Successful appeals against HMO licence conditions

Wednesday, November 6th, 2024 - By Richard Tacagni, MD, London Property Licensing

When it comes to HMO licensing, I always stress to clients the importance of checking what HMO licence conditions have been imposed. 

In my opinion, there are only two options guaranteed to achieve compliance. Read and understand all the licence conditions and comply with them in full, or actively challenge any disputed conditions. 

There are two ways to challenge licence conditions. 

The first is when the notice of intent of approve the licence is issued. At that point, the licence holder and all relevant parties will be given at least 14 days to submit a written representation. I have described the process in more detail here. This is one of the most critical parts of the licensing process and must be taken seriously. In my experience, councils often adjust licence conditions in response to constructive and well considered representations.

The second is when the licence is granted. At that point, the licence holder and all relevant parties have 28 days to accept the conditions or lodge an appeal with the First-tier Tribunal. This is not a step to be taken lightly. I would always recommend seeking professional or legal advice before deciding to appeal. 

Whilst there is third way, it is one to avoid at all costs. It involves not reading the conditions and not knowing what requirements have been imposed. Alternatively, knowing what the conditions are but taking no steps to comply and hoping the council don’t notice. Adopting this approach carries a high risk of civil financial penalties or a summons and a trip to the Magistrates Court.

Licensing a small portfolio of properties in Lambeth  

In late 2021, I was instructed to prepare additional licence applications for a small portfolio of shared flats in Lambeth. All properties were inspected and licence applications submitted in early 2022. 

The first draft licences were issued 12 to 18 months later. In each case, representations were submitted requesting changes to the council’s standard conditions. 

Unfortunately, each representation was rejected and final licences started being issued in Summer 2023. This led to four appeals being lodged with the First-tier Tribunal. Other licence applications submitted by the same client remained on hold pending the outcome of the appeal.

One of the advantages of lodging an appeal is the space and time it creates for both parties to discuss issues and either resolve matters completely or narrow the issues in dispute. If agreement is not reached, each party must prepare a bundle of documents and a Judge will hear the appeal at a face to face hearing or a paper determination.

In this case, the informal discussions were fruitful and constructive. Senior council officers listened to the concerns raised and agreed to make changes. The week before the hearing, in February 2024, final agreement was reached and the appeals were settled via a Consent Order which I prepared.

Following conclusion of the appeals, Lambeth Council reissued the licences with the amended conditions. All other properties within my client’s portfolio were also licensed with the same conditions added.

What were the disputed issues?

The appeals concerned a myriad of issues which I won’t list in full. 

Whilst some licence conditions were reasonable and appropriate, others contained factual errors, were contradictory, or misapplied mandatory conditions found in Schedule 4 of the Housing Act 2004.

There were also some rather odd, and onerous, licence conditions. For example, mandating water saving devices, mandating compliance with C3 recommendations on a satisfactory Electrical Installation Condition Report (EICR) and making the licence holder responsible for infectious disease control.

There were other areas where we were able to suggest improved wording to make it clearer to all parties what legal requirements were being imposed. 

Second client with similar concerns

In late 2023, I was approached by another client who had submitted his own licence applications for shared accommodation in Lambeth. He was equally concerned about the onerous and excessive set of licence conditions on his final licences.

This led to a further three appeals being submitted between late 2023 and March 2024. With the first appeal settled, I was able to negotiate another three Consent Orders to apply the same amended conditions to these properties. 

This was a good outcome that saved both my client, and the council, considerable time, money and stress through prompt resolution.

Bringing benefits for all Lambeth landlords

With all appeals resolved and a good working relationship maintained, these appeals have benefitted many more landlords.

Since the first appeal was concluded earlier this year, Lambeth Council have been applying a more streamlined, pragmatic and achievable set of licence conditions to all new HMO licences issued. In that respect it’s a win-win and these appeals have helped to support better regulation of the private rented sector.

Case references:

LON/00AY/HML/2023/0025
LON/00AY/HML/2023/0030
LON/00AY/HML/2023/0031
LON/00AY/HML/2024/0011
LON/00AY/HML/2023/0041
LON/00AY/HML/2024/0009
LON/00AY/HML/2024/0024

The author of this blog, Richard Tacagni is MD at London Property Licensing and can be contacted here. He represented both clients and successfully resolved all seven First-tier Tribunal appeals.

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