Agenda item

The Houses in Multiple Occupation (HMO) Managerpresented the details of the application to the Committee.  He highlighted to the Members that the application was not subject to call-in, as the call-in period would exceed the time limit for determining the application pursuant to Schedule 2, Paragraph 2, of the 2016 Act and, therefore would be in breach of a statutory duty

He explained that the property had had the benefit of an HMO licence issued by the Housing Executive in the name of the applicant which expired on 19th August, 2023.  Due to an administrative oversight, a reminder letter was not sent to the applicant, informing him that the licence was about to expire.  On 24th September, 2023, an HMO licence application was received from the owner of the accommodation.

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 full planning permission for use as an HMO was granted on 25th February, 2008.

            It was reported that the NIHMO Unit had consulted with the Environmental Protection Unit in relation to daytime noise; 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 Environmental Protection Unit confirmed that three noise warning notices had been issued in relation to nighttime noise, dated 30th August 2020, 16th August 2021 and 19th May 2022.  The applicant had confirmed that they had not been convicted of any relevant offences under 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) “2/22 Botanic, Holylands, Rugby” 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 January, 2024, 90% of all dwelling units in policy area HMA 2/22 were made up of HMOs and flats/apartments, which in turn exceeded the 20% development limit as set out in Policy HOU10.  There were 1095 (45%) licensed HMOs with a capacity of 4808 persons in that HMA.

It was outlined that there were a total of 2409 dwelling units in HMA 2/22.  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 January, 2024, out of 38 premises available for rent within the BT7 area on PropertyNews.com there were 11 licensed HMOs which, from the information presented on the website, represented 43 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, the 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, 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.

It was reported that November 2023 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.

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 23rd November, 2023.

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

Moved by Councillor Murray

Seconded by Councillor McCann 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; and

   while recognising that there was no legal duty upon the Council to remind HMO owners when their licence was due to expire, officers should, out of courtesy, make a concerted effort to issue letters to that effect.