U.K. Gov't Updates HMO Management Standards*

March 28, 2006

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Parliament introduced a government order to approve codes of practice for student accommodation as well new regulations that will exclude from mandatory licensing those halls of residence and other student accommodation that already comply with the codes.

Universities U.K./the Standing Conference of Principals and the Accreditation Network U.K. (ANUK)/Unipol Student Homes developed the codes, which were drafted from consultation with stakeholders, including the National Union of Students.

The codes of practice:

• The "Universities U.K./Standing Conference of Principals (SCOP) Code of Practice for the Management of Student Housing" relates to university-managed and controlled accommodation.
• The ANUK/Unipol "Code of Standards for Larger Developments for student accommodation managed and controlled by educational establishments," applies to accommodation managed and controlled by institutions of higher education.
• The ANUK/Unipol "Code of Standards for Larger Developments for student accommodation not managed and controlled by educational establishments" relates to accommodation managed and controlled by other bodies subject to HMO licensing.

HMO licensing exemptions will only be granted to colleges of higher and further education whose accommodation is specifically listed in the first two above mentioned codes. Commercial providers who comply with the third code will be subject to lower licensing fees since their voluntary compliance with the ANUK code should ensure high management standards, which should reduce the burden of local authorities having to manage their licensing arrangements.

The codes are part of a programme of private sector reforms designed to ensure all HMO landlords/managers responsible for three or more storeys, with five or more people in two or more households, have to apply to be licensed.

Students who rent in the private rented sector also will be protected by the Housing Act's HMOs licensing measures.

Housing Act 2004 reform measures include:

• Licensing of Houses in Multiple Occupation (HMOs) - Improves HMO controls, including mandatory licensing of some of the highest risk properties and maintains an adequate supply of rented accommodation.
• Management Standards for all HMOs - Sets new minimum HMO management standards.
• Selective Licensing – Assists councils with improving local communities by making licensing schemes for privately rented accommodation in areas suffering or likely to suffer from low housing demand or where anti-social behaviour is a significant and persistent problem.
• Special Interim Management Orders - Enables local authorities to make special interim management orders with the approval of the Residential Property Tribunal to tackle isolated, but serious problems of anti-social behaviour without having to make a selective licensing scheme.
• Empty Dwelling Management Orders - Provides councils with more powers to take over occupation of privately owned homes left empty for more than six months without good reason.

The Housing Acts provision to safeguard tenants' deposits will come into force in October.

Source: Office of the Deputy Prime Minister (ODPM).

*Headline revised Dec. 6, 2007 for clarification.