Introduction
The purpose of the report is to provide information in relation to the HMO Licensing Scheme 2021 for the financial year 2022-23. This scheme was introduced in June 2021 following a statutory consultation exercise which was carried out in autumn 2020. The scheme is due to end in June 2026.
Feedback received during the consultation exercise highlighted the need to report regularly throughout the scheme on progress.
Background
The Council has operated HMO licensing since 2006, although initially this was restricted to mandatory licensing, i.e. 3 storey HMOs containing 5 or more tenants. However, in 2011 the Council became the first in the country to introduce a citywide additional HMO licensing scheme which meant that every HMO required a licence to operate.
The Council have always been clear that Additional HMO Licensing in Oxford will be used to improve the HMO stock in the city, this continues to be a significant undertaking by the Council.
The overall purpose of the licensing scheme remains the same as it was when it was first introduced in 2011, that is to: ‘alleviate the housing situation by setting and maintaining minimum standards across the city in the most vulnerable sector of Oxfords private rental market’.
This is also a major contributing factor to the Councils Corporate aim to “Deliver more affordable housing” by improving conditions in the private rented sector in the city.
HMOs
HMOs provide a significant amount of accommodation in Oxford and form an important and valuable part of the Housing market. However the property conditions and management practices associated with them have caused concerns for many years. The problems associated with living in a HMO have been well documented and are well known to professionals working in the sector. Whilst it is clear that there have been improvements made to HMOs since large scale licensing commenced, the experience remains that some of the worst conditions continue to be present in the HMO stock, especially those found lacking a HMO licence.
Licensing of HMOs
The Council operates a HMO licensing scheme which is citywide and covers all HMOs i.e. those occupied by 3 or more persons and also includes properties converted into self-contained flats where the conversion work was not carried out in accordance with the Building Regulations 1991.
The Council have, since licensing was first introduced in 2006, undertaken an inspection of the HMO prior to the licence being issued. These initial inspections ensure that one of the critical aims of the scheme, to improve HMO stock conditions, is being met.
HMO licensing in Oxford is both a reactive and a proactive service. Inspections of HMOs are integral to the licensing process both initially and with follow up inspections to check compliance with the licence conditions. The council also investigates service requests from HMO occupiers and neighbours as well as providing help and assistance to landlords. The council uses a variety of data sources to identify and investigate cases where HMOs are suspected of operating without a HMO licence and when an unlicensed property is discovered a robust approach is always taken with a number of cases resulting in the landlord receiving a financial penalty.
Processing HMO Applications
The landlord/owner has the responsibility for submitting a valid application for a HMO licence. The council does operate a reminder system for renewals, but this is not a statutory requirement and is an example of the council improving the customer experience, so whilst it can be helpful, the reminder should not be the sole prompt for the landlord to apply. The council has found that even after a number of years of licensing operating in the city, there can be problems with landlords failing to submit a licence application in a timely manner.
Since the introduction of HMO licensing in Oxford, HMO properties have only been issued a licence following a full inspection. As part of the application process, inspections inform licence conditions with time scales set for completion proportional to the health and safety risk to the occupants. A licence is then issued for one year to ensure the landlord completes any required work and complies with standard conditions, such as sending in the gas safety certificate annually. During this year, further inspections are then made to check compliance with the conditions set on each licence. In recent years the council has encouraged the submission of photographic evidence of completed works where appropriate to increase the efficiency of the overall process. Whenever an initial inspection or compliance inspection is made this is arranged by prior appointment to ensure that time is not wasted through lack of access to the property.
When renewal applications are received for existing HMO properties, a decision is made as to whether or not the landlord has demonstrated compliance. If it has not been demonstrated, the landlord is restricted to a one year licence and will likely incur the higher renewal fee as further checks will be made by the council to check compliance.
Licence conditions
Each HMO licence is granted with conditions. There are a number of conditions which must be included with every HMO licence granted, these include conditions relating to such matters as gas safety, electrical appliances, furniture, smoke alarms and details of the occupants. Since October 2018 all licences have also been required to include conditions regarding minimum room sizes and waste disposal. These are applied by all Councils across England and Wales and are often referred to as the ‘mandatory conditions’.
The Licensing and Management of Houses in Multiple Occupation and Other Houses (Miscellaneous Provisions) (England) Regulations 2006 Schedule 3 sets out the prescribed standards (minimum standards) for HMOs. The Council has an adopted Amenity and Facility Guide to expand on the prescribed standards and outlines what the council considers as appropriate and necessary facilities. This guide was reviewed in 2018, in consultation with landlords and agents with the latest version published in 2019. A guide ensures consistent standards and allows landlords, agents and tenants to understand the standards they can expect in HMOs. Decisions regarding deviations from the prescribed guidance are made on a case by case basis.
Applicants can make representations to the council concerning the conditions that are proposed to be applied to a HMO licence before it is granted in year 2 168 representations were received of these 59% were accepted in full, 18% were partially accepted and 29% were rejected. Where a representation is rejected the applicant can appeal to the First Tier Tribunal, this did not happen in year 2 of the scheme.
