Agenda item

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

He outlined that the property had had the benefit of an HMO licence, issued by the Council, with a start date of 20th January, 2021, and an expiry date of 20th January, 2026, in the name of Mr. Sam Shepherd.

The Committee was advised that ownership of the property transferred to “Remark Group Ltd.” with an assignment date of 28th June, 2023. Mr. S. Shephard was a director of the Remark Group Ltd.  In accordance with Section 28 “Change of ownership: effect on licence” of the 2016 HMO Act, the licence in the name of Mr. S. Shephard ceased to have effect on the date of transfer.

            An application for a new HMO licence was received from Remark Group Ltd on 30th September, 2025.  The property was inspected on 17th October, 2025, at which time it was vacant.

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 of Development “CLEUD” was granted on 24th June, 2021.

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.   Officers were not aware of any other issues relevant to the fitness of the applicant or manager.

For the purposes of Section 12(2) of the 2016 Act, the Council had determined the locality of the accommodation within Housing Management Areas (HMA) “HMA 2/08 Edinburgh St” as defined in Council’s Local Development Plan Strategy “2023 Strategy” which had been 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, 25th November 2025, 48% of all dwelling units in policy area HMA 2/08 Edinburgh St were made up of HMOs and (intensive forms of accommodation) flats/apartments, which in turn exceeded the 20% development limit as set out at Policy HOU10. There were 175 (27%) licensed HMOs with a capacity of 650 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 a relevant consideration in determining whether the granting of the licence would result in overprovision.

The HMO 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 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.  The accommodation had been inspected on 30th October, 2025, at which time it complied with the physical standards for a 5 person HMO.

The Chairperson welcomed Mr. S. Shephard to the meeting.  He advised the Committee that, as a landlord, the decision to refuse the HMO licence would halve his net worth as the house was all that he owned.  He was a local businessman who had paid himself £6,000 per annum for the last five years and the HMO was a small nest egg for his family.  He stated that he had been advised to move the property into a Limited Company and that he had not realised that it would result in a problem with his HMO licence.  He provided details of a recent case from September 2024, where the High Court granted licences to 12 HMOs in similar circumstances and he requested that the Committee would treat him fairly and in the same vein as that applicant.  He stated that the error had been an oversight by his property agent and his solicitor. He also argued that the overprovision test surely did not apply, as it was not a new application, rather, it was an existing HMO in the area, and, even if it did, he disagreed with the figures provided to the Committee.

In response to a Member’s query, the HMO Manager explained that the cases to which he was referring did not have the same background.  He outlined that those cases related to applications whereby the owner had applied and had been granted licences by the Housing Executive for a number of properties, prior to the 2016 Act being implemented, and in the other cases an error had been made by Council officers regarding applications made and granted in the wrong name as, at that time, the Council did not require the applicant to submit proof of title to confirm ownership , which was completely different to Mr. Shephard’s case, in which the licence ceased to have effect pursuant to section 28 of the Houses in Multiple Occupation Act (Northern Ireland) 2016 on the date that he transferred the property from himself to a Limited Company to which he was a Director.

He reminded the Committee that the requirement for the submission of a proof of title before an application was to be considered valid was approved by the Licensing Committee in December 2024 and came into operation on 1st April 2025.

Moved by Councillor McCann,

Seconded by Councillor McKay 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 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, as determined under section 8(2)(d) of the Act.