URL: https://www.southampton.gov.uk/modernGov/ieDecisionDetails.aspx?ID=3540

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: To consider the report of the Cabinet Member for Housing Operations seeking approval for the designation of an additional licensing scheme for Houses in Multiple Occupation (HMOs) for the wards Banister and Polygon, Bevois, Bargate, Portswood, Shirley, Bassett, Freemantle, Shirley and Millbrook. 

Content: To consider the report of the Cabinet Member for Housing Operations seeking approval for the designation of an additional licensing scheme for Houses in Multiple Occupation (HMOs) for the wards Banister and Polygon, Bevois, Bargate, Portswood, Shirley, Bassett, Freemantle, Shirley and Millbrook.  (i)  To note the outcome of the public consultation, which has taken place in accordance with the Housing Act 2004 and to consider and take into account the consultation responses in making a decision on this matter. (ii)  Subject to (i) above to approve the designation for an additional HMO licensing scheme in Banister & Polygon, Bevois, Bargate, Portswood, Swaythling, Bassett, Freemantle, Shirley & Millbrook wards to take effect from September 2025 for five years. In which all houses in multiple occupation (HMOs) are to be licensed, apart from section 257 HMOs and buildings exempted by schedule 14 of the Housing Act 2004. (iii)  To delegate authority to the Executive Director for Resident Services, following consultation with the relevant cabinet member, to approve any changes to the Councils HMO licensing Policy, general conditions, fees & charges, procedures as amended and or extended as set out above required in connection with the said designation. A key recommendation from the 2023/24 Council Scrutiny enquiry into the private rented sector (How do we get a better deal for private renters in Southampton) was that a new additional HMO licensing area should be designated in the city. This was to ensure that the council was utilising the full range of enforcement powers available to raise and maintain standards in this sector.   Southampton City Council has previously designated three additional HMO licensing schemes within the city since 2013. These have covered the following wards: Bevois, Bargate, Portswood, Swaythling, Freemantle, Shirley, Bassett & Millbrook. Schemes once designated can only run for a maximum of five years, and on expiry cannot be renewed. The previous schemes have ensured that the majority of HMOs within Southampton fall under a licensing scheme and have to meet prescribed local standards covering, management, safety (& Fire safety) & amenities. These schemes have ensured that the HMO stock within the city is safe and well managed, reducing numbers of complaints from both tenants and nearby residents.   The proposed new scheme will require that all HMO properties (other than those covered by the Mandatory Licensing Scheme & HMOs governed by S257 of the Housing Act 2004) with three or more occupiers from two or more households, are licensed and must comply with any licence conditions including conditions relating to standards for safety, amenities and waste set by Southampton City Council. This new designation must be approved by the Council before being implemented.   The previous additional HMO licensing schemes in the city resulted in over 3000 smaller HMOs being licensed. This had a very positive effect on the conditions of this type of property. Through licensing, Southampton City Council was able to deal more effectively with issues of poor property conditions, poor management and anti-social behaviour. Evidence from the previous scheme showed that licensing of these HMOs reduced complaints significantly.   The Council believes that a new additional HMO Licensing scheme in the city covering the wards where HMO density is highest, will provide a key tool to addressing management and conditions in the smaller HMOs.   An additional HMO licensing scheme ensures that HMOs not covered by the national Mandatory licensing scheme are licensed to the same standards. It also ensures that concerns and complaints about conditions and the impacts of the HMOs on their local community can be addressed effectively and promptly. Particularly in regards issues of noise nuisance, anti-social behaviour and waste. Complaints have been steadily increasing since the end of the last licensing scheme and issues can be more difficult to resolve without licence conditions in place.   Before any Additional HMO licensing scheme can be designated, the Housing Act 2004 requires that a public consultation on the proposals be carried out. The consultation has now been completed, and all reasonable steps have been taken to consult persons who are likely to be affected by the designation and representations have been considered.   The Public consultation ran from December 2024 to March 2025 and the full details of this are included in appendix 1. The consultation received 192 responses, and the overall position was that 86% of respondents were in favour of the scheme.   In relation to the proposed designation area (the wards to be covered) this received 84% approval. Whilst there were a handful of respondents that would prefer a city-wide scheme, the feedback suggests that the chosen wards are the ones where the scheme will have the most impact.   The proposed new scheme will see between 2500-3000 smaller HMOs and HMOs within private purpose-built student accommodation blocks be subject to HMO licensing. In addition to the mandatory HMO licensing scheme this would result in approximately 5000 of the Cities estimated 6-7000 HMOs being under a licensing regime.   Ensuring that the Executive Director for Resident Services has delegated authority under the officer scheme of delegation to determine and alter as necessary a scale of reasonable fees for the licensing of HMOs & for any changes required to the Councils HMO licensing general conditions, policy or procedures. This will help ensure its smooth implementation and management from September 2025. The Housing Act 2004 (section 56(2)) requires that before making a designation to extend HMO Licensing for a particular type of HMO, or for a particular area, a local authority must consider whether there are any other courses of action available to them that might provide an effective method of dealing with the problem or problems in question. A total of seven options were appraised. As follows; 1.  Manage without a scheme & carries out reactive inspection programme 2.  Voluntary landlord accreditation 3.  City wide Additional HMO licensing 4.  Utilise existing regulatory powers 5.  Interim Management Orders (IMOs) & Final Management Orders 6.  Selective licensing 7.  Await introduction of Renters Reform Act   (1) That the Council manages the issues associated with HMOs without an additional licensing scheme. The properties associated with the new designation approval have not been subject to any licensing since the previous schemes ended in October 2023. During this time there has been no proactive approach to deal with these properties and without a new scheme, problems associated with them cannot be as effectively or quickly addressed. Intervention would be solely based on complaint response or referral from other agencies. This option is reactive and relies on limited enforcement action to drive standards. The proposed new additional licensing scheme will enable a more proactive and comprehensive response and will significantly reduce complaints and problems associated with the high numbers of HMOs across this designated area.   (2) Landlord Accreditation schemes have a set of standards (or code) relating to the management or physical condition of different private rented Page 77 accommodation and recognise properties/landlords who achieve/exceed the requirements. There is no legal basis for accreditation, so all schemes are voluntary and a such many LAs do not offer such schemes. Southampton currently has an accreditation scheme for student housing (SASSH) operated by the universities. Any new scheme for other PRS properties would run alongside. Options for local schemes have been considered previously by Southampton City Council, but no schemes have ever been introduced. Overall, it is the experience of other LAs that accreditation does not capture the landlords and properties that require management.   (3) The Council could consider a city-wide scheme to cover all HMOs not captured by the Mandatory HMO licensing regime. However, there is currently insufficient evidence that there are sufficient numbers of HMOs within the other wards of the city and that these are poorly managed. The selected wards have all been subject to previous additional HMO licensing due to the numbers of HMOs and issues associated with them. The consultation responses also widely supported the proposed areas.         (4) The Council could solely rely on its existing regulatory powers under part 1 of the Housing Act 2004 & the Houses in Multiple Occupation (Management) Regulations 2009 to deal with issues resulting in poor management of these HMOs. However, without a licensing scheme in place the Council would only be providing a reactive response to issues arising from HMOs, whereas the licensing schemes permits a proactive approach to deal effectively with these HMOs. So, this would not be a favoured option to achieve the desired objectives.   (5) Interim Management Orders (IMOs) and Final Management Orders (FMOs). The Housing Act 2004 gives local authorities powers to use Management Orders for dealing with comprehensive and serious management failures & look to take over the management of the worst properties/worst landlords. Management orders are however resource intensive and expensive to set up & administer. They would need an agent to take on the management, again an additional cost to the Authority. Overall it doesn’t necessarily tackle the poor practices of rogue landlords.   (6) City wide or area based Selective licensing under part three of the Housing Act 2004. Under this power, LAs can designate all or a selected type of private rented properties under a licensing scheme. Such a scheme could cover some or all of the Cities private rented stock and provide a level playing field in terms of property condition and management. This is a comprehensive and potentially significant programme to deliver and whilst this was put forward for consideration following the scrutiny enquiry in 2023/34 (How to get a better deal for private renters in Southampton) it requires evidence to demonstrate that the legal threshold for designating a scheme exists, such as that there is low housing demand, significant and persistent problems caused by anti-social behaviour, poor housing conditions, high levels of migration, deprivation and crime within the area or city. The Authority does not currently have the evidence and in order to gather this evidence further work is required including a full city-wide stock condition survey. This work is programmed for 2025/26 and as such this recommendation will not move forward until this work has been completed. Any future selective licensing scheme could run alongside Additional & Mandatory HMO licensing.   (7) The Council could wait until the long-awaited enactment of the Renters Reform Act. This is currently on course to be enacted in Autumn 2025. The Act will place new duties on Local Housing Authorities to enforce issues within the private housing sector and introduce a new decent homes standard to which all privately tented properties must comply. There are however no new duties regarding the management and licensing of HMOs, and such licensing will still remain an integral tool for local authorities. It is therefore agreed that whilst the new Act will increase enforcement duties, it will not replace the duties placed upon landlord under the HMO licensing regulations.

Date of Decision: June 17, 2025