Agenda item

The HMO Unit Manager provided the Committee with an overview of the undernoted report:

 

“1.0     Purpose of Report or Summary of main Issues

 

            To consider an application for a Licence permitting the use of premises as a House in Multiple Occupation (HMO).

 

Premises	Application No.	Applicant(s)	Managing Agents
13 Fitzroy Avenue, Belfast, BT71HS	8836	Mr Jack Kennedy	Property People Belfast Ltd T/A Property People

 

            Members are reminded that licences are issued for a 5-year period with standard conditions. Where it is considered necessary to do so, the Committee can also impose special conditions. 

 

Background

 

            The property was previously licensed as an HMO in the name of the previous owner who sold the property on the 4 August 2021 at which time the licence in accordance with Section 28 of the Houses in Multiple Occupation Act (Northern Ireland) 2016 ceased to have effect.

 

            On the 15 October 2021 an HMO licence application was received from the owners of the accommodation.  As this was a new application the HMO Unit consulted with the Council’s Planning Service who on the 15 October 2021 confirmed that a Certificate of Lawful Use or Development was granted with the planning reference LA04/2021/1732/LDE  

 

            Following the publication of this application, an objection was received in relation to the application. The objection raises concerns regarding overprovision of HMOs in the locality.

 

            On the 15 October 2021 the applicant submitted an application for a Temporary Exemption Notice “TEN” and following clarification from the managing agent the TEN was granted on the 20 October 2021.

 

2.0       Recommendations

 

            Taking into account the information presented Committee is asked to hear from the applicant and the objector and make a decision to either:

 

(i)      Grant the application, with or without any special conditions; or

(ii)     Refuse the application.

 

            If the application is refused, the applicant has a right of appeal to the County Court. Such an appeal must be lodged within 28 days of formal notification of the decision. The licence will remain in place pending the appeal. 

 

3.0       Main Report

 

            Key Issues

 

            Pursuant to the 2016 Act, the Council may only grant a licence if it is 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, are fit and proper persons;

c)     the proposed management arrangements are satisfactory);

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

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

(i)       is suitable for occupation as an HMO by the number of persons to be specified in the licence, or

(ii)     can be made so suitable by including conditions in the licence.

 

Planning

 

            As this is a new application the HMO Unit consulted with the Council’s Planning Service who on the 15 October 2021 confirmed that a Certificate of Lawful Use or Development was granted with the planning reference LA04/2021/1732/LDE

 

Fitness

 

            When considering the fitness of an applicant the Council must have regard to any offences concerning fraud/ dishonesty, violence, drugs, human trafficking, firearms, sexual offences, unlawful discrimination in, or in connection with, the carrying on of any business; or any provision of the law relating to housing or of landlord and tenant law. It also permits the Council to take into account any other matter which the council considers to be relevant.

 

            The NIHMO Unit has consulted with the following units within the Council’s City and Neighbourhood Services Department –

 

(a)   Environmental Protection Unit (‘EPU’) - who have confirmed that in relation to night-time noise there has been no relevant enforcement action required in respect of the HMO in the last 5 years,

 

(b)   Environmental Protection Unit (‘EPU’) - who have confirmed that in relation to day-time noise there has been no relevant enforcement action required in respect of the HMO in the last 5 years, 

 

(c)   Public Health and Housing Unit (‘PHHU’) - who have confirmed that in relation to rubbish accumulation/filthy premises, there has been no relevant enforcement action required in respect of the HMO in the last 5 years,

 

(d)   Enforcement Unit (‘EU’) - who have confirmed that in relation to litter and waste, there has been no relevant enforcement action required in respect of the HMO in the last 5 years, 

 

            The Applicants and Managing Agent have confirmed that they have not been convicted of any relevant offences as set out at paragraph 3.3 of this report.

 

            The Applicant or Managing Agent have not been convicted of any HMO related offences by the Council. The EPU, PHHU and EU, solely in respect of their statutory functions, have confirmed that there are no relevant, previous convictions in respect of the Applicant, Managing Agent or occupants. Due to data protection issues which have arisen, PSNI have not been accepting or responding to notification of these applications. Officers are continuing to engage with PSNI to find a resolution to this issue.

 

            Officers are not aware of any other issues relevant to the Applicant’s fitness.

 

Overprovision

 

            For the purpose of determining whether or not the granting of a licence would result in an overprovision of HMOs in the locality of the accommodation, and in order to ensure consistency as both a planning and licensing authority the locality was defined as being HMO Policy Area ‘HMO 2/22 Botanic, Holylands and Rugby’ as defined in the document “Houses in Multiple Occupation (HMOs) Subject Plan for Belfast City Council Area 2015.

 

            Legal Services has advised that there is a clear requirement in Section 8 of the 2016 Act upon the Council to be satisfied that the granting of a licence will not result in overprovision.

 

            On the date of assessment, 14 February 2022 there were a total of 1100 licensed HMOs in HMO policy area ‘HMO 2/22 Botanic, Holylands, Rugby’ which equates to just over 45% of the total dwelling units, which in turn exceeds the 30% development limit as set out at Policy HMO 1. The 1100 licensed HMOs have a capacity of 5022 persons.

 

            The total number of dwelling units in a Policy Area is measured by Ordnance Survey’s Pointer database.

 

            The Council must also consider the need for housing accommodation in the locality and the extent to which HMO accommodation is required to meet that need.

 

            The fact the use of the property as an HMO is permitted for planning purposes is a relevant consideration in determining whether the grant of this licence will result in overprovision. There is an argument that it may not do so as the premises are already being used as an HMO, subject to the TEN issued on 20th October 2021 was has been further extended until 26 April 2022.

 

            However, it should be borne in mind that planning permission was granted on the basis that the use had been established for 5 or more years and was therefore immune to enforcement. No assessment of overprovision was made at that time.  Given the level of licensed HMO properties in this locality as set out above it would be highly unlikely that a planning application for a new HMO in the area would be successful as the thresholds in the 2015 Plan have been significantly exceeded.

 

            The Council recognises that there is a need for intensive forms of housing and to meet this demand, HMOs are an important component of this housing provision. HMOs, alongside other accommodation options within the private rented sector, play an important role in meeting the housing needs of people who are single, who have temporary employment, students, low-income households and, more recently, migrant workers.

 

            In September 2017 The Housing Executive published the document ‘Housing Market Analysis Update – Belfast City Council Area’ which states ‘HMOs’ form an important element of the PRS, particularly for younger people on low incomes and for single people, under the age of 35, affected by the limitation of housing benefit to the shared room rate. Anecdotal evidence also indicates that this has been a popular sector with migrant workers.”

 

            On 2 March 2022 there were 27 licensed HMOs advertised for let on the website Property News in BT7, from the information provided on the website this represented 92 bed spaces, although most of the accommodation is not available for immediate occupancy. 

 

            Anecdotal evidence from conversations with HMO managing agents suggest that that there is currently a lack of HMO accommodation available in the locality. It is officers’ view that it is too early to tell whether this is a temporary problem or evidence of an emerging long-term supply issue.

 

Objections

 

            One valid objection has been received in relation to this application on the grounds of over provision of HMOs in the local area. (Appendix 3)

 

Attendance

 

            The applicant and/or their representatives will be available to discuss any matters relating to the licence application should they arise during your meeting. The objector will also be in attendance if members want to hear from them.

 

Suitability of the premises

 

            An inspection of the premises was carried out by Officers from the Service on 17 December 2022 at which time it was established that an emergency escape window was required to the first floor of the property.

 

Notice of proposed decision

 

            On the 3 March 2022, pursuant to Paragraph 9 of Schedule 2 of the Houses in Multiple Occupation Act (Northern Ireland) 2016, Officers issued a notice of proposed decision to the applicant setting out the terms of the proposed licence. (Appendix 4)

 

            The notice of proposed decision stated that the council proposed to refuse the licence as the council is not satisfied that the granting of the licence will not result in overprovision of HMOs in the locality in which the living accommodation is situated.

 

            A statement of reasons for the proposal was included in the notice of proposed decision.

 

Statement of reasons for the proposed decision

 

            Overprovision:

 

            In accordance with Section 12 of the Houses in Multiple Occupation Act (Northern Ireland) 2016 ‘2016 Act’ the Council is satisfied that the granting of the HMO licence will result in overprovision of HMO accommodation in the locality of the accommodation, for the purpose of section 8(2)(d) of the 2016 Act.

 

            For the purpose of Section 12(2) of the 2016 Act. The Council has determined the locality of the accommodation as being HMO Policy Area ‘HMO 2/22 Botanic, Holylands, Rugby’ as defined in the document “Houses in Multiple Occupation (HMOs) Subject Plan for Belfast City Council Area 2015 (the ‘2015 Plan’)

 

            In making this decision the Council has had regard to:

 

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

 

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

 

            To inform the Council in its consideration of the above provisions, the Council has taken account of the 2015 Plan and in particular, Policy HMO 1 and Policy HMO 2.

 

            The total number of dwelling units in a Policy Area is measured by Ordnance Survey’s Pointer database.

 

            Regarding Section 12(2)(a) the number and capacity of licensed HMOs in the locality.

            On the date of assessment, 14 February 2022 there were a total of 1100 licensed HMOs in HMO policy area ‘HMO 2/22 Botanic, Holylands, Rugby’ which equates to just over 45% of the total dwelling units, which in turn exceeds the 30% development limit as set out at Policy HMO 1. The 1100 licensed HMOs have a capacity of 5022 persons.

 

            Regarding Section 12(2)(b) the need for housing accommodation in the locality and the extent to which HMO accommodation is required to meet that need.

 

            A survey of 50 properties advertised on the website Property News in the postcode area BT7 which includes policy area HMO 2/22 was undertaken on 2 March 2022.

 

            This determined available accommodation was advertised in 27 licensed HMOs. From the information provided on the website this represented up to 92 bed spaces, although most of the accommodation is not available for immediate occupancy. 

 

            Anecdotal evidence from previous conversations with HMO managing agents suggest that that there is currently a lack of HMO accommodation available in this locality. It is too early to tell whether this is a temporary problem or evidence of an emerging long-term supply issue.

 

            Officers cannot be satisfied that the granting of the HMO licence will 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.

 

Applicant’s response to the notice of proposed decision

 

            On the 16 March 2022 the applicant submitted a written response to the notice of proposed decision in which he provides representations and commentary on the statement of reasons included in the notice of proposed decision.

 

            Additionally, the applicant provides commentary on the subject premises, his capacity as a fit and proper person and the objection received.

 

            Financial and Resource Implications

           

            None. The cost of assessing the application and officer inspections are provided for within existing budgets.

 

            Equality or Good Relations Implications/

            Rural Needs Assessment

 

            There are no equality or good relations issues associated with this report.”

 

            The Chairperson welcomed to the meeting Ms. B. Ruddy, who had submitted an objection to the application.  Ms. Ruddy explained to the Committee that, as a resident of the area for over 30 years and as Chair of the Holylands Residents’ Network, she had seen the destruction of the area due to overprovision of HMO licences over the previous number of years and that the community had been decimated.  She highlighted the impact of overprovision in the area, stating that it was the most densely populated area in Belfast, it had the highest rates of antisocial behaviour and constant fly tipping and open bins in the streets, due to lack of space to the rear of the properties, had caused foul smells in the area.

 

            She reported that residents had endured noise issues, both during the day and through the night, and that car parking had caused congestion and pollution within the residential area.  She added that the figure of 45% HMO provision in the area, contained within the report was not a true reflection of the area and, in any case, was far above the 30% recommendation. 

 

            She referred to the Council statement that there had been no complaints received with regard to antisocial behaviour at this property. She stated that it had not been accurate as the complaints procedure involved a number of agencies and the complexity of making a complaint discouraged many residents from doing so.  She added that there was an intimidation factor with regard to making complaints due to a fear that windows would be broken or cars damaged, if a complaint were to be lodged.

 

            She acknowledged that demographics were changing in the area and that there was a need for HMO licences as part of the housing market to provide affordable housing, but stated that the Holylands area was saturated with regard to HMO provision.

 

            Ms. Ruddy stated that her work in the local community was aimed at reducing antisocial behaviour and promote regeneration, to make it a more welcoming area for families and young people.

 

The Chairperson thanked Ms. Ruddy for her presentation and welcomed Mr. J. Kennedy, the applicant, to the meeting.  Mr. Kennedy explained that Ms. Ruddy had objected to the HMO application on generic grounds of overprovision and had not submitted any evidence in support of that claim.  He stated that his application should not be considered to contribute to overprovision in the area and reported that there was significant underprovision in the area.

 

He pointed out to the Committee that the property had held an HMO licence, since 2014, prior to its recent sale and transfer of ownership, and that, had the change of ownership not occurred, the previous licence would have remained valid until November, 2023.

 

He referred to the Council’s assessment for overprovision and stated that, in his view, the Council had a weak anecdotal commentary that was clearly not a robust assessment of housing provision in the area.

 

He informed the Committee that the property was an excellent example of very high quality, recently renovated, five-bedroom accommodation which was well designed and well managed and that the property met, if not exceeded, all necessary standards for the operation of an HMO licence.

 

He outlined the benefits of an HMO property for students, low-income households and migrant workers and stated that the private rental sector played a vital role in meeting accommodation needs.  He added that there was underprovision of HMO properties in the area and that statements from two large, well-respected and established expert local agents who operated in the area, supported his assertion of underprovision, in that they stated that the volume of HMO provision in the area does not meet the demand.

 

            Mr. Kennedy concluded by stating that he felt that his application, on a property which previously operated as an HMO, should be granted, in order to continue to help address the growing accommodation demand in the area and that his application was no different to the large number of applications that had been approved earlier in the meeting.

 

The Chairperson thanked Mr. Kennedy for his presentation and asked the Committee if they had any questions for the applicant or objector to the application.

 

A Member stated that, although the fitness of the applicant was not being contested, the inference that there was underprovision of HMO licences in the Holylands area was not an accurate statement and that, the data assessment, undertaken in February, 2022, had indicated that 45% of the total dwelling units in the Botanic, Holylands, Rugby HMO Policy Area, were licenced HMO units, which exceeded the 30% development limit, as set out at Policy HMO 1.  He added that Legal Services had advised the Committee that there was a clear requirement in Section 8 of the 2016 Act that the Council may only grant a licence if it had been satisfied that the granting of the licence would not result in overprovision of HMOs in the locality.

 

One Member commented that she felt it had been unfair that property agents in the area, with the knowledge that, upon the transfer of ownership of a property, the owner must apply for a new licence, rather than a renewal, had not been forthcoming or transparent with regard to the application process and HMO policies in an area of overprovision, with prospective homeowners in advance of purchase.

 

The Committee agreed to refuse the application on the basis that granting the license would result in overprovision.