Labour council with £1,500 HMO licensing threatens £250 surcharge

Labour council with £1,500 HMO licensing threatens £250 surcharge


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A Labour-controlled council is threatening landlords with a late application fee or even enforcement action if they miss a deadline later this month.

Reading council says its borough-wide Additional Licensing scheme came into effect on March 1 and applies to certain HMOs not covered by the mandatory HMO licensing scheme. 

Under it, landlords must apply for an Additional Licence if they rent out a property in Reading which is occupied by three or four people; forms two or more households (for example, three unrelated friends, or a couple sharing with another person); and has shared facilities such as a kitchen, bathroom or toilet. 

The council has farmed out the scheme to Home Safe, a Doncaster-based company which says it delivers “better outcomes” to local authorities imposing licensing regimes.

A Home Safe spokesperson says:  “Our role is to support a clear and straightforward application process, while helping ensure properties meet the required standards.” 

And Matt Yeo, lead housing councillor in Reading, adds: “We are reminding landlords and agents that it is a criminal offence for an agent to operate or manage a licensable property without a valid licence in place” 

The fee for an Additional Licence is £1,500 for up to five years, split into two parts: £750 payable on submission of the application and another £750 when the draft licence is issued.

But a statement just issued by the council adds: “Landlords who submit a late application may face a £250 surcharge. 

“It is a criminal offence to operate a licensable property without submitting a valid application. 

“Landlords who fail to apply may face a civil penalty of up to £30,000 per offence or prosecution and an unlimited fine.” 

The council claims the fee is to cover the costs of operating the scheme, including application processing and compliance checks forming of two inspections. 

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