Portsmouth HMO landlords face licence fee hike after council decision

In a recent cabinet meeting, the council resolved to pass on increased costs to landlords managing houses in multiple occupation (HMOs). Under the Housing Act, local authorities have the power to license HMOs. The council currently issues mandatory licences for properties housing five or more people and additional licences for those accommodating three or four.

A recent financial review identified rising costs associated with processing applications, monitoring licence holders, inspecting properties, pay awards, and identifying unlicensed landlords. The proposed changes will result in an 11 per cent fee increase for both additional and mandatory licensing compared to 2023 rates.

A typical additional licence will increase by £86 (£1.43 per month), while a mandatory licence for a five-bedroom HMO will rise by £121 (£2 per month) over a five-year term. Landlords applying for a licence will be granted either a one-year, two-and-a-half-year, or five-year licence, depending on their compliance with safety and management practices, with well-performing landlords benefiting from more cost-effective licences.

During a deputation, Martin Silman, chair of the Portsmouth and District Private Landlords Association, expressed disbelief at the price hike, noting that licences in Southampton cost "less than half" the price.

He added: "These costs end up as rent increases – so an 11 per cent increase will have an impact on Portsmouth rent levels and tenant affordability, dumping yet more people into the ‘emergency accommodation’ poverty trap."

In addition to licence fees, an 11 per cent increase will apply to enforcement charges, with the cost of an improvement notice rising from £653 to £725.

Council officers defended the fee increase, stating that it protects local taxpayers, particularly in cases of legislative breaches. In November last year, HMO landlord Iqbal Miah was prosecuted for running an overcrowded HMO, where a family of three was found to be living in a single room. The following month, Elite Rooms Portsmouth Limited, along with its director Shahed Ahmed, faced prosecution at Portsmouth Crown Court for multiple housing regulation breaches, including operating unlicensed HMOs.

Cllr Darren Sanders, cabinet member for housing and tackling homelessness, acknowledged that while the increase was not ideal, it was necessary.

“I think the fact this is a rise over two years means whilst it’s not really palatable it’s more understandable," he said.

“The fact we’re not compensated for the employer’s national insurance is sad, but that means that it is inevitable that residents have to pay but the fact it’s £2 a month per HMO over two years changes the tenor of the deputation.

“I don't like increasing these licence fees, I fear that I have no choice.

“We’re trying to drive up standards, we can’t have HMOs where there’s only one smoke detector - the good landlords will understand, the bad landlords should be driven out.

“HMOs are a vital part of the housing mix even though many people don’t like them, the key thing is to make sure they’re safe and responsible.”