In the wake of three recent court judgements in the UK, the NLA believes that
some local authorities may have overcharged HMO landlords. As a result, the
NLA has written to all local authorities to warn them that they must contact
any landlords affected and let them know that they could be entitled to
refunds.
Important Court Judgements
The three judgements cited by the NLA are:
• Crompton v Oxford City Council – Oxford Council tried to charge a fee
for a variation in a HMO licence, but the court ruled this was unlawful.
• Hemming v Westminster City Council – The court ruled that councils are
not allowed to use licence fees as an excuse to make extra profits and that
licence fees must be transparent and open to scrutiny.
• Bristol City Council v Digs (Bristol) Ltd – Bristol Council tried to
force a landlord of a privately owned two storey maisonette to obtain an HMO
licence, but the court ruled that the lower (third) storey (which only
contained a hallway and entrance corridor) did not count and therefore the
property was not an HMO.
NLA Comments
Licence fees are a contentious issue. There is a risk that local authorities
are making it unnecessarily difficult for landlords by introducing licensing,
although the councils say that by doing so they are helping to regulate the
sector. This could be discouraging new landlords from entering the sector,
which is bad news for tenants in overstretched areas. Many also believe that
local authorities are using license fees as an excuse to profiteer.
Are you an HMO landlord? Do you think you have been unfairly charged? If so,
let us know.
