To read a general guide to licensing produced for HMO landlords in the West Midlands, please see 'HMO Licensing Guide for Landlords'.
There may be a good reason for an HMO with five or more tenants not to be licensed:
If none of the above applies then the HMO should be licensed. There are very serious consequences for not doing so, as detailed below.
The Council may prosecute the person(s) in control of the HMO i.e. the landlord or the agent. If found guilty, an unlimited fine may be imposed and the council will seek to recover costs of any legal action.
The Council may decide to issue a Civil Penalty. A civil penalty is a financial penalty of up to £30,000 imposed by the Council on an individual or organisation as an alternative to prosecution for certain offences under the Housing Act 2004, and a breach of a banning order under the Housing and Planning Act 2016.
The Council may seek to recover any housing benefit paid for the period that the HMO remained unlicensed for up to a period of 12 months. Similarly, tenants may seek to recover rent paid for the same period where the landlord has been found guilty for operating a HMO without a licence.
If it does not appear to the Council that the HMO is likely to be licensed in the near future or that health and safety is an issue, the Council may apply for an interim management order that may be followed by a management order. This means that the Council will take control of the HMO and manage it.
If the Council has evidence to show that you have contravened housing law then it may decide to revoke your licence, or refuse to grant you a licence on the basis that you are not a fit and proper person.
Furthermore, if you are a licence holder or a manager of other HMOs then these licences could also be revoked. For the HMO to continue to operate you would have to make alternative arrangements for someone else to hold the licence and/or manage the HMO. There are restrictions on who this other person can be, and they would have to accept responsibility for complying with the conditions of licence.