Agenda item

The Houses in Multiple Occupation (HMO) Manageroutlined the details of the application to the Committee. 

He explained that the property had had the benefit of an HMO licence issued by the Council on 11th May, 2020, to Mr. H. Curran and Ms. B. Mulholland, with an expiry date of 11th May, 2025.  In February 2021, the ownership of the property had been transferred to Torrbeg Properties Limited and, in accordance with Section 28 (2) of the Houses in Multiple Occupation Act (NI) 2016, the existing license ceased to have effect on the date of transfer.  The NIHMO Unit had not been informed of the change of ownership at that time.  An application for a new HMO licence was received from Torrbeg properties Limited on 2nd August, 2024.

TheHMO Manager outlined that, pursuant to the 2016 Act, the Council could only grant a licence if it was satisfied that:

a)     the occupation of the living accommodation as an HMO would not constitute a breach of planning control;

b)     the owner, and any managing agent of it, were fit and proper persons;

c)     the proposed management arrangements were satisfactory;

d)     the granting of the licence would not result in overprovision of HMOs in the locality;

e)     the living accommodation was fit for human habitation and—

                                                   i.          was suitable for occupation as an HMO by the number of persons to be specified in the licence, or

                                                 ii.          could be made so suitable by including conditions in the licence.

The Committee was advised that, as it was a new application, the Council’s Planning Service was consulted. It had confirmed that a Certificate of Lawful Existing Use or Development (“CLEUD”) was granted on 17th January, 2020.

It was reported that the NIHMO Unit had consulted with the Environmental Protection Unit in relation to nighttime and daytimenoise; the Public Health and Housing Unit in relation to rubbish accumulation/filthy premises; and the Enforcement Unit in relation to litter and waste and all had confirmed that there had been no relevant enforcement action required in respect of any of the issues in the HMO in the last 5 years.  The applicant had confirmed that they had not been convicted of any relevant offences pursuant to the 2016 Act.

For the purpose of Section 12(2) of the 2016 Act, the Council had determined the locality of the accommodation as being Housing Management Area (HMA) “2/17 Sandymount” as defined in the document Council’s Local Development Plan Strategy, which was formally adopted on 2nd May, 2023.  It was reported that Legal Services had advised that there was a clear requirement in section 8 of the 2016 Act upon the Council to be satisfied that the granting of a licence would not result in overprovision.

The officers had had regard to:

a)     the number and capacity of licensed HMOs in the locality; and

b)     the need for housing accommodation in the locality and the extent to which HMO accommodation was required to meet that need.

To inform the Council in its consideration of the above provisions, the Council had taken account of the 2023 Strategy given that “Nurturing sustainable and balanced communities was a fundamental aim of the LDP’s housing policies.”  In particular, the Council had considered Policy HOU10, which stated:

“Within designated HMAs, planning permission will only be granted for Houses in Multiple Occupation (HMOs) and/or flats/apartments where the total number of HMOs and flats/apartments combined would not as a result exceed 20% of all dwelling units within an HMA.”

The Committee was advised that, on the date of assessment, 17th October 2024, 76% of all dwelling units in policy area “HMA 2/17 Sandymount” were made up of HMOs and flats/apartments, which in turn exceeded the 20% development limit as set out in Policy HOU10.  There were 109 (64%) licensed HMOs with a capacity of 469 persons in that HMA.

The Committee was advised that the fact that the use of the property as an HMO was permitted for planning purposes was arelevant consideration in determining whether the granting of the licence would result inoverprovision. 

The Committee was advised that, on 17th October, 2024, out of 80 premises available for rent within the BT9 area on PropertyNews.com there were 18 licensed HMOs which represented 69 bed spaces.

The Houses in Multiple Occupation Manager reminded the Committee that there was a need for intensive forms of housing and, to meet that demand, HMOs were an important component of the housing provision. HMOs, alongside other accommodation options within the private rented sector, played an important role in meeting the housing needs of people who were single, who had temporary employment, students, low income households and, more recently, migrant workers and asylum seekers.

He reported that the Ulster University Director of Campus Life, in December 2022, had advised the Council’s City Growth and Regeneration Committee that there was an “increase in competition for HMOs particularly from NIHE, Immigration Services and statutory agencies and there were increasing accommodation issues across the housing sector which required a holistic view and should include the consideration of international students, families and graduates looking for professional accommodation.”

However, the QUB Director of Student Plus had confirmed that the current trend indicated a significant move of students to purpose-built student accommodation blocks. She had advised the Members that there were 7,000 purpose built managed student accommodation (PBMSA) rooms in the city, the majority having been built since 2018, and approximately 5,000 in the city centre.

The Committee was reminded that recent monitoring information produced by the Council’s Planning Service for PBMSA indicated that 2055 bedspaces were currently under construction with an operational date of 2024, 92 bedspaces approved but where construction had not yet commenced and a further 1426 bedspaces going through the planning process.

Therefore, with the continued expansion of the PBMSA sector and students transitioning from private rentals to PBMSAs, it was too early to tell whether the increased competition from non-students for HMOs was a temporary problem which could be managed by the contraction in students residing in existing HMO accommodation within the locality, or evidence of an emerging long-term supply issue.

TheHouses in Multiple Occupation Manager explained that, in assessing the number and capacity of licensed HMOs, as well as the need for HMO accommodation in the locality, officers could not be satisfied that the granting of the HMO licence would not result in overprovision of HMO accommodation in the locality of the accommodation for the purpose of section 8(2)(d) of the 2016 Act.

The Committee was advised that no objections had been received in relation to the application. 

It was reported that the accommodation had been certified as complying with the physical standards for an HMO for 5 persons by a technical officer from the NIHMO service, on 30th August, 2024.

On 17th October, 2024, pursuant to Paragraph 9 of Schedule 2 of the Houses in Multiple Occupation Act (Northern Ireland) 2016, officers had issued a Notice of Proposed Decision to the Applicant advising that it was proposing to refuse the licence on the grounds of overprovision. 

On 6th November, 2024, representations had been received, on behalf of the applicant, from the Elliot Trainor Partnership.  The correspondence details another property owned by the same applicant which had been recently approved.  The Committee’s attention was drawn to those representations and to the officers’ response.  The officer had outlined to the applicant that the application in question had been approved in error and that it should, in fact, have been brought before the Licensing Committee with a recommendation for refusal on the grounds of overprovision.  The Members were assured that additional advice and training had been provided to staff to mitigate against any future recurrence.

            The HMO Manager read out a statement which had been submitted by the applicant, Mr. H. Curran, who was not in attendance at the meeting.  The applicant had stated that he had owned and let the property out in multiple occupation since 1990, having complied with all planning and regulatory controls.  He outlined that, in consultation with his accountant, he had been advised to transfer the property to a private limited company, with he and his wife as the sole directors and shareholders.  He outlined that he had been meticulous in his business dealings.  He outlined that he had retired from legal practice in 2019.  In his understanding of the HMO Act (NI) 2016 he had interpreted that it was unnecessary for him to apply for a new HMO licence because the ownership had been transferred to a private company essentially in his ownership and that, while he had changed managing agent, the ownership had therefore been continuous.  Therefore, he felt that the granting of a licence for the property was not an addition to the area, as it was being dealt with by officers, as it had been an HMO for approximately 30 years.  He stated that he felt that officers were perhaps using the refusal as a quest to reduce the number of HMOs in the area.  He emphasised that there was a need for both students at Queen’s and employees of essential services such as hospitals to live in the area.

            The Chairperson thanked the HMO Manager for the information which had been provided.

Moved by Councillor McKay,

            Seconded by Councillor McCann,

      Resolved – that the Committee agrees to refuse the application as, in accordance with Section 12 of the Houses in Multiple Occupation Act (Northern Ireland) 2016, it was satisfied that the granting of the HMO licence would result in overprovision of HMO accommodation in the locality of the accommodation, as determined under section 8(2)(d) of the Act.