Licensing Requirements for HMOs in Westminster: What Landlords Need to Know

Westminster City Council has implemented an Additional HMO Licensing Scheme alongside the government’s Mandatory HMO Licensing Scheme. This new regulation affects owners and renters of houses in multiple occupation (HMOs) in the City of Westminster.

If you own or rent a house in multiple occupation (HMO) in the City of Westminster, you may not be aware of the new licensing requirements that came into effect on 30 August 2021. The council has introduced a borough-wide Additional HMO Licensing Scheme to complement the Government’s Mandatory HMO Licensing Scheme. This means that smaller flats and house shares with three or more people forming two or more households need to obtain a licence from the council.

This blog post is aimed at helping explain what the new legislation means for you and what you need to know in order to comply with it.

Licence Requirements For HMOs

If you rent out a property that has five or more tenants living as two or more separate households who share facilities, you must have a licence from the council. This is a legal requirement that applies to all HMOs in the UK since 2006. You can find out more about the types of properties that fall under this category on the government’s website.

Westminster council has introduced the following scheme to improve the standards and conditions of smaller HMOs that are not covered by the mandatory scheme as these HMOs may have issues such as overcrowding, poor maintenance, fire hazards, or anti-social behaviour.

Additional HMO Licence

If you have a shared house or flat where three or more tenants from two or more households use facilities such as a kitchen or bathroom, you will need a licence from Westminster’s Additional Licensing Scheme. This also applies to HMOs in purpose-built blocks that do not have a licence from the mandatory scheme. These HMOs are sometimes called Section 254 HMOs. Some kinds of hostel and staff accommodation may also require a licence from Westminster’s additional licensing scheme.

Some properties that do not have any shared facilities may still be covered by Mandatory or Additional licensing if they have been turned into flats but some of the flats are not fully self contained.

Westminster council has introduced this scheme to improve the standards and conditions of smaller HMOs that are not covered by the mandatory scheme as these HMOs may have issues such as overcrowding, poor maintenance, fire hazards, or anti-social behaviour.

Household Definition

A household consists of members of the same family who live together and includes couples who live together. Half relatives and foster children are also part of the same household. A property with three people who are not related to each other would be considered three households.

This is important for landlords in Westminster because the council uses this definition to determine whether a property is an HMO and needs a licence. If you are not sure whether your tenants are part of the same household or not, you should check with them or seek advice from the council. If you misclassify your property as an HMO or not, you could face problems with your licence application or enforcement.

Licence Holder

The best person to apply for a licence is the ‘person having control’ of the property. This is usually the person who gets the rent.

The council must check that the proposed licence holder is a fit and proper person before granting a licence. This requirement is to make sure that those who run the licence and manage the property are honest and trustworthy and can handle the management of a residential property without endangering the well-being or safety of the people who live there.

Again it is vital for landlords in Westminster to be fully aware of this because the council wants to ensure that not only  responsible and reliable people are in charge of HMOs. But also that anyone else involved in managing your property, such as an agent or a manager, is also fit and proper.

If you are unsure of what determines a fit and proper person, Westminster City Council state that:

“As part of the fit and proper section of the application you must provide details of any criminal records relating to the proposed licence holder and proposed manager (if applicable). Also details of any accreditation schemes or professional bodies which the applicant, proposed licence holder and proposed manager may belong to.”

https://www.westminster.gov.uk/media/document/new-hmo-licence-application

Penalties

If you let out or manage a HMO that needs a licence without having one and fail to follow the rules of a licence, you are committing an offence. This can lead to an unlimited fine if you are convicted or a civil penalty up to £30,000. Tenants may also have the right to get back up to 12 months rent if a landlord or agent has not obtained a licence.

HMO licensing policy

If you want to learn more about the HMO Licensing Policy (and read the full details on licensing requirements, documentation, exemptions, and enforcement) a summary of the scheme, fees and how to apply can be found here:

A word from us…

At Intra Capital Estates, we understand the complexities of the rental sector and are committed to supporting landlords in navigating these changes. Our team of experienced professionals is here to assist you with expert advice, tailored solutions, and comprehensive property management services.

If you have any questions or would like to learn more about HMO licencing, its implications, or our range of services, we invite you to get in touch. Our dedicated team is ready to address your inquiries and provide the assistance you need to thrive in the evolving rental landscape.

Stay informed, stay proactive, and let Intra Capital Estates be your trusted partner in the ever-changing world of property management.

Please note that the information provided in this blog post is intended for general guidance purposes only and should not be considered as legal advice. Visit gov.uk for more information.