Councils were given new powers to enforce licensing of houses in multiple occupation (HMOs) and guidance on bringing long-term empty dwellings back into use. Landlords failing to licence their HMOs can be prosecuted by councils and face fines of up to £20,000.
The new measures mean that if any HMO is occupied without a licence, a local housing authority has the power to seek an Order for the repayment of up to 12 months' Housing Benefit paid out while the property was let without a licence. Tenants can seek an Order to recover rent they paid while a licensable property was let to them without being licensed.
The guidance being issued to councils highlights the procedures they must follow in seeking authorisation from residential property tribunals to make Empty Dwelling Management Orders (EDMOs).
Housing Minister Baroness Andrews said the new measures strengthened the important reforms introduced by the Housing Act 2004: "We have given landlords three months to apply for an HMO licence without fear of penalty for not having done so. These new powers will strengthen the licensing provisions and offer further protection for tenants. They also mean decent landlords will see an end to unfair competition from those avoiding their responsibilities."
A house in multiple occupation is a property where three or more tenants who are not all members of the same household are sharing some or all of the living accommodation and/or amenities. Since 6 April 2006, any HMO must be licensed if it is on three or more storeys; is occupied by five or more tenants; or has two or more households.
Councils also have the discretion to designate areas within their district for additional licensing, requiring other HMOs to be licensed.
Baroness Andrews said that in the case of Empty Dwelling Management Orders, Residential Property Tribunals must consider the effect EDMOs would have on the rights of the property owner and take into account the interests of the community.
She said: "These are powers of last resort, where voluntary negotiations with owners have failed. Among the protections for owners is the fact the tribunal must be satisfied that:
There are ten exceptions in all, covering, amongst other things:
Greenwich Council appointed Apollo London, Greenwich Building Services and Makers UK to bring its homes up to the Decent Homes Standard by 2010. The contractors will regularly liaise to ensure cost reductions are achieved.
Lambeth Council submitted a late bid for inclusion on the Government's arm's length management programme. The development follows control of the Council switching to Labour, following last May's elections. It is reported that the Council needs £200 million to bring its 40,000 dwellings up to the Decent Homes Standard.
Southampton Council launched a new loan scheme, aimed at assisting people on low incomes to renovate their homes. Under the scheme, homeowners will not have to repay the interest free loans of up to £50,000 until their property is sold.
Southwark Council has been given the green light by the Government to offer secure tenants the chance to buy part of their property. The Council is the first in the country to be allowed to run the Social HomeBuy scheme, where tenants can buy a percentage of their property and continue to pay a council rent on the remainder.
The Council has also secured agreement with the Government to be able to spend some of the resulting capital receipts to bring the rest of the council stock up to Decent Homes Standard. The remainder will go on initiatives to increase Southwark's stock of social housing.