New Regulations Boost HMO Licensing Fees in Northern Ireland

The Department for Communities in Northern Ireland has announced an amendment to the Houses in Multiple Occupation (Fees) Regulations 2025, aiming to adjust the financial landscape for HMO licensing. Under this new regulation, the maximum fee councils can charge for an HMO licence application will see a significant increase from £45 to £75 per person annually.

Why the Change?

The primary goal of this fee adjustment is to ensure the HMO licensing scheme remains cost-neutral for local councils. Originally, when the Houses in Multiple Occupation Act 2016 was introduced, the intention was to transfer HMO administration to councils without burdening ratepayers. However, to maintain this balance, the fees needed to be updated to reflect the current financial requirements.

Consultation and Impact

Interestingly, the amendment did not necessitate a public consultation. The decision was based on financial data from the Northern Ireland HMO Unit, which oversees the licensing scheme across all councils. The unit's responsibility is to ensure that the scheme operates without incurring a deficit or surplus.

In terms of impact, the regulatory assessment conducted suggests that the fee increase will not significantly affect affordability for those seeking HMO licences. Furthermore, an equality screening test indicated no adverse effects on equality of opportunity or rural needs, negating the need for a full Equality Impact Assessment.

Alignment with UK Standards

This amendment aligns Northern Ireland's legislation with similar measures in the rest of the UK, where HMO licensing schemes are also maintained on a cost-neutral basis.

For more details, including the financial implications, the Regulatory Impact Assessment is available on the Department for Communities' website. This adjustment highlights the ongoing efforts to balance administrative costs with service quality in housing regulation.