House in multiple occupation (HMO)

How long will it take to process my application?

The length of the application process will vary as each case is different. Upon receipt of a valid application, we ideally aim to determine your application for a licence within three months of receipt.

How much will it cost?

Mandatory HMO licence

Mandatory HMO licence fees depend on the length of the licence, the number of habitable rooms and whether any discounts may apply. For an average sized property in Kensington and Chelsea, a five-year licence may cost up to £1600.

Additional HMO licence

Additional licensing fees are set at a flat rate of £1290 in total. The fee is payable in two parts; Part A £890 payable at time of application and Part B £400 payable on grant of the licence.

Discounts

• A discount of £200 can be applied for applicants who are accredited under the London Landlord Accreditation Scheme (LLAS/ATLAS), National Residential Landlords Association (NRLA) or other equivalent professionally recognised scheme, or who employs a named manager who is either Safeagent, or Propertymark approved and holds a Level 3 Award in Residential Letting and Property Management.
• A further discount of £30 per application will be applied for bulk applications for more than three HMO properties where the applications relate to the same interested persons as licence holder/persons involved in the management of the HMO.

Landlords will need to state their accreditation number to receive a discount. Landlords will not be eligible for a discount where they have failed to apply for a licence and only applied when the unlicensed HMO was brought to their attention by the council.

How long is the licence valid for?

Licences can be granted for up to five years. The Council may grant licences for shorter periods in certain circumstances. If your licence period is less than five years, you will be informed in writing why the Council has limited the period.

Can I let my property before receiving the licence? 

Yes, as long as you have submitted a valid application you can legally let the property.

Are there conditions attached to the licence?

There will be a number of conditions attached to licences, some of which are mandatory, as required by the Housing Act 2004, and others which are discretionary and decided by the Council. The mandatory conditions that apply to all licences are: 

• Licence holders must provide an annual gas safety certificate.
• Licence holders must ensure all electrical appliances and furniture are provided in a safe condition. 
• Licence holders must ensure that smoke alarms are installed in the HMO and are kept in proper working order and make declarations to this effect to the Council.
• Licence holders will be required to supply to occupiers of the HMO a written statement of terms on which they occupy the house and make declarations to this effect to the Council.

A full schedule of standard licensing conditions can be found below.

What criteria must an HMO meet for it to be licensed?

Anyone who owns or manages an HMO that must be licensed has to apply to the Council for a licence.

The Council must give a licence if it is satisfied that:

• The HMO is reasonably suitable for occupation by the number of people allowed under the licence.
• The proposed licence holder is a fit and proper person.
• The proposed licence holder is the most appropriate person to hold the licence.
• The proposed manager, if there is one, is a ‘fit and proper person’.
• The proposed management arrangements are satisfactory.
• The person involved in the management of the HMO is competent.
• The financial structures for the management are suitable.

What is meant by ‘reasonably suitable for occupation'?

For an HMO to be reasonably suitable for occupation for a certain number of people, it must meet standards relating to:

• Number, type and quality of bathrooms, toilets, washbasins and showers.
• Number, type and quality of food storage, preparation and cooking facilities.
• Suitable fire precautions.

What does a ‘fit and proper person’ mean?

The Council will carry out checks to make sure that the person applying for the licence is a fit and proper person. In deciding whether someone is fit and proper, the Council will consider:

• Any previous convictions relating to violence, sexual offences, drugs and fraud.
• Whether the proposed licence holder has broken any laws relating to housing or landlord and tenant issues.
• Whether the person has been found guilty of unlawful discrimination.
• Whether the person has previously managed HMOs that have broken any approved code of practice.

Does having a single tenancy for sharers exempt me from licensing?

No. There is no legal difference between single and joint tenancies for the purpose of HMO licensing. If there was, landlords could evade licensing by the simple expedient of changing the tenancy.

I have rooms under the permitted size, what should I do?

Please submit your application detailing all room sizes.  You do not need to take any action until we have assessed your application. There is a statutory minimum bedroom size of 6.51 m² for a single bedroom and 10.21 m² for a double. We have a legal duty to act where statutory bedroom size requirements are breached. Where room sizes fall short of our locally set RBKC standards, a property inspection will be carried out to determine the overall suitability of the property and relevant occupation limits.

Will I have to evict tenants if my property is unsuitable?

If the property is unsuitable for the number of tenants currently accommodated landlords will be issued a licence stating the number for which it is suitable. If this is more than currently accommodated, landlords may keep their existing tenants until the expiry of the current tenancy and then regularise the situation by not reletting that room or rooms. No new occupiers should be admitted until occupiers match the number permitted on the licence.

Are there any other penalties?

It is an offence if the landlord or person having control of, or managing, the property, fails to apply for a licence for a licensable property or breaches any licence condition. A Civil Penalty Notice may be issued or a criminal prosecution may be taken leading to an unlimited fine on conviction. Serious or multiple offences can result in a Banning Order.

Can a tenant claim back rent on an unlicensed property?

Yes. A tenant living in a property that should have been licensed, but was not, can apply to the Residential Property Tribunal to claim back any rent they have paid during the unlicensed period (up to a limit of 12 months). The Council can also reclaim any housing benefit that has been paid during the time the property was without a licence.