Housing Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Housing Bill

Housing Bill
Part 2 — Licensing of houses in multiple occupation
34

(3)
The authority may, in particular, require the application to be accompanied by
a fee fixed by the authority.
(4)
The power of the authority to specify requirements under this section is subject
to any regulations made under subsection (5).
(5)
The appropriate national authority may by regulations make provision about
5
the making of applications under this section.
(6)
Such regulations may, in particular—
(a)
specify the manner and form in which applications are to be made;
(b)
require the applicant to give copies of the application, or information
about it, to particular persons;
10
(c)
specify the information which is to be supplied in connection with
applications;
(d)
specify the maximum fees which are to be charged (whether by
specifying amounts or methods for calculating amounts);
(e)
specify cases in which no fees are to be charged or fees are to be
15
refunded.
(7)
When fixing fees under this section, the local housing authority may (subject to
any regulations made under subsection (5)) take into account—
(a)
all costs incurred by the authority in carrying out their functions under
this Part, and
20
(b)
all costs incurred by them in carrying out their functions under Part 4
in relation to HMOs (so far as they are not recoverable under or by
virtue of any provision of that Part).
53
Grant or refusal of licence
(1)
Where an application in respect of an HMO is made to the local housing
25
authority under section 52, the authority may either—
(a)
grant a licence in accordance with subsection (2), or
(b)
refuse to grant a licence.
(2)
If the authority are satisfied as to the matters mentioned in subsection (3), they
may grant a licence either—
30
(a)
to the applicant, or
(b)
to some other person, if both he and the applicant agree.
(3)
The matters are—
(a)
that the house is reasonably suitable for occupation by not more than
the maximum number of households or persons mentioned in
35
subsection (4) or that it can be made so suitable by the imposition of
conditions under section 56;
(b)
that the proposed licence holder—
(i)
is a fit and proper person to be the licence holder, and
(ii)
is, out of all the persons reasonably available to be the licence
40
holder in respect of the house, the most appropriate person to
be the licence holder;
(c)
that the proposed manager of the house is either—
(i)
the person having control of the house, or
(ii)
a person who is an agent or employee of the person having
45
control of the house;

Housing Bill
Part 2 — Licensing of houses in multiple occupation
35

(d)
that the proposed manager of the house is a fit and proper person to be
the manager of the house; and
(e)
that the proposed management arrangements for the house are
otherwise satisfactory.
(4)
The maximum number of households or persons referred to in subsection
5
(3)(a) is—
(a)
the maximum number specified in the application, or
(b)
some other maximum number decided by the authority.
(5)
Sections 54 and 55 apply for the purposes of this section.
54
Tests as to suitability for multiple occupation
10
(1)
The local housing authority cannot be satisfied for the purposes of section
53(3)(a) that the house is reasonably suitable for occupation by a particular
maximum number of households or persons if they consider that it fails to
meet prescribed standards for occupation by that number of households or
persons.
15
(2)
But the authority may decide that the house is not reasonably suitable for
occupation by a particular maximum number of households or persons even if
it does meet prescribed standards for occupation by that number of
households or persons.
(3)
In this section “prescribed standards” means standards prescribed by
20
regulations made by the appropriate national authority.
(4)
The standards that may be so prescribed include—
(a)
standards as to the number, type and quality of—
(i)
bathrooms, toilets, washbasins and showers,
(ii)
areas for food storage, preparation and cooking, and
25
(iii)
laundry facilities,

which should be available in particular circumstances; and
(b)
standards as to the number, type and quality of other facilities or
equipment which should be available in particular circumstances.
55
Tests for fitness etc. and satisfactory management arrangements
30
(1)
In deciding for the purposes of section 53(3)(b) or (d) whether a person (“P”) is
a fit and proper person to be the licence holder or (as the case may be) the
manager of the house, the local housing authority must have regard (among
other things) to any evidence within subsection (2) or (3).
(2)
Evidence is within this subsection if it shows that P has—
35
(a)
committed any offence involving fraud or other dishonesty, or violence
or drugs;
(b)
practised unlawful discrimination on grounds of sex, colour, race,
ethnic or national origins or disability in, or in connection with, the
carrying on of any business;
40
(c)
contravened any provision of the law relating to housing or of landlord
and tenant law; or
(d)
acted otherwise than in accordance with any applicable code of practice
approved under section 171.

Housing Bill
Part 2 — Licensing of houses in multiple occupation
36

(3)
Evidence is within this subsection if—
(a)
it shows that any person associated or formerly associated with P
(whether on a personal, work or other basis) has done any of the things
set out in subsection (2)(a) to (d), and
(b)
it appears to the authority that the evidence is relevant to the question
5
whether P is a fit and proper person to be the licence holder or (as the
case may be) the manager of the house.
(4)
For the purposes of section 53(3)(b) the local housing authority must assume,
unless the contrary is shown, that the person having control of the house is a
more appropriate person to be the licence holder than a person not having
10
control of it.
(5)
In deciding for the purposes of section 53(3)(e) whether the proposed
management arrangements for the house are otherwise satisfactory, the local
housing authority must have regard (among other things) to the considerations
mentioned in subsection (6).
15
(6)
The considerations are—
(a)
whether any person proposed to be involved in the management of the
house has a sufficient level of competence to be so involved;
(b)
whether any person proposed to be involved in the management of the
house (other than the manager) is a fit and proper person to be so
20
involved; and
(c)
whether any proposed management structures and funding
arrangements are suitable.
(7)
Any reference in section 53(3)(b)(i) or (ii) or subsection (4) above to a person
having control of the house, or to being a person of any other description,
25
includes a reference to a person who is proposing to have control of the house,
or (as the case may be) to be a person of that description, at the time when the
licence would come into force.
56
Licence conditions
(1)
A licence may include such conditions as the local housing authority consider
30
appropriate for regulating all or any of the following—
(a)
the management, use and occupation of the house concerned, and
(b)
its condition and contents.
(2)
Those conditions may, in particular, include (so far as appropriate in the
circumstances)—
35
(a)
conditions imposing restrictions or prohibitions on the use or
occupation of particular parts of the house by persons occupying it;
(b)
conditions requiring steps to be taken with a view to controlling the
behaviour of persons occupying or visiting the house;
(c)
conditions requiring facilities and equipment to be made available in
40
the house for the purpose of meeting standards prescribed under
section 54;
(d)
conditions requiring such facilities and equipment to be kept in repair
and proper working order;
(e)
conditions requiring, in the case of any works needed in order for any
45
such facilities or equipment to be made available or to meet any such
standards, that the works are carried out within such period or periods
as may be specified in, or determined under, the licence;

Housing Bill
Part 2 — Licensing of houses in multiple occupation
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(f)
conditions requiring the licence holder or the manager of the house to
attend training courses in relation to any applicable code of practice
approved under section 171.
(3)
A licence must include the conditions required by Schedule 4.
(4)
As regards the relationship between the authority’s power to impose
5
conditions under this section and functions exercisable by them under or for
the purposes of Part 1 (“Part 1 functions”)—
(a)
the authority must proceed on the basis that, in general, they should
seek to identify, remove or reduce category 1 or category 2 hazards in
the house by the exercise of Part 1 functions and not by means of licence
10
conditions;
(b)
this does not, however, prevent the authority from imposing licence
conditions relating to the installation or maintenance of facilities or
equipment within subsection (2)(c) above, even if the same result could
be achieved by the exercise of Part 1 functions;
15
(c)
the fact that licence conditions are imposed for a particular purpose
that could be achieved by the exercise of Part 1 functions does not affect
the way in which Part 1 functions can be subsequently exercised by the
authority.
(5)
A licence may not include conditions imposing restrictions or obligations on a
20
particular person other than the licence holder unless that person has
consented to the imposition of the restrictions or obligations.
(6)
A licence may not include conditions requiring (or intended to secure) any
alteration in the terms of any tenancy or licence under which any person
occupies the house.
25
57
Licences: general requirements and duration
(1)
A licence may not relate to more than one HMO.
(2)
A licence may be granted before the time when it is required by virtue of this
Part but, if so, the licence cannot come into force until that time.
(3)
A licence—
30
(a)
comes into force at the time that is specified in or determined under the
licence for this purpose, and
(b)
unless previously terminated by subsection (7) or revoked under
section 59, continues in force for the period that is so specified or
determined.
35
(4)
That period must not end more than 5 years after—
(a)
the date on which the licence was granted, or
(b)
if the licence was granted as mentioned in subsection (2), the date when
the licence comes into force.
(5)
Subsection (3)(b) applies even if, at any time during that period, the HMO
40
concerned subsequently ceases to be one to which this Part applies.
(6)
A licence may not be transferred to another person.
(7)
If the holder of the licence dies while the licence is in force, the licence ceases
to be in force on his death.

Housing Bill
Part 2 — Licensing of houses in multiple occupation
38

(8)
However, during the period of 3 months beginning with the date of the licence
holder’s death, the house is to be treated for the purposes of this Part and Part
3 as if on that date a temporary exemption notice had been served in respect of
the house under section 51.
(9)
If, at any time during that period (“the initial period”), the personal
5
representatives of the licence holder request the local housing authority to do
so, the authority may serve on them a notice which, during the period of 3
months after the date on which the initial period ends, has the same effect as a
temporary exemption notice under section 51.
(10)
Subsections (6) to (8) of section 51 apply (with any necessary modifications) in
10
relation to a decision by the authority not to serve such a notice as they apply
in relation to a decision not to serve a temporary exemption notice.
Variation and revocation of licences
58
Variation of licences
(1)
The local housing authority may vary a licence—
15
(a)
if they do so with the agreement of the licence holder, or
(b)
if they consider that there has been a change of circumstances since the
time when the licence was granted.
For this purpose “change of circumstances” includes any discovery of new
information.
20
(2)
Subsection (3) applies where the authority—
(a)
are considering whether to vary a licence under subsection (1)(b); and
(b)
are considering—
(i)
what number of households or persons is appropriate as the
maximum number authorised to occupy the HMO to which the
25
licence relates, or
(ii)
the standards applicable to occupation by a particular number
of households or persons.
(3)
The authority must apply the same standards in relation to the circumstances
existing at the time when they are considering whether to vary the licence as
30
were applicable at the time when it was granted.
This is subject to subsection (4).
(4)
If the standards—
(a)
prescribed under section 54, and
(b)
applicable at the time when the licence was granted,
35

have subsequently been revised or superseded by provisions of regulations
under that section, the authority may apply the new standards.
(5)
A variation made with the agreement of the licence holder takes effect at the
time when it is made.
(6)
Otherwise, a variation does not come into force until such time, if any, as is the
40
operative time for the purposes of this subsection under paragraph 35 of
Schedule 5 (time when period for appealing expires without an appeal being
made or when decision to vary is confirmed on appeal).

Housing Bill
Part 2 — Licensing of houses in multiple occupation
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(7)
The power to vary a licence under this section is exercisable by the authority
either—
(a)
on an application made by the licence holder or a relevant person, or
(b)
on the authority’s own initiative.
(8)
In subsection (7) “relevant person” means any person (other than the licence
5
holder)—
(a)
who has an estate or interest in the HMO concerned (but is not a tenant
under a lease with an unexpired term of 3 years or less), or
(b)
who is a person managing or having control of the house (and does not
fall within paragraph (a)), or
10
(c)
on whom any restriction or obligation is imposed by the licence in
accordance with section 56(5).
59
Revocation of licences
(1)
The local housing authority may revoke a licence—
(a)
if they do so with the agreement of the licence holder;
15
(b)
in any of the cases mentioned in subsection (2) (circumstances relating
to licence holder or other person);
(c)
in any of the cases mentioned in subsection (3) (circumstances relating
to HMO concerned); or
(d)
in any other circumstances prescribed by regulations made by the
20
appropriate national authority.
(2)
The cases referred to in subsection (1)(b) are as follows—
(a)
where the authority consider that the licence holder or any other person
has failed to comply with a condition of the licence;
(b)
where the authority no longer consider that the licence holder is a fit
25
and proper person to be the licence holder; and
(c)
where the authority no longer consider that the management of the
house is being carried on by persons who are in each case fit and proper
persons to be involved in its management.
(3)
The cases referred to in subsection (1)(c) are as follows—
30
(a)
where the HMO to which the licence relates ceases to be an HMO to
which this Part applies; and
(b)
where the authority consider at any time that, were the licence to expire
at that time, they would, for a particular reason relating to the structure
of the HMO, refuse to grant a new licence to the licence holder on
35
similar terms in respect of it.
(4)
Subsection (5) applies where the authority are considering whether to revoke
a licence by virtue of subsection (3)(b) on the grounds that the HMO is not
reasonably suitable for the number of households or persons specified in the
licence as the maximum number authorised occupy the house.
40
(5)
The authority must apply the same standards in relation to the circumstances
existing at the time when they are considering whether to revoke the licence as
were applicable at the time when it was granted.
This is subject to subsection (6).
(6)
If the standards—
45
(a)
prescribed under section 54, and

Housing Bill
Part 2 — Licensing of houses in multiple occupation
40

(b)
applicable at the time when the licence was granted,

have subsequently been revised or superseded by provisions of regulations
under that section, the authority may apply the new standards.
(7)
A revocation made with the agreement of the licence holder takes effect at the
time when it is made.
5
(8)
Otherwise, a revocation does not come into force until such time, if any, as is
the operative time for the purposes of this subsection under paragraph 35 of
Schedule 5 (time when period for appealing expires without an appeal being
made or when decision to vary is confirmed on appeal).
(9)
The power to revoke a licence under this section is exercisable by the authority
10
either—
(a)
on an application made by the licence holder or a relevant person, or
(b)
on the authority’s own initiative.
(10)
In subsection (8) “relevant person” means any person (other than the licence
holder)—
15
(a)
who has an estate or interest in the HMO concerned (but is not a tenant
under a lease with an unexpired term of 3 years or less), or
(b)
who is a person managing or having control of that house (and does not
fall within paragraph (a)), or
(c)
on whom any restriction or obligation is imposed by the licence in
20
accordance with section 56(5).
Procedure and appeals
60
Procedural requirements and appeals against licence decisions
Schedule 5 (which deals with procedural requirements relating to the grant,
refusal, variation or revocation of licences and with appeals against licence
25
decisions) has effect for the purposes of this Part.
Enforcement
61
Offences in relation to licensing of HMOs
(1)
A person commits an offence if he is a person having control of or managing
an HMO which is required to be licensed under this Part (see section 50(1)) but
30
is not so licensed.
(2)
A person commits an offence if—
(a)
he is a person having control of or managing an HMO which is licensed
under this Part,
(b)
he permits another person to occupy the house, and
35
(c)
the other person’s occupation results in the house being occupied by
more households or persons than is authorised by the licence.
(3)
A person commits an offence if—
(a)
he is a licence holder or a person on whom restrictions or obligations
under a licence are imposed in accordance with section 56(5), and
40
(b)
he fails to comply with any condition of the licence.