Oral Statement - HMO licensing and enforcement

Date published: 21 October 2025

In recent months, there has been an increased focus on Houses in Multiple Occupation, with concerns raised regarding concentrations of this type of accommodation in certain areas. I am also aware of reports regarding overcrowding and the operation of unlicensed HMOs.

The purpose of my statement today is to address these concerns and provide clarity on the licensing regime for HMOs which operates in Northern Ireland and responsibilities for enforcement.

Let me first clarify what HMOS are.

An HMO is a property or part of a property where three or more people from more than two households live and share washing or cooking facilities. HMOs are useful in some circumstances, for example when it comes to student accommodation or for those on low income and indeed, the benefit system presumes that single people under 35 will share accommodation and normally limits Housing Benefit and Universal Credit on that basis to a ‘shared accommodation rate’.

However, we must acknowledge that this type of housing carries higher risks, both in terms of safety and standards, and can have wider community impacts. We must ensure these matters are managed responsibly while maintaining the right balance across our communities, ensuring housing needs are met without creating undue pressure or changing neighbourhood character.

Controls on numbers of HMOs are necessary to ensure that any detrimental effects on neighbouring properties or the environmental character and qualities of residential areas are minimised.

Unfortunately, it is recognised that over concentrations of HMOs were allowed to develop in some areas in the past, leaving some challenges to be addressed.

The Houses in Multiple Occupation Act (Northern Ireland) 2016 provides councils with a key statutory tool to prevent future over concentrations of HMOs through the overprovision test. This means that when considering an application for a new HMO, councils must have regard to the number of HMOs already in the locality.

Councils should also have their own specific policies about HMO provision and set restrictions on numbers or percentages of HMOs in certain areas. Regrettably, Mr Speaker, there are far too many inconsistencies of approach, and some councils have not exercised their powers to the fullest extent when it comes to this legislation. For this reason, today I can confirm that I will be writing to all Council Chief Executives outlining their obligations and my expectations under the current legislation.

Councils have powers to investigate, enforce, and punish those landlords acting outside the law. I expect councils to implement their own HMOs policies, including setting a limit on the percentage of HMOs in a certain area.

Immigration is an excepted matter and the lead government department with responsibility for legal obligations to asylum seekers across the UK, including accommodation, is the Home Office.

Where an individual has been accepted by the Home Office as a refugee and given leave to remain in the UK, in most cases this will bring an entitlement to access public services including housing assistance for which my Department is responsible in Northern Ireland.

I can confirm that approximately 250 HMOs are currently in use by MEARS across Northern Ireland to provide accommodation for asylum seekers and refugees. I have raised concerns on several occasions around the MEARS accommodation issues and I do not plan to rehearse them all again today. It is however the case, that this system is not working and current policies are failing communities right across Northern Ireland and the rest of the United Kingdom.

There are higher risks associated with HMOs, and they often have a negative impact on neighbourhoods and the balance of a community.

Councils have substantial powers under the Act to manage issues reported with this type of accommodation, including powers to obtain information and enter premises. Councils also have powers to issue fixed penalty notices, fines and proceed to prosecution if necessary.

The most serious offences carry fixed penalties of £5,000 and fines of up to £20,000.

Since April 2019 to early September 2025, there have only been 77 fixed penalty notices issued and 2 successful prosecutions for the operation of unlicensed HMOs and 1 successful prosecution for exceeding the licensed occupancy.

The operation of the HMO licensing scheme is funded by licence fees paid by landlords, and I am therefore increasing the maximum amount that can be charged for an HMO licence application, in order to ensure the adequate resourcing and operation of the licensing scheme.

The private rented sector in Northern Ireland is under strain, so it is important that landlords who decide to break the law are held to account. Therefore Mr Speaker, I can also confirm to the house that I have written to both the Home Office and Secretary of State for Northern Ireland requesting they extend the Right to Rent scheme to Northern Ireland. This would ensure that landlords in Northern Ireland also have a legal obligation, as they do in England, to ensure prospective tenants have legal status to reside in the United Kingdom.

In closing Mr Speaker, I’ve always said I would do what I can with what I have and today sets out the clear expectations I have of every Council in Northern Ireland to ensure they exercise the powers available to them. I have also demonstrated my support by increasing the fees to landlords, which supports Councils and the HMO unit to carry out their responsibilities and I will continue to engage with UKG on bringing the Right to Rent scheme to Northern Ireland.

I would encourage anyone who has concerns or suspicions about unlicensed HMOs, or other issues with HMOs, to report these to their local council or the HMO Unit for investigation and action.

I commend this statement to the House.