licensing-who-01Who Should Apply?

Each licensable HMO will need its own licence.

Obviously there are times when the owner of a property manages it himself, makes letting arrangements with tenants, organises repairs and collects rent.

In other cases the owner of a property will engage an agent or manager to take of the property.

Both the licence holder and the person who manages the property (these may both be the same person) will both need to be a “fit and proper person” to hold a licence.

Once a licence is granted it cannot be transferred to another property or to another person.

If the HMO is sold the new owner and/or manager will need to apply for a new licence.

A licence will normally last for 5 years.

licensing-who-02What Will it Cost?

The cost of an HMO licence will vary in different local council areas. The government has not set a specific fee or set a limit as to how much each council can charge.

Each council will calculate what it costs them to implement HMO licensing – staff costs including training, inspection and administration costs, including publicity, may all be taken into account.

The council will then set its licence fees on this basis. A council may decide to subsidise licence fees in some cases, but they are not allowed to use licensing fees to raise revenue for other projects or areas of work.

The Local Government Association has produced a financial toolkit to assist councils in setting their Houses in Multiple Occupation (HMO) Licensing fees. You can see that here.