The Portsmouth City Council has been found to have overstepped its authority by imposing broad, standardised conditions on Houses in Multiple Occupation (HMO) licences. A landmark ruling by the Upper Tribunal, following a challenge by local landlords Simon and Iva Fletcher backed by the Portsmouth & District Private Landlords Association (PDPLA), could set a precedent for HMO licensing practices nationwide.
The dispute centred on several mandatory conditions the council had attached to HMO licences, including requirements for landlords to incorporate specific inventory details, deposit arrangements, and rent clauses into tenancy agreements. The council also demanded that landlords provide tenant information to the authority and applied these identical conditions across all HMO properties without individual assessment.
The Upper Tribunal concluded that local authorities cannot use their HMO licensing powers to dictate the specific content of tenancy agreements. Crucially, it ruled against the automatic imposition of discretionary conditions on every property without a case-by-case evaluation. While existing HMO licences in Portsmouth remain valid, the council has confirmed future licences will be issued with revised wording to align with the judgment.
Chairman of the PDPLA, Martin Silman, highlighted the impact of the previous approach, stating it had led to landlords withdrawing from Portsmouth's HMO market. He recounted, "I had four small HMOs, now I have none," illustrating the challenges faced by property owners under the previous regime. The Fletchers also expressed their view that many councils nationally impose similar blanket conditions without sufficient justification, suggesting the ruling's wider relevance.
The judgment comes at a time when the UK housing market is facing various regulatory and economic pressures. The private rented sector has been under increasing scrutiny, with landlords facing evolving legislation and rising operational costs. This decision may empower landlords in other parts of England to scrutinise and potentially challenge conditions imposed by their local authorities on HMO licences.
Portsmouth City Council has informed licence holders that future licences will incorporate updated wording for clarity and adherence to current legislation. The council has not indicated whether it intends to appeal the tribunal's decision. The ruling establishes that while councils retain essential powers to license HMOs, conditions must be individually justified rather than applied as a blanket policy across all properties.
Source: Upper Tribunal