Can I get a temporary pass on my HMO licence while I sort out my property?
Quick Summary
Yes, it is possible to get a temporary exemption, but it is not automatic. You must notify the council of your intent to stop using the house as an HMO, and they have the discretion to grant you a notice that lasts for three months [cite:uk-housing-act-2004-sec62].
The situation
I am a small-scale landlord based in England and I am currently facing a bit of a headache with one of my properties. It is a large house that I use as a house in multiple occupation with five tenants living there. I realised recently that I haven't actually obtained the formal licence required by the local council, which was an honest mistake due to some recent changes in my management programme. I am very keen to get this sorted properly, so I have already started the application process and have set aside £1,500 to cover the various fees and administrative costs. However, the council has contacted me to say I am currently operating without a licence. I have written to the local housing authority to explain that I am taking active steps to change the way the house is used so that it won't need a licence anymore, or at least to show I am working towards full compliance. I want to know if there is any way the council can give me a temporary grace period or an exemption for a few months while I finish these arrangements, so I don't get fined or prosecuted while I am trying to do the right thing. Is there a way to get a formal notice that protects me for three months?
Detailed Analysis
Under the Housing Act 2004, every House in Multiple Occupation (HMO)—which is a large house shared by several people—must be licensed unless a specific exemption is in place[2].
Regarding your specific situation, you can apply for what is called a 'temporary exemption notice.' To do this, you must notify your local housing authority of your "intention to take particular steps with the view to securing that the house is no longer required to be licensed"[1]. This means you must tell them you are actively changing the property so it no longer meets the legal definition of an HMO.
If the council agrees, they may serve you a notice that makes the house exempt from licensing requirements for a period of 3 months[1]. This notice is not a guarantee; the law states the authority "may, if they think fit, serve on that person a notice"[1]. This means the council has the choice to say yes or no based on their own judgment.
If the council decides to refuse your request, they must provide you with a written notice explaining their decision and the reasons for it[1]. If this happens, you have the right to appeal that decision to a tribunal within 28 days of receiving that notice[1].
It is important to note that if you are seeking a second exemption after the first three months ends, the council will only grant it if they consider there are "exceptional circumstances that justify the service of a second temporary exemption notice"[1].
Please note that local council policies or additional local government regulations may affect how these applications are processed.
Statutory Citations
Legal Citation: Housing Act 2004 § Section 62 — Temporary exemption from licensing requirement
"This section applies where a person having control of or managing an HMO which is required to be licensed... but is not so licensed, notifies the local housing authority of his intention to take particular steps with a view to securing that the house is no longer required to be licensed."View Official Legislation →
Legal Citation: Housing Act 2004 § Section 61 — Requirement for HMOs to be licensed
"Every HMO to which this Part applies must be licensed under this Part unless— a a temporary exemption notice is in force in relation to it under section 62"View Official Legislation →
Important Legal Disclaimer
General legal information, not formal legal advice. The information provided on LawAsked does not constitute formal legal advice and creates no attorney-client relationship. If you require legal assistance, please consult a licensed attorney in your jurisdiction.
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