How Can Local Councils Find More Unlicensed HMOs?
The rise in houses in multiple occupation (HMOs) has helped meet the demand for affordable housing, but it has also led to an increase in unlicensed or illegal HMOs. These properties often fail to meet health and safety standards, putting tenants at risk. Local authorities and councils have a duty to enforce licensing laws and ensure that landlords comply with legal requirements. However, uncovering unlicensed HMOs can be a challenging task.
What Is An Unlicensed HMO?
An unlicensed HMO is a property that meets the criteria for an HMO but operates without the legally required license from the local authority. In the UK, HMOs are properties rented out to three or more tenants from two or more households who share facilities such as kitchens, bathrooms, or living spaces. Find out more in detail about what is considered a HMOby the government.
Licensing ensures the property meets legal standards for safety, size, and management to protect tenants.A property is considered an unlicensed HMO if the landlord has not applied for or obtained the required license, if the property does not meet the safety or amenity standards needed for licensing, or if a previously granted license has expired or been revoked.
Operating an unlicensed HMO is a serious offense. Shelter has a comprehensive guide to sanctions for letting unlicensed HMOs and breaching licence conditions.
Signs a Property May Be Operating as an Unlicensed HMO
Below are common indicators that a property may be operating without proper licensing.
High Tenant Turnover - Frequent comings and goings, with new faces regularly seen entering and leaving. Tenancy arrangements are usually unstable, with tenants staying for only a few weeks or months instead of committing to long-term leases.
Overcrowding - This often involves small rooms crammed with multiple beds or bunk beds, living areas such as lounges or dining rooms converted into sleeping quarters, and shared facilities like kitchens and bathrooms under strain. Tenants may complain about limited hot water, long waits for shared spaces, or insufficient cooking facilities.
Excessive Waste - An unusually large amount of waste outside a property. Overflowing bins, rubbish spilling onto streets, and frequent litter accumulation are all signs that more people are living in the property than is typical for a single household.
Multiple Names on Utilities or Mail - They often host multiple unrelated tenants, which can be evidenced by utility bills listing several names or excessive mail addressed to different individuals at the same property.
Poor Property Maintenance - Signs of neglect include exterior issues such as broken windows, peeling paint, overgrown gardens, or damaged doors. Inside, tenants or neighbours might report damp, mold, broken fixtures, or pest infestations.
Noise Complaints - Unlicensed HMOs often generate noise complaints due to loud parties or gatherings. General household noise may also increase with a higher number of occupants, such as music, footsteps, or loud conversations.
Parking Congestion - More vehicles parked nearby than usual, causing parking congestion for neighbours. In some cases, cars may block driveways, pavements, or other unauthorised areas.
Safety Concerns - Missing fire doors, smoke alarms, fire extinguishers, or emergency lighting are common issues. Other unsafe conditions may include poor ventilation, or inadequate sanitation facilities, which can pose health and safety risks. In 2022, a landlord couple and management company received fines and costs totalling £140,000 for running an unlicensed HMO where fire safety measures weren’t taken in an overcrowded share kitchen.
Why Identifying Unlicensed HMOs Matters
Unlicensed HMOs pose serious risks to tenants, local authorities, and communities. These properties often fail to meet legal safety and housing standards, leaving tenants exposed to unsafe, unhealthy, and sometimes exploitative conditions. Landlords operating without a license frequently neglect fire safety measures, adequate maintenance, and tenant protections, creating significant hazards.
For tenants, the dangers are clear. Missing fire safety features like smoke alarms or escape routes increase risks during emergencies, while overcrowding leads to cramped and unhealthy living conditions. Properties may also suffer from poor maintenance, with issues like damp, mold, unsafe wiring, or pest infestations going unaddressed. Vulnerable groups such as students or low-income renters are often targeted, facing unfair rent practices or intimidation.
The impact extends to the community as well. Overcrowded properties can cause noise disturbances and waste management issues, with overflowing bins and litter becoming common. Parking congestion and poorly maintained properties contribute to neighborhood decline, reducing property values and community morale.
How Can Local Authorities Find Unlicensed HMOs?
Leverage Data and Technology-By analysing council tax records and the electoral roll, they can spot properties with more occupants than expected, such as a small house registered with multiple individuals. Monitoring online platforms like SpareRoom, Gumtree, and Facebook Marketplace can reveal unregistered rental properties.
Collaborate with Local Stakeholders-Partnerships with community groups, utilities providers, and landlord associations are invaluable. Neighbours and tenants can report overcrowded or unsafe properties through anonymous systems. Utility companies can flag excessive usage. Universities and employers can assist by monitoring housing for students and migrant workers, common HMO tenants.
Conduct Proactive Investigations-Authorities should proactively inspect areas with high rental demand or known HMO clusters. Door-to-door checks and street surveys can uncover overcrowded properties. Inspectors can look for signs like bunk beds, shared facilities, or multiple satellite dishes.
Monitor Housing Market Trends-Tracking housing trends helps councils predict where unlicensed HMOs may emerge. Areas with rising rental demand, overcrowding, or demographic shifts—such as near universities or employment hubs—are more likely to attract unlicensed HMOs.
How Can OccupID by Marks Out Of Tenancy Help Tackle Unlicensed HMOs?
OccupID is an advanced data service designed to assist local authorities in identifying and addressing unlicensed HMOs. Using powerful data-driven insights, OccupID analyses key indicators to detect properties that are likely operating as HMOs. This innovative tool empowers councils to streamline their efforts, ensuring compliance and protecting tenants’ rights.
Whether you’re aiming to improve housing standards, safeguard tenant welfare, recover lost licensing revenue, or ensure fair enforcement of housing regulations, OccupID is your solution. Contact Marks Out Of Tenancy today to discover how our service can support your mission. Together, we can ensure safer, more compliant housing for all.