Before the Housing Act 2004, property standards were assessed under the Housing Fitness Standard — a pass/fail test that local authorities found too blunt to address modern housing hazards effectively. The HHSRS replaced this with a more nuanced risk-based scoring system that considers both the likelihood of a harm occurring and the likely severity of the outcome if it does. Category 1 hazards (scores above 1,000 on the HHSRS scale) require mandatory local authority action — the council must serve an improvement notice, a prohibition order, or take emergency action. Category 2 hazards give the council discretionary powers to act.
The HMO licensing provisions in Part 2 of the Act have been the most commercially significant for landlords. From 2018, the definition of a mandatory licensable HMO was expanded by removing the previous requirement that the property must be at least three storeys high — the current test is simply five or more persons from two or more households (occupying as their only or main residence), regardless of the number of storeys. This brought hundreds of thousands of additional properties into the mandatory licensing regime. Failure to hold a mandatory HMO licence carries civil penalties of up to £30,000 per property and exposes the landlord to rent repayment orders from tenants covering up to 12 months of rent.
HHSRS hazards, HMO licensing, selective licensing and civil penalties under HA 2004
The key provisions of the Housing Act 2004 that every landlord must understand:
- Part 1 — HHSRS: the 29 hazard categories and local authority powers: The Housing Health and Safety Rating System (HHSRS) is a risk-based evaluation methodology applied by local authority Environmental Health Officers (EHOs) to residential premises. It assesses 29 categories of hazard falling into two bands: physiological requirements (damp and mould; excess cold; excess heat; asbestos; biocides; carbon monoxide; lead; radiation; uncombusted fuel gas; volatile organic compounds); psychological requirements (crowding and space; entry by intruders; lighting; noise); protection against infection (domestic hygiene; pests and refuse; food safety; personal hygiene; sanitation and drainage; water supply); protection against accidents (falls associated with baths; falls on level surfaces; falls associated with stairs; falls between levels; electrical hazards; fire; flames and hot surfaces; collision and entrapment; explosions; position and operability of amenities; structural collapse). Category 1 hazards (HHSRS score above 1,000): the local authority MUST take action — it has a duty to serve one of the following: improvement notice (HA 2004 s.12): requiring the landlord to carry out specified works within a specified time; the notice must specify the hazard, the works required, and the time for compliance; a minimum of 28 days is given for compliance. Prohibition order (ss.20-21): prohibiting use of the property (or part of it) for human habitation; or limiting the number or category of occupants. Emergency prohibition order (s.43): where there is an imminent risk of serious harm — the order takes effect immediately without prior notice and without a right of appeal before it takes effect. Emergency remedial action (s.40): the council can carry out remedial works itself and recover the costs from the landlord. Hazard awareness notice: a non-binding notice informing the landlord of a hazard without requiring remedial action — used for Category 2 hazards and where immediate action is not warranted. Category 2 hazards (HHSRS score below 1,000): discretionary — the local authority may serve notices, take action, or do nothing. Common Category 1 hazards landlords should address: damp and mould growth (excess cold; structural dampness); excess cold (inadequate heating; poor insulation; heating system failure — Awaab's Law supplements the HHSRS enforcement framework for social landlords; HA 2004 s.12 applies for private rented); electrical hazards; fire (particularly in HMOs); falls on stairs and steps.
- Part 2 — HMO mandatory licensing, Part 3 — selective licensing, civil penalties (s.249A) and banning orders (Part 4A): Part 2 — HMO definition and mandatory licensing: the Housing Act 2004 Part 2 (ss.55-78) establishes mandatory HMO licensing. An HMO is mandatory licensable if it satisfies the standard test (as defined by s.254): (1) it is occupied by five or more persons; (2) those persons form two or more households; (3) they share or lack exclusive use of basic amenities (bathroom; toilet; cooking facilities); (4) it is used as their only or main residence. The Housing Act 2004 (Licensing of Houses in Multiple Occupation) (Prescribed Descriptions) (England) Order 2018 (SI 2018/221) removed the previous three-storey requirement for mandatory licensing — from 1 October 2018, any property meeting the five-person/two-household test is mandatorily licensable regardless of storeys, including flats above shops and purpose-built flats in multiple occupation. Licence: granted for up to 5 years; the local authority must grant unless the applicant is not fit and proper or the property is not reasonably suitable for occupation by the proposed number of occupants. Fit and proper person test (s.66): the local authority considers whether the applicant (or any person associated with the management) has been convicted of certain offences — fraud; violence; drug offences; housing/landlord offences; contravened housing/landlord law. Licence conditions: standard conditions automatically apply (fire safety; gas/electrical safety; ensure appliances are in safe working order; ensure furniture meets fire safety regulations; provide tenants with prescribed information); the local authority can impose additional discretionary conditions. Part 3 — selective licensing (ss.79-100): local authorities can designate all or part of their area as a selective licensing area — requiring all private rented properties in that area to be licensed, regardless of size or occupant number. Designation requires the Secretary of State's confirmation (for designations covering more than 20% of the authority's area); renewal requires reconfirmation. The statutory grounds for selective licensing (s.80): (1) the area is one of low housing demand; (2) the area is experiencing a significant and persistent problem caused by anti-social behaviour; (3) the area is one where properties are in poor or very poor condition; (4) the area is experiencing a high level of migration; (5) the area is subject to a significant level of deprivation; (6) the area has high levels of crime. Civil penalties (s.249A, inserted by Housing and Planning Act 2016): local authorities can impose a civil penalty of up to £30,000 per offence as an alternative to prosecution. Offences attracting civil penalties: failing to hold a mandatory HMO licence; breaching mandatory HMO licence conditions; failing to hold a selective/additional licence; breaching management regulations (Housing (Management of Houses in Multiple Occupation) Regulations 2006); overcrowding. Rent Repayment Orders (RRO): tenants can apply to the First-tier Tribunal for a Rent Repayment Order requiring the landlord to repay up to 12 months of rent if the landlord was guilty of a relevant offence (including operating an unlicensed HMO). Management orders (Part 4): Interim Management Order (IMO): takes management of the property from the landlord for a specified period (usually 12 months, renewable); the local authority collects rent and manages the property. Empty Dwelling Management Order (EDMO): for properties that have been empty for 6+ months and are causing a nuisance. Banning orders (Part 4A, inserted by Housing and Planning Act 2016): the First-tier Tribunal can ban a landlord or property agent from letting residential property; the ban can be for a specified period or indefinitely; a national database of banning orders is maintained (England)
Frequently asked questions
Does my property need a mandatory HMO licence under the Housing Act 2004?+
Yes, if it is occupied by five or more persons from two or more households as their only or main residence and they share basic amenities (bathroom; toilet; cooking facilities). Since October 2018 (when the three-storey requirement was removed), any property meeting this five-person/two-household test requires a mandatory HMO licence from the local authority — regardless of the number of storeys. This includes flats above shops and purpose-built flats in multiple occupation. Failure to hold a mandatory HMO licence is a civil offence carrying a penalty of up to £30,000, and tenants can apply for a Rent Repayment Order covering up to 12 months of rent.
What is a Category 1 HHSRS hazard and what must the local authority do about it?+
A Category 1 HHSRS hazard is a housing hazard with a score above 1,000 on the Housing Health and Safety Rating System scale — indicating a serious risk of harm. When an Environmental Health Officer identifies a Category 1 hazard, the local authority has a mandatory duty to take action: it must serve an improvement notice (requiring the landlord to carry out specified works within a minimum of 28 days), a prohibition order, or take emergency remedial action. Category 1 hazards cannot be ignored by the local authority. Common Category 1 hazards include: damp and mould growth; excess cold; electrical hazards; fire safety risks (especially in HMOs); falls on stairs.
What are the grounds for selective licensing under the Housing Act 2004?+
Local authorities can designate an area for selective licensing under Housing Act 2004 s.80 if it meets one of six statutory grounds: (1) low housing demand; (2) significant and persistent anti-social behaviour problem caused by PRS residents; (3) properties in poor or very poor condition; (4) high level of migration into the area; (5) significant level of deprivation; (6) high levels of crime. Designations covering more than 20% of the authority's area require the Secretary of State's confirmation before coming into force. Selective licensing schemes require all private landlords in the designated area to hold a licence — regardless of property size or number of occupants.
How large can civil penalties be under the Housing Act 2004?+
Up to £30,000 per offence — imposed by the local authority as an alternative to prosecution. The civil penalty regime was introduced by the Housing and Planning Act 2016 inserting s.249A into the Housing Act 2004. Offences subject to civil penalties include: operating an unlicensed HMO; breaching HMO licence conditions; operating without a selective or additional licence; breaching the HMO Management Regulations. On top of civil penalties, tenants can apply to the First-tier Tribunal for a Rent Repayment Order (RRO) requiring the landlord to repay up to 12 months of rent where the landlord committed a relevant housing offence.
- Mandatory HMO licensing — full application guide and conditions →
- HHSRS — Category 1 and Category 2 hazards in detail →
- Selective licensing — designated area obligations for all PRS landlords →
- Civil penalties — up to £30,000 per housing offence →
- Rent Repayment Order — tenants reclaiming up to 12 months rent →
- Additional HMO licensing — local authority discretionary designation →