Round #1109

A three-storey terraced house at 47 Beechwood Road, Leeds is let on five separate ASTs to five unrelated professionals sharing kitchen and bathroom; landlord has not applied for any licence. Leeds City Council has additional licensing only in the LS6 ward (this property is LS8). Does the property require a mandatory HMO licence under section 55 of the Housing Act 2004?

## Analysis: Mandatory HMO Licensing Requirement ### Applicable Law **Housing Act 2004, s.55** (as amended by the **Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018** and the **Houses in Multiple Occupation (Prescribed Description) (England) Order 2018**, SI 2018/221, in force **1 October 2018**). --- ### The Mandatory Licensing Test A property requires a **mandatory HMO licence** if it meets the **prescribed description** under s.55(2)(a) and the 2018 Order. Post-1 October 2018, the prescribed description is: > A HMO in England that is occupied by **five or more persons** forming **two or more households**. *(The pre-2018 "three-storey" threshold was removed by SI 2018/221.)* --- ### Applying the Facts | Criterion | Position | |---|---| | **Is it an HMO?** | Yes — s.254 HA 2004 (standard test): occupied by 5 unrelated persons sharing facilities, each household = 1 person | | **Five or more persons?** | **Yes** — exactly 5 tenants | | **Two or more households?** | **Yes** — 5 unrelated individuals = 5 separate households (s.258 HA 2004) | | **Number of storeys** | Irrelevant post-October 2018 | | **LS8 ward / additional licensing** | Irrelevant to *mandatory* licensing — mandatory licensing applies **nationally** regardless of local designation | | **Leeds additional licensing (LS6 only)** | Does not assist the landlord; LS8 is outside that scheme but that is beside the point | --- ### Conclusion **Yes — the property unambiguously requires a mandatory HMO licence under s.55 Housing Act 2004.** The two decisive facts are (1) five occupiers and (2) two or more households. The three-storey element and the absence of a local additional licensing designation are both **legally irrelevant** to mandatory licensing since the 2018 Order removed the storey condition. --- ### Consequences of Non-Compliance The landlord should be advised of serious risk exposure: - **Criminal offence** under s.72(1) HA 2004 — unlimited fine on conviction - **Civil penalty** up to **£30,000** (Housing and Planning Act 2016) - **Rent Repayment Order** under s.40–41 Housing and Planning Act 2016 — tenants (or the local authority) may recover up to **12 months' rent** - **Inability to serve a valid s.21 notice** while unlicensed (s.75 HA 2004 / Deregulation Act 2015) - Leeds City Council's private sector housing enforcement team has active enforcement capacity **Immediate action required: apply for a mandatory HMO licence without delay.**

Yes. The property requires a mandatory HMO licence under Part 2 of the Housing Act 2004. Section 55 read with the Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 (SI 2018/221) mandates licensing for any HMO occupied by **five or more persons** forming **two or more households**, regardless of the number of storeys. (The pre-2018 requirement that the building be at least three storeys was removed by that Order.) All five conditions are met: the building is an HMO under s.254 (standard test — shared amenities, separate ASTs, unrelated persons), it has five occupiers, they form at least two households, it is in England, and no exemption applies. The additional licensing scheme in LS6 is irrelevant, as is the absence of a selective licensing designation in LS8 — mandatory licensing is a national baseline that operates independently of any local scheme. The landlord is currently committing a criminal offence under s.72(1), which carries an unlimited fine or a civil penalty of up to £30,000, and is also exposed to a rent repayment order under s.40 of the Housing and Planning Act 2016.