Landlords and councils are progressing well with new housing licensing laws according to a comprehensive survey released this week by LACORS, the Local Authorities Coordinators of Regulatory Services...
In April 2006 mandatory licensing for houses in multiple occupation with three or more storeys, occupied by five or more people, forming two or more households was introduced. Under the new legislation, these houses are considered to be the most significant health and safety risks to tenants and landlords who fail to obtain a licence risk fines of up to £20,000.
In collaboration with the National HMO Network, LACORS conducted a survey of all English councils in March this year, to establish how well they are exercising new licensing powers introduced by the Housing Act 2004.
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Over 6,000 licences already granted
The LACORS survey showed that councils have received 22, 314 applications from landlords who operate licensable HMOs, affecting over 111,570 tenants. As at 2 March 2007, 6,962 property licences had already been granted.
The survey also showed that 86 per cent of councils are already using a range of tools to identify HMOs being operated illegally without a licence. 13 per cent of councils have had cases where the landlord has failed the 'fit and proper person' assessment. In most cases, the council has negotiated with the landlord for another person to take over management of the property.
Councils also are working well together on this issue. The survey showed that 95 per cent of councils work in partnership with other councils to share good practice in relation to the Housing Act 2004, and 90 per cent of those councils said the partnership arrangements are either very or quite effective.
LACORS is continuing to work hard to assist councils with implementation of the Housing Act 2004 and will use the results of this survey to establish what further support is needed.
Cllr Geoffrey Theobald, chairman of LACORS, commented: “These findings bring into focus councils' key achievements in implementing HMO licensing and importantly highlight the aspects of the Housing Act 2004 where further work is required. LACORS will support councils in getting any remaining issues with the new regime ironed out, ultimately improving the housing conditions of vulnerable tenants.
Theobald continued: “Poorly managed HMOs pose significant fire and health and safety risks to vulnerable tenants, so it is certainly reassuring that most of the landlords who have already come forward have been given the green light to continue. It’s also good news that such a high proportion of councils are working hard to identify those landlords who are operating illegally. Landlords who are uncertain whether their HMO requires a licence should contact their council without delay.”
But concerns remain…
While the implementation of the new regime seems to be running smoothly, some observers still have some concerns.
Simon Gordon, Head of Public Affairs for the National Landlord Association, commented: “While many landlords already have the requisite licences for their HMOs, we are concerned that a number of rogue operators have not taken the necessary steps to comply with the law. Although the rules are complex, we have an advice-line to assist all our members and help them get to grips with the new regulatory regime.”
Gordon commented: “Quite apart from the £20,000 fine that can be levied, in extreme cases landlords can be subject to a management order. We urge all landlords to take steps to ensure they understand and are compliant with the rules. This is not something that is going to go away if you ignore it – councils are not going to let rogue operators get away with it.”
