In deciding whether to grant or refuse an application the local authority must assess the suitability of the property to serve as an HMO and the suitability of the manager and licence holder of the property.
The local authority must be satisfied that the:[37]
house is reasonably suitable for occupation by no more than the maximum number in the application (or the number determined by the local authority) or can be made suitable
proposed licence holder is a 'fit and proper person' and the most appropriate person to be granted a licence
proposed manager is the person having control, or is an agent or employee of the person having control and is a 'fit and proper person'
proposed management arrangements are satisfactory
Suitability of the property
Before granting a licence, the local authority must be satisfied that the property meets the prescribed standards to be suitable for occupation by the proposed number of people (either the number on the application or a number specified by the local authority), or that the property can be made suitable by the imposition of certain conditions in the licence.[38]
The prescribed standards relate to the:[39]
number and suitability of the bathing and toilet facilities (where shared) and the provision of wash hand basins in individual rooms
suitability of the kitchen facilities for the number of people sharing them, and
provision of fire safety facilities and equipment
The local authority has the power to decide that a HMO it is not reasonably suitable for the proposed number of occupiers even if it meets the prescribed standards. It can issue guidance as to the standards it will normally expect to be met, for example in relation to bedroom size.
The local authority cannot impose additional mandatory standards which would fetter its discretion when considering the merits of a particular application.[40]
Suitability of section 257 HMOs
For section 257 HMOs, the local authority must satisfied that the common parts of the HMO or any flat within the HMO (other than a flat let on a long lease) meet the prescribed standards.[41] The standards in the regulations relate to the same amenities as for standard HMOs, but the facilities must be adequate for exclusive use by an individual household rather than for shared use.[42]
If a house becomes a section 257 HMO as a result of conversion works carried out on the house after 1 October 2007, any flat within that HMO to which a long lease was granted after that date is treated by the local authority as having no such lease unless the local authority is satisfied that either the:[43]
appropriate building standards have been met in relation to that flat
lease has been granted by a person other than the freeholder or head lessor of the whole of the HMO
Suitability of persons (fit and proper persons)
In deciding whether a person is 'fit and proper' to be a licence holder or the manager of an HMO, the local authority must have regard to any evidence available that the person has:[44]
committed any offences involving fraud, other dishonesty, violence, drugs, or any sexual offence that attracts notification requirements
acted other than in accordance with any code of practice approved under section 233 of Housing Act 2004
practised unlawful discrimination e.g. on grounds of sex, colour, race, ethnic or national origin or disability
contravened any provision under housing or landlord and tenant law
had a banning order made against them
To be taken into account, a wrongdoing must be relevant to the person's fitness to hold a licence and/or manage the property in question. When considering criminal offences, the local authority must only have regard to unspent convictions.
When dealing with an appeal against a local authority decision on the fitness of a landlord or manager to hold a licence for an HMO, the First-tier Tribunal must consider whether they were a 'fit and proper person' on the date on which the authority's decision was made, not whether they were fit and proper on the date of the appeal.[45]
Evidence can include that any person associated, or formerly associated, with the proposed licence holder or manager, has done any of the things listed above and it appears to the local authority that this is relevant to the question whether the proposed licence holder, or manager, is a fit and proper person.
The local authority must assume that unless there is evidence to the contrary that the person having control of the house is a more appropriate person to be the licence holder that a person without control of it.[46]
In relation to a section 257 HMO, when deciding if the proposed license holder is a 'fit and proper person' to be the license holder, the local authority must consider if that person has control of the HMO and the extent to which he has control over it. [47]
Suitability of management agreements
In deciding whether there are satisfactory management arrangements, the local authority must have regard to whether:[48]
any person to be involved in the management of the HMO is sufficiently competent
any person to be involved in the management (in addition to the manager) is a 'fit and proper person'
management structures and funding arrangements are suitable
