scheme, then it must be so inefficient that it must be challenged.  While the Council may have the legal power to introduce new measures, it is also under a duty to do so in the most cost-effective manner possible.  ALL Wessex is aware of at least one significantly lower cost alternative scheme.

Furthermore, the Council needs to be reminded that there is a legal obligation on Councils to only spend the funds raised from Additional Licensing on the scheme.  It is simply illegal to spend this money on other Council services.

The Council is proposing that a discount of £775 can apply, resulting in a net fee of £885.  However, the Council has not justified why its costs would be so much more if landlords cannot comply immediately with these requirements.  Even at a proposed discounted fee level of £885, ALL Wessex has some difficulty in understanding how the Council’s costs can be so high.

Whilst we wish to support the eradication of rogue landlords and where necessary support landlords in meeting an acceptable rental standard, we do not believe Additional Licensing as proposed is in the interest of landlords or their tenants.

We will be providing landlords with guidance on how to best respond to the consultation in due course.   All landlords must play an active part in objecting to this proposal”

Rob Crawford, Chairman for the Association of Local Landlords (Wessex)

Source: Property 118