Until recently, HMO landlords in Peterborough were required to hold an HMO licence only for properties with five or more tenants under the national mandatory HMO licensing scheme.
However, in January, Peterborough City Council introduced Additional Licensing for smaller HMO properties. If your HMO property is let to at least three tenants forming more than one household and sharing toilet, bathroom or kitchen facilities, then an HMO Additional Licence is now required.
Meanwhile, freeholders will need an Additional Section 257 HMO licence for a property with self-contained flats, in a building which doesn’t meet the standards of conversion required by the 1991 Buildings Regulations, where more than a third of the tenancies are let out on a shorthold tenancy agreement.
The HMO Additional Licensing decision
The introduction of the Additional Licensing Scheme is designed for use by councils such as Peterborough to further improve property standards and living conditions. It’s estimated that the change to the HMO licence structure in Peterborough will cover around 2,000 additional properties.
The initial decision to introduce Additional Licensing was confirmed last October and came into force in Peterborough on 26 January. It will now run for a five-year period ending 25 January 2031. Under the scheme, landlords must pay a £1,100 fee for the licence and comply with the licensing conditions. The fee is split into two parts. The first £588 is due at the point of application, while part B, a £512 payment, is due before the final licence is issued.
The scheme is being administered by Peterborough City Council in conjunction with Home Safe, who already work with the council on its Selective Licensing scheme. Applications are made directly through Home Safe’s website.
Who holds the licence
The licence is granted to the most appropriate person, which in most cases is the owner of the property, but may also be a leaseholder, manager or managing agent. If you propose a managing agent, they must have the power to collect rental income, establish and end tenancies, access all areas and authorise repairs and maintenance.
The application process
Applications for the HMO licence opened as soon as the scheme went live on 26 January. However, the approval process can be lengthy, with the licence granted or refused up to 26 weeks after the completed application has been received.
It is followed by a 28-day consultation period during which questions can be asked, decisions challenged or comments made. If you are planning to sell the property, the licence cannot be transferred. Instead, the new owner would need to obtain their own licence.
Penalties for non-compliance
Complying with the new licensing requirements is vital for smaller HMO landlords since, failure to do so could result in a civil penalty of up to £30,000 or an unlimited fine. You could also be ordered to repay up to 12 months’ rent and even lose management of the property entirely.
We Can Help
At Progressive Lets, we are experts in the rental market in the Peterborough area and help landlords find and manage properties within a 50-mile radius. Get in touch to find out more.
