Agenda item

The Committee was apprised of the details of the application.  The Houses in Multiple Occupation Manager explained that the property had had the benefit of an HMO licence issued by the Housing Executive in the name of the of the previous owner and was scheduled to expire on 23rd March, 2021.  From 14th February, 2020 the owner of the accommodation was recorded by land registry as being Mr. E. O’Hara and, in accordance with section 28(2) of the Houses in Multiple Occupation Act, the existing licence ceased to have effect on the date the ownership transferred.

On 4th August, 2023 an HMO licence application was received from the owner of the accommodation. The Committee was advised that, had the new owner applied for a licence before the change of ownership had taken place, the licence which was already in effect in respect of the HMO would have been treated as being held by the new owner, until such times as their application had been determined.

TheHouses in Multiple Occupation 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 16th May, 2023.

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 HMO Manager referred the Committee to details of other enforcement action which had taken place, which was detailed in Appendix 3 of the report.

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) “2/21 Ulsterville” 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 November, 2023, 68% of all dwelling units in policy area “HMA 2/21 Ulsterville” were made up of HMOs and flats/apartments, which in turn exceeded the 20% development limit as set out in Policy HOU10.  There were 247 (20.5%) licensed HMOs with a capacity of 1078 persons in that HMA.

It was outlined that there were a total of 1210 dwelling units in “HMA 2/21 Ulsterville”.  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 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.

The Committee was advised that, on 17th November, 2023 out of 64 premises available for rent within the BT9 area on PropertyNews.com there were 3 licensed HMOs which, from the information presented on the website, represented 9 bed spaces. The HMO Manager advised the Committee that anecdotal evidence from previous conversations with HMO managing agents suggested that that there was currently a lack of HMO accommodation available in that locality.

On 7th December, 2022, Ulster University Director of Campus Life 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, 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.

It was reported that November 2022 monitoring information produced by the Council’s Planning Service for PBMSA indicated that 2154 bedspaces were currently under construction with 646 bedspaces becoming operational in September 2023.

            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 also reported that the accommodation had been certified as complying with the physical standards for an HMO for three persons by a technical officer from the NIHMO service, on 11th October, 2023.

            On 17th November, 2023, 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.  The Members were advised that a response had not been received from the applicant.

            The Chairperson welcomed Mr. P. MacDermott, the applicant’s legal representative, to the meeting.  He outlined that:

·        the property had had the benefit of an HMO registration until 23rd March, 2021, under the previous NIHE scheme, which had been granted prior to the new legislation which came into effect in April 2019;

·        the applicant had purchased the property in February 2020, unaware of the new legislation and the fact that the transfer terminated the HMO licence;

·        when the applicant became aware of the legislation, he applied to the Council for a licence;

·        the property had the benefit of a CLEUD;

·        as of 17th November, 2023, of the 64 properties available for rent within BT9 on that date, only three were licensed HMOs;

·        it was quite clear that there was a major need for HMO accommodation within the area, as the Council had acknowledged;

·        a lack of HMOs in the area was leading to a major housing crisis; and

·        surely the purpose of the 2019 legislation was to stop new HMO licences being granted and that the property in question had been a licensed HMO within the old scheme and, in the interest of fairness, that the application should therefore be granted.

In response to a Member’s question, the HMO Manager explained that new figures regarding Purpose Built Managed Student Accommodation (PBMSA) had been released since the report had been written.  The Committee was advised that the information illustrated that there continued to be an expansion of PBMSA across the City, with over 2000 bed spaces currently under construction, with an operational date of September 2024.  He advised that there appeared to be a shift towards students moving into PBMSA rather than in HMOs.  It was reported that officers felt that, while there was certainly a demand for HMOs across the city, the demand for HMOs could be met in other localities, thereby not increasing the burden on the local community in the Ulsterville HMA.  He added that it was important for the Members to note that there was also a high demand for private rented sector homes as well as social housing within the area.

After discussion, it was

Moved by Councillor Murray,

Seconded by Alderman McCullough and

      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.