Extension of mandatory licensing – The Government has spoken
We have been waiting with baited breath, and finally the Government has published their response to the technical discussion on the extension of mandatory licensing which closed in December 2015.
The Government is proposing extending mandatory licensing to cover:
- ALL properties with 5 or more occupants from 2 or more households irrelevant of how many storeys the dwelling has, and
- Flats above or below business premises
These new regulations are likely to be introduced in April or October 2017 and will allow landlords a 6 month grace period in which to obtain their license with those already subject to additional licensing allowed to passport into mandatory licensing free of charge.
The penalties for non-compliance are severe and include criminal prosecution as well as a civil penalty of up to £30,000.
The expansion of mandatory licensing is welcomed by many as it makes it clearer to landlords what an HMO actually is and when they need to provide a license and allow Local Authorities to further address poor standards in HMO’s of all sizes.
The Government is also seeking to introduce standardised minimum room sizes of 6.52 square metres for one person and 10.23 square metres for 2 people in accordance with overcrowding standards contained within the Housing Act 1985 in order to close the loophole created by a recent upper-tier tribunal ruling.
DASH generally supports the Government’s intention to address overcrowding, however, by establishing a minimum room size the number of shared rooms available will inevitably decrease whilst demand increases due to the changes in Local Housing Allowance for single under 35’s. A large number of landlords have stated that the single bedrooms in their properties do not meet this minimum standard and so they would have to serve the occupants with notice – far from ideal.
These issues, among others including fit and proper person checks and waste disposal will all be subject to further consultation so make sure you have your say by visiting: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/560774/161018_HMO_CONSULTATION.pdf