New Regulations to Adjust HMO Licensing Fees in Northern Ireland

In an effort to maintain a balanced budget for local councils, the Department for Communities has introduced a new Statutory Rule under the Houses in Multiple Occupation Act (Northern Ireland) 2016. This rule, known as the Houses in Multiple Occupation (Fees) (Amendment) Regulations (Northern Ireland) 2025, aims to adjust the fees associated with HMO licences.

What's Changing?

The primary change set out by these regulations involves an increase in the maximum fee that councils can charge for HMO licence applications. Previously, the cap was set at £45 per person annually. The new regulation raises this limit to £75 per person annually.

Why the Increase?

This adjustment is intended to support the HMO licensing scheme in operating on a cost-neutral basis. When the initial Act was introduced, one of its goals was to ensure that transferring the administration of HMOs to local councils would not financially burden local ratepayers. The fee adjustment is based on financial analyses from the Northern Ireland HMO Unit, ensuring that the scheme remains self-sustaining.

Impact Assessments

• Equality Impact: A preliminary screening determined that the fee increase would not adversely affect equality of opportunity or disadvantage rural communities, thus negating the need for a full Equality Impact Assessment.

• Regulatory Impact: An assessment concluded that the increase would not significantly impact affordability for those applying for HMO licences.

No Consultation Required

The decision not to conduct a public consultation was based on the financial necessity of maintaining the scheme’s cost neutrality, as guided by data from the Northern Ireland HMO Unit.

Compliance and Replication

The Department asserts that these regulations align with Section 24 of the Northern Ireland Act 1998. Additionally, this measure mirrors similar legislation across the UK aimed at ensuring that HMO licensing schemes remain financially self-sufficient.

These changes are set to ensure that the administration of Houses in Multiple Occupation continues to run smoothly without imposing additional costs on the general public. For more detailed financial implications, the Regulatory Impact Assessment is available on the Department's website.