Report attached.

At the request of the Sub-Committee officers provided an update on Homes in Multiple Occupancy (HMO). Members have asked to understand the position with HMOs picture as a whole in Havering, both licensed and unlicensed properties. Members have asked for information on the HMO Consultation Response, the numbers of reports of suspected unlicensed HMOs, inspections carried out, and enforcement measures undertaken.

Members have also asked for information on Unlicensed HMOs as well as details of the total numbers of HMOs, broken down by ward.

Officers presented the consultation process and outcomes, alongside enforcement data and licensing issues. Members raised questions about consultation methodology, ward selection criteria, and data accuracy.

Officers confirmed that the consultation ran for 12 weeks, exceeding the statutory minimum, and involved multiple channels: virtual forums, direct emails to stakeholder groups, social media campaigns, billboards, and local media. Over 403 responses were received, with residents generally supportive of the proposals, while landlords and their representative organisations expressed opposition. The consultation highlighted key concerns such as licence fees, proposed licence conditions and the perceived burden on landlords. Approximately 41% of respondents supported the proposals with residents forming the majority of those in favour.

Members deliberated on ward selection for licensing schemes. Officers explained that wards were chosen based on private rented sector concentration above the national average (19%) and evidence of disrepair or crime. Members queried why certain wards were excluded and raised concerns about outdated boundary data being used in presentations. Officers reassured the Sub-Committee that Cabinet decisions would be based on current boundaries, though acknowledged data presentation issues.

The Sub-Committee noted and reviewed the data on licensed and unlicensed HMOs. Officers reported around 314 licensed HMOs with concentrations in specific wards. Unlicensed HMOs were identified largely through complaints with 223 suspected cases reported in 2025 to date, showing significant growth compared with previous years.

Members expressed concern about incomplete or miscategorised data due to limitations in software systems. Officers confirmed all reported cases are investigated though acknowledged gaps in intelligence-led enforcement.

The Sub-Committee acknowledged the detailed outline of Enforcement activity. Civil penalties were described as resource-intensive and ineffective, with a low collection rate (around 20%). Six penalties had been issued in 2025, with only one paid. Criminal prosecutions were reserved for repeat or serious offenders, with two successful cases concluded in the past year, resulting in fines and confiscation orders. Officers noted ongoing challenges with debt recovery and resource constraints, but highlighted recent use of Article 4 directions and shorter licence terms to strengthen enforcement.

Members questioned the effectiveness of enforcement and the incentives for landlords to comply. Officers explained that compliant landlords benefit from five-year licences, while non-compliant landlords face annual renewals and planning enforcement. Concerns were raised about communication with tenants, particularly those with limited English, and about safeguarding issues such as modern slavery. Officers confirmed referrals are made to relevant agencies when necessary and that tenant rights are explained via council housing pages and advice services.

The Committee concluded that while consultation was robust and enforcement efforts are ongoing, data presentation and boundary accuracy require improvement. Recommendations will be made to Cabinet to ensure clarity in reporting, stronger enforcement mechanisms, and better communication of tenant rights.

Recommendations agreed:

1.            Develop a communications plan to improve awareness of tenants’ rights and licensing requirements.

2.            Provide updated data broken down by new ward boundaries.

3.            Share a briefing note on how planning and licensing regimes interact for HMOs.

4.            Refer to Audit Committee the issue of outdated ward boundaries in Council systems and data accuracy.

The Committee acknowledged the complexity of enforcement and the need for continued scrutiny to ensure standards are upheld and residents are protected