Landlords with HMOs have been forced to pay thousands in licence fees for quite some time, but thanks to a recent ruling in the High Court, many are now in the position whereby they can apply for a refund on fees paid, all thanks to a landmark case.
Definition of an HMO
Bristol City Council v Digs (Bristol) concerns a Bristol maisonette that the council decided was eligible for an HMO licence since the accommodation took up two floors of a four floor property. However, the landlord disagreed, saying that the since the property only consisted of two floors it fell outside the statutory definition of an HMO. The living accommodation was accessed via a separate staircase that led straight up to the second floor of the building.
Since Digs and the Council couldn’t agree, the case ended up in Bristol Magistrates court. The District Judge looked at the facts of the case and ruled in favour of Digs. The council decided to appeal to the High Court. Unfortunately for the council, Justice Burnett agreed with District Judge Zara. It ruled that the decision should be upheld and that the council would not be allowed to appeal.
What Does This Mean for Landlords?
This is an important decision for landlords since it means that any property taking up two floors or less, irrespective of how many floors the entire building has, does not fulfil the definition of a statutory HMO. Therefore landlords with similar properties who have paid licence fees should now look at whether they could be entitled to a refund.
