Decision details

HMO Licence Fee Review 2024

Decision Maker: Director of Housing

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:

From 8 May 2024 to increase the HMO licence fee by 64.76% for new applications and 77.33% for renewals, raising the fees to £1,384 and £1,275 respectively. In addition, to introduce a fee of £150 where a licensable HMO has been identified by the Private Sector Housing Team and a £25 fee for each additional unit of accommodation within the property where there are seven or more.

 

Reasons for the decision:

In line with the Council’s Financial Strategy approved by Cabinet in October 2022, the methodology for the calculation of the current fee structure has been reviewed to ensure that full cost recovery is achieved as is permitted, and that inflationary increases have been applied.

 

The current fees, which were last reviewed in 2017, fall very short of representing the true cost of the Licensing scheme, and according to the Housing Act 2004, a Licensing scheme should be operated on a full cost recovery basis with all the costs for the scheme to be borne by the licence-holding beneficiaries. No additional burden should be placed on the public purse. The Council is facing continuing financial pressures following years of reduced funding and the

current cost-of-living pressures. Maximising income from fees and charges and ensuring full cost-recovery is therefore important to maintain service levels whilst minimising the impact on Council taxpayers.

 

Following a detailed review, a revised fee structure for HMO Licence fees is therefore proposed, which will further support the regulation of houses of multiple occupation in Bournemouth, Christchurch and Poole. The full fee increase will be implemented on 8 May 2024.

 

It is also important to recognise that investigating reported unauthorised HMOs that require a Licence is part of the wider scheme responsibilities and therefore £150 will be added to the fee, where this is the case, to cover any investigation time.

 

Finally, each additional unit of accommodation above six requires more officer time both at inspection and with any assessments and schedules of work.  £25 will be added to the fee for each unit Licensed where there are more than six in total.

 

Publication date: 10/05/2024

Date of decision: 08/05/2024

Accompanying Documents: