The act provides local authorities with a discretionary power to declare all or part of its area to be subject to additional licensing. This would bring into the licensing regime those lower risk HMOs that are below the trigger point for mandatory licensing. Typically these will be HMOs with less than three storeys or accommodating less than five people.
Additional licensing covering a particular area can operate for no more than five years.
Local authorities wishing to undertake additional licensing will need to satisfy the requirements of a business case as specified in the act. These are:
- That a significant proportion of HMOs of the above description are being managed ineffectively so as to give rise, or to be likely to give rise, to one or more particular problems for those occupying the HMOs or for members of the public.
- To consult with persons that may be affected by the designation and to consider any representations made.
- That the local authority has considered whether there are any other courses of action available to them that might provide an effective method of dealing with the problem or problems in question, for example an accreditation scheme.
- That the local authority consider that making the designation will significantly assist them to deal with the problem or problems.
- That the authority has considered displacement and housing market effects.