Agenda item

Chris Mordaunt - Team Manager (Housing Standards and Improvement) has been asked to provide an update on the topic of HMO’s and an understanding of the new licencing regulations to 3,000 HMO properties in Bath (3,500 across B&NES).

·  The timeline for landlords to comply with the regulations

• The powers that enforcement will provide
• How the licencing works and the cost, details on how many HMOs are already licenced.
• Information we have on the split between the HMOs for Students vs. Others
• How regularly will there be information about how the uptake in licencing is going and what effect there is on housing in the City from the new rules.

Chris Mordant, B&NES Team Manager - Housing Standards and Improvement was in attendance to offer advice and discuss the HMO licencing scheme.

• The new HMO Licencing Scheme that came into being on the 1^st January 2019 will help with a number of the common issues that occur with low standard accommodation in the city. This scheme will see all shared homes having to be licenced with B&NES Council and those found not to be complying will be committing a criminal offence and can face a fine of up to £30K.

• Properties that require a licence will pay £795 for a five year period (a £50 discount is offered if completed online), these receipts will fund administration and enforcement for the scheme. This scheme is not run for profit.

• There are presently 3,000 properties in the City of Bath, these are a properties occupied by three unrelated people (not from the same families) that are sharing household facilities. A further 500 larger properties in B&NES are also included where the number increases to five people sharing.

• It is understood that 2,600 of the properties in Bath are occupied by students; this information is from council tax records which show student exemptions.

• Once the application process has been introduced an enforcement policy will come into effect which will deliver strong measures against non-compliant landlords.

• The number of properties that are licenced will be reviewed regularly and annually reporting will be produced.

• The Council will be able to inspect properties and will target those that have not been inspected previously and will then move onto and revisit those we have visited before. We will be looking at the quality of the premises, how the property is managed, safety issues, management arrangements for overseas landlords. A fit and proper person needs to be available locally to manage any arrangements for the tenants.

• Other factors for consideration are: - criminal record checks, is the number of occupants correct for the property, are there fire safety measures in place and what management plan is in place for fixing broken items. The standards around waste storage, carbon monoxide detectors, waste location information, fire risk and property information will also be required through the licencing agreement.

• There will be a public register that will appear on the B&NES Council website, all HMOs will appear mapped on the section called My Council. The aim is for all HMOs to be licenced and listed by the end of 2019, presently we are in a period of adjustment where all HMOs are able to continue operating if the landlord is in the process of applying for a licence.

• One an inspection has been carried out on a property a licence can be issued; this may have conditions that need to be addressed by the landlord. Where there is a need to address urgent works these will be dealt with separately. Dependent on the risks follow up visits will be agreed.

• Any member of the public with concerns over a HMO can contact the Housing Standards Team and there will be a duty to investigate complaints. Advice to all tenants is to start by trying to sort out issues in the first instance with the landlord. The Housing Standards Team can be reached by telephone 01225 396444 or the website address is:- http://www.bathnes.gov.uk/services/housing/houses-multiple-occupation/licensing-houses-multiple-occupation

Questions and Comments:

Councillor Rob Appleyard – Thanked Chris for a useful update on a complex issue.

Councillor Rob Appleyard – Where a property is found to be a non-student property will details be shared with the council tax department?

Response:

Ø  We will share information on GIS mapping and council tax are able to see this.

Councillor Rob Appleyard – At what point are conditions met and the licence issued? Do adjustments that are requested ned to be completed before a licence is issued.

Response:

Ø  We are not able to withhold licences, our duty is to request any adjustments and revisit to see that these are being complied with.

Ø  We have allowed in our business model up to two additional visits for each property.

Alicia Lobo – The Student Union at the University of Bath has partnered with ‘marks out of tenancy’ https://www.marksoutoftenancy.com/ to launch in Bath. This scheme could compliment the work on HMOs and the Su are happy to work together on issues.

Response:

Ø  Councillor Shaun Stephen-McGall fed back that the SCP has seen a presentation on work that was carried out by Bath Spa University; it may be helpful to see what findings were picked up previously.

Councillor Shaun Stephen-McGall explained that the 2,600 HMOs in Bath are exempt from paying council tax since the rebate was removed by the government three years ago. The city has missed out on £4.2 million in lost revenue because of the success of the universities, there needs to be a balanced approach that sees a bigger contribution from the universities. The most vulnerable in the city are losing out and there needs to be better understanding of this within our communities.

Response:

Ø  Rosie Phillips agreed that the most vulnerable people are missing out.

Councillor Shaun Stephen-McGall felt that the licencing scheme delivers a baseline standard; this should be ratcheted up in the future by planning ahead and setting out aspirations.

A member of the public asked why we are not looking at the 600 Air BnB’s in Bath for inclusion.

Response:

Ø  The scheme (legislation) only covers properties that are main residences.

A member of the public asked what happens if a property is a HMO but is being run as an Air BnB and what will be in place to pick up on this issue?

Response:

Ø  We take on board intelligence that is gathered through neighbours, tenants and advertisements that are placed. If a property is represented then a criminal offence is committed which can carry up to a £30,000 fine.

Councillor Michelle O’Doherty asked how the council will reach landlords that live away from their properties.

Response:

Ø  Publicity of the scheme has taken place through the press on three occasions, the website and direct mailings of postcards to every household in Bath. We recognise that people can miss the message and are working with people to get them to apply ASAP during the transitional period.

Ø  There will be follow ups made to those properties that are hard to reach. A point will come where a cut-off point to the introduction finishes.

Councillor Dine Romero – What is the tipping point when a landlord becomes not fit and proper to hold a licence.

Response:

Ø  The Council have a duty to follow up when there are issues that require follow up work to be carried out. We will be taking on landlords by asking questions and providing advice, when works that are set out are ignored we will issue a notice, prosecutions will follow where landlords fail to work on the issues that are set out.

Ø  Where a landlord is found to be unsuitable for reasons such as criminal records that show them to be unsuitable to hold a licence. Where a judgement is made on a landlord being unsuitable they would need to move responsibilities to a managing agent or suitable adult.

Councillor Dine Romero – Students may we concerned about reporting there landlord as they fear being evicted.

Response:

Ø  Landlords are not allowed to evict tenants because the fail to get a licence.

Jeremy Boss – Are there any concerns about disruption to the market, especially two bedroom flats? 

Response:

Ø  There were some responses raised when consultation was carried out. The market is strong and it is unlikely to see many issues.

Ø  We have heard from one landlord that will withdraw from the market, less than ten properties have said they are considering what they are going to do.

Cllr Bob Goodman commented that should a HMO revert back to a family home then that is not a bad thing.

Cllr Bob Goodman explained that the issues raised by Cllr Shaun Stephenson-McGall were valid and over the last three years has been a lot of work carried out to show that the Council does need to receive the missing student accommodation council tax contributions.

Councillor Colin Blackburn explained that there are areas outside of Bath that are seeing the Air BnB market disrupted and there are properties which have returned to the regular rental market.