Debate contribution: Houses in Multiple Occupation: Regulation

Debate contribution by Mr Gordon Lyons on 21 October 2025.

MLA

Mr Gordon Lyons

Party at the time

Democratic Unionist Party

Date

21 October 2025

Type

Debate contribution (made as a minister)

Business

Ministerial Statement

Heading

Houses in Multiple Occupation: Regulation

Assembly identifier

Official Report component 5197226

Read the official Assembly record

Text

I wish to make a statement to the Assembly on the enforcement and licensing of houses in multiple occupation (HMOs). In recent months, there has been an increased focus on HMOs, with concerns being raised about concentrations of that type of accommodation in certain areas. I am also aware of reports about overcrowding and about the operation of unlicensed HMOs. The purpose of my statement today is to address those concerns and provide clarity on the licensing regime for HMOs that operates in Northern Ireland and the 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 a low income. Indeed, the benefits system presumes that single people under 35 will share accommodation and normally limits housing benefit and universal credit to a shared accommodation rate on that basis. We must acknowledge, however, that that type of housing carries higher risks in safety and standards and can have wider community impacts. We must ensure that those matters are managed responsibly while maintaining the right balance across communities, ensuring that housing needs are met without creating undue pressure or changing the character of neighbourhoods. Controls on the 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, which left 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 over-provision test. That means that when considering an application for a new HMO, councils must have regard to the number of HMOs that are already in the locality. Councils should also have their own policies on HMO provision and set restrictions on numbers or percentages of HMOs in certain areas. Regrettably, there are many inconsistencies of approach, and some councils have not exercised their powers to the fullest extent when it comes to that legislation. For that reason, I can confirm that I will be writing to all council chief executives, outlining their obligations and my expectations under the legislation. Councils have powers to investigate, enforce and punish those landlords who are acting outside the law. I expect councils to implement their own HMO policies, including setting a limit on the percentage of HMOs in a certain area. Immigration is an excepted matter, and the lead Department with responsibility for legal obligations to asylum seekers across the UK, including for 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, that will, in most cases, bring an entitlement to access public services, including housing assistance, for which my Department is responsible in Northern Ireland. Approximately 250 HMOs are in use by Mears across Northern Ireland to provide accommodation for asylum seekers and refugees. I have raised concerns on several occasions about the Mears accommodation issues, and I do not plan to rehearse them all today. It is, however, the case that the system is not working and that current policies are failing communities 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, however, have substantial powers under the Act to manage issues that are reported about that type of accommodation, including powers to obtain information and enter premises. Councils also have powers to issue fixed penalty notices and fines and proceed to prosecution if necessary. The most serious offences carry fixed penalties of £5,000 and fines of up to £20,000. Between April 2019 and early September 2025, there were only 77 fixed penalty notices issued, two successful prosecutions for the operation of unlicensed HMOs and one successful prosecution for exceeding the licensed occupancy. The operation of the HMO licensing scheme is funded by the licence fees that are paid by landlords. I am, therefore, increasing the maximum amount that can be charged for a HMO licence application 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, I can confirm that I have written to the Home Office and the Secretary of State for Northern Ireland, requesting that they extend the right-to-rent scheme to Northern Ireland. That would ensure that landlords in Northern Ireland have a legal obligation, as landlords do in England, to ensure that prospective tenants have legal status to reside in the United Kingdom. I have always said that I will do what I can with what I have. Today's statement sets out the clear expectations that I have of every council in Northern Ireland to ensure that they exercise the powers available to them. I have also demonstrated my support by increasing the fees to landlords, which will support councils and the HMO unit to carry out their responsibilities, and I will continue to engage with His Majesty's Government on bringing the right-to-rent scheme to Northern Ireland. I encourage anyone who has concerns or suspicions about unlicensed HMOs, or knows of other issues with HMOs, to report those to their local council or the HMO unit for investigation and action. I commend the statement to the House.

First of all, I am happy to look at any legislative change that may be required, but I would rather use the powers that are available to us and to councils right now, because my understanding and feeling from talking to elected representatives and others on the ground is that they feel that councils are not taking the appropriate action to deal with the problems that many people face. I make no apology whatsoever for making the statement today. I make no apology for setting out the powers and responsibilities that are there. I can highlight many cases where this issue is having an impact on people and is changing the residential nature and make-up of an area. It is right that councils put in place policies that can ensure that those areas are protected and that, when people are doing something illegal, action is taken and fines are used. It is those fines that will fund the HMO unit, which can take that enforcement action.

The Member must be reading a different statement, because I have not scapegoated anybody at all. I have set out clearly the powers that are available to councils. I hope that councils will use those powers in determining HMO applications but also in taking enforcement action against people who are here legally and people who are here illegally. Those powers are available to deal with those landlords. Ultimately, how do we deal with many of the housing issues that we face? We deal with them by building more homes. I encourage the Member to speak to his party colleagues who are in the Executive, because I want to make sure that we can meet our housing targets, including our social housing targets. I hope that his Executive colleagues will join me in ensuring that the necessary finance is available.

They should not be operating without proper planning permission. I have had a number of reports of that happening — various examples have been brought to my attention — particularly in the Armagh City, Banbridge and Craigavon Borough Council area. Those have now been reported to the council and are being investigated. HMOs require planning permission. If they are operating without that planning permission, that should be reported to the HMO unit or to your local council's planning authority so that we can do what needs to be done to make sure that people are adhering to the law and that, if they are not prepared to adhere to the law, they receive the necessary fine and punishment.

Ultimately, it will be for the UK Government to bring in and consider all the evidence. I take a simple position on this, which is that those who want to rent a property should have the legal right to do so. That should not be a controversial statement. We do this in all aspects of our lives. We make sure that people are legally entitled to a good or a service before they are able to get it. If there is racial or any other sort of discrimination, we should use the law to tackle it, but we should not ignore another part of the law. I think that most people in Northern Ireland and beyond think that it is perfectly reasonable and credible that, if you want to rent property in Northern Ireland, you must have a legal right to be here.

I have largely set out today what I said in that correspondence, but, if the Member would like to see it, I am more than happy to share it with him and others. I will arrange for it to be placed in the Assembly Library.

Additional work comes with the administration of HMOs, and it is right that those who benefit from it pay a contribution towards it, which is why I am increasing the fee. Also, there is the ability to get income from penalising those who act outside the law. That is how this will be funded, and most people find it reasonable that the money that comes from those who operate illegally is paid so that we can continue the work of cracking down on that behaviour.

If residents have concerns with those issues — that has been my experience as an elected representative — members of the public can report concerns either directly to the Northern Ireland HMO unit, which is based in Belfast City Council, or to their local authority so that appropriate action can be taken.

That is one of the reasons why there are higher standards for HMOs. It is set out in the Act, and landlords are subject to more stringent standards because of the nature of those who may need to use HMOs. Additional concerns can come from local residents in those areas about the proliferation of HMOs. That is why higher standards are already in place. Of course, they can be reviewed if necessary.

1,771 words. Text as published by the Northern Ireland Assembly.

Assessment

Not flagged

Jev’s structured answers

Assessed 21 October 2026 at 13:32 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

Disagree with this assessment?

Classifications can be challenged. A person reads every challenge, and any change is recorded publicly above with its reason.

Challenge this classification