If your application for a licence is refused you will be advised in writing why this has occurred. You will also be given the opportunity to comment and put right any problems identified.
If the problem cannot be easily rectified, it may be necessary for the property to stop being used as an House in Multiple Occupation (HMO), and either be converted to self-contained flats or use it as a normal house with one family.
If, however, you are found to have an HMO without a licence and the property needs one, you may be prosecuted and fined up to £20,000. If the property remains an HMO, but a licence cannot be issued, the Council must issue an Interim Management Order.
Interim and Final Management Orders
If an interim management order is issued the Council may take over the management of the property for up to 12 months, or until a licence can be issued.
If after 12 months a licence still can not be granted, the Council may issue a Final Management Order. This means the Council may take over the management of the property for up to 5 years.
The Council will assume all the responsibilities of the landlord and undertake all management and maintenance of the property. They will collect the rent and the owner will only receive what is left after the Council has recovered its costs.