If you rent out a property for house in multiple occupancy (HMO), you may require a licence from your local authority.
If you rent out or intend to rent out a house in multiple occupation which is occupied by five or more people (who form more than one household) then you are required to have a licence.
A House in Multiple Occupation (HMO) is a building where the people who live there, do not live together as a single household. These properties are occupied by households or individuals who live independently of each other. The most common types of HMOs are:
Applications must be made to Stockton Council. Applications can be made online. Your application will not be processed until all the accompanying attachments and HMO licence fee are received.
The basic licence fee is £250 per unit of accommodation. To calculate the fee multiply the number of units of accommodation by £250, for example the licence fee for a HMO with 5 units of accommodation will be £1,250.
For landlords who are members of Stockton-on-Tees Borough Council's Landlord Accreditation Scheme the licence fee is discounted to £200 per unit of accommodation.
A unit of accommodation means a room such as a bedsit room, a self contained flat (that has been deemed to be part of a HMO), a bedroom in a shared house, flat or hostel.
The Council will undertake checks to ensure that the proposed licence holder and others managing the HMO (or any people associated with them) are 'fit and proper' people. In deciding whether someone is fit and proper the Council will take in to account:
Licences will be granted if:
We will consider the application and determine the number of households and/or persons allowed to occupy the HMO. In doing this we will consider the number of rooms available to be used for sleeping and/or for communal purposes. We also consider the sizes of these rooms and the number of baths and/or showers, toilets and kitchen amenities.
Along with meeting the fit and proper person criteria, the Council will need to be satisfied that the licence holder is the most appropriate person to hold the licence. The most appropriate person is the person having control of the HMO. The person having control is defined in section 263 of the Housing Act 2004 as 'the person who receives not less than two-thirds of the full net annual value of the premise' i.e. two-thirds of the rental income.
Along with meeting the fit and proper person criteria, the Council will need to be satisfied that the person managing the HMO is either the person having control of the HMO or is a person who is an employee or an agent of the person having control of the HMO.
In considering whether the proposed management arrangements for the HMO are satisfactory the Council will give consideration that any person involved in the management of the HMO has a sufficient level of competence to be involved. We will also carry out checks to ensure that any person who will be involved in the management of the HMO (other than the manager) is a fit and proper person to be involved and the Council will also check to see if the proposed management structures and funding arrangements are suitable.
Apply for a house in multiple occupancy licence. You should also use this application if an existing licence holder has changed.
The application must be submitted with several supporting documents. Your application will not be processed until all the required attachments are received.
The appropriate licence fee must also be paid electronically at the time of on-line application.
If you need help in completing your application then you can pay a fee to Stockton Council who will assist you with the application to ensure it is correct (this will include the production of scaled plan drawings of the property). The amount you will be required to pay will depend upon the number of units of accommodation - HMO licence fees.
You should not assume that you can proceed and operate your HMO if you have not received a decision from us. We must process your application fully before permission can be granted. We will let you know if your application has been successful within 120 days. Please contact us if you have not heard from us after 120 days has passed.
If your licence application is refused you can make representations to Stockton Council in the first instance. You may also appeal to a residential property tribunal.
If we still refuse your licence application then you can appeal to the First-tier tribunal – Property Chamber (Residential Property). This must be done within 28 days of the decision to refuse your application being made.
Manchester - Northern Region Address: Residential Property
Telephone: 0161 237 9491
Fax: 01264 785 128
If you would like to complain about the way your licence application has been dealt with please contact us in the first instance.
You may appeal to a residential property tribunal regarding conditions attached to a licence or any decision to vary or revoke a licence. Any appeal must be made within 28 days of the decision being made.
As a licence holder you may have cause to make a complaint regarding a number of matters. Listed below are the details of some of the organisations that may be able to help.
You may find that the following trade association is able to offer helpful advice - British Property Federation.