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Salford City Council - Record of Decision
 
I Paul
Dennett, City Mayor in exercise of the powers contained within the
City Council Constitution do
hereby approve to:
 
Authorise officers to commence
a formal consultation exercise on proposals to designate a citywide
Additional HMO Licensing scheme for Section 257 Houses in Multiple
Occupation in Salford.
The Reasons are:
Evidence within the consultation report strongly supports the
need to proceed with a citywide consultation on an Additional
Licensing Scheme. The findings demonstrate that a significant
proportion of Section 257 HMOs in Salford are poorly managed,
posing serious risks to tenant safety and negatively impacting the
wider community.
 
Inspections revealed widespread
issues, including inadequate fire safety measures in 97% of
properties and health hazards identified in 99% under the Housing
Health and Safety Rating System. These problems are compounded by
the difficulty in identifying and regulating Section 257 HMOs under
current frameworks, as many fall outside existing licensing schemes
and landlords are not required to notify the Council.
 
The inspection programme also
highlighted inconsistent landlord practices, ranging from neglect
to lack of awareness. While serious breaches were addressed through
enforcement, most landlords responded positively to informal
engagement. However, without proactive inspections, many unsafe
properties would remain undetected.
The proposal to consult on
introducing a citywide Additional Licensing Scheme is considered
necessary and proportionate. Subject to the consultation results
and approval of subsequent reports, the scheme will bring Section
257 HMOs into regulation, ensure minimum standards are met, and
support Salford’s broader housing strategy by improving
property conditions, reducing anti-social behaviour, and promoting
community cohesion.
 
In conclusion, the proposed scheme
represents a vital step toward safeguarding tenants and raising standards across the private rented
sector.
Options considered and rejected were:

·        
Take no action – this would be inconsistent
with established Council policy and would fail to address the
legitimate concerns of residents, local elected members and other
stakeholders regarding the impact of the private rented sector on
the local housing market.
·        
Defer the consultation of additional
licensing.
Assessment of Risk:
The
risk is considered low.  The report is
seeking authority to commence a consultation exercise.  This exercise will be conducted in accordance with
the requirements of the relevant legislation, government guidance,
case law and best practice.
The source of funding is:
Any costs incurred in
facilitating the statutory consultation will be met from the
Housing Regulatory services revenue budget and are estimated to be
no more than £7,500.
Legal Advice obtained:
Section 257 HMOs are buildings converted into self-contained
flats where:
 

(a) 
building work undertaken in connection with the
conversion did not comply with the appropriate building standards
and still does not comply with them; and

(b) 
less than two-thirds of the self-contained flats are
owner-occupied.
 
These HMOs are not subject to mandatory licensing, but they can
be included in an additional licensing scheme under Part 2 of the
Act.
 
Section 56(2) of the Housing Act 2004 makes provision for
local housing authorities  to designate
the area of their district, or an area in their
district,

of areas for additional licensing if:
 

(a) 
There is evidence that a significant proportion of
HMOs in the area are managed ineffectively, causing problems either
for those occupying the HMOs or for members of the
public.
 
The
designation must specify the types of HMOs covered, which can
include all Section 257 HMOs in the area of the
district.

 
Before making a designation, the authority
must–

(a)  
carry out a statutory consultation with persons who
are likely to be affected by the designation, including landlords,
tenants and stakeholders, and

(b)  
consider/take account of any representations made in
accordance with the consultation and not withdrawn.

 

Failure to consult properly could render the scheme
unlawful.

 
In
forming an opinion as to the matter mentioned in subsection (2) of
Section 56 above the authority must have regard to any information
regarding the extent to which any codes of practice approved
under Section
233 have been complied with by
persons managing HMOs in the area in question.

 

Section
57 of the Housing Act 2004 also applies
in respect of additional licensing schemes. In that regard, the
authority must ensure that any exercise of the power is consistent
with the authority's overall housing strategy.

 
The
authority must also seek to adopt a co-ordinated approach in
connection with dealing with homelessness, empty properties and
anti-social behaviour affecting the private rented sector, as
regards to both:

(a)  
combining licensing under this Part with other
courses of action available to them, and

(b)  
combining such licensing with measures taken by
other persons.

 
The
authority must not make a particular designation under Section
56 of the Act, unless:

(a)  
they have considered whether there are any other
courses of action available to them (of whatever nature) that might
provide an effective method of dealing with the problem or problems
in question, and

(b)  
they consider that making the designation will
significantly assist them to deal with the problem or problems
(whether or not they take any other course of action as
well).
 
This
report seeks authority to commence a public consultation exercise
as required by Section 56 of the Housing Act 2004. A failure to
consult properly and fairly can give rise to legal challenge by way
of judicial review proceedings.
 
When
exercising public functions, the Council must ensure that it
complies with the public sector equality duty as set out in section
149 of the Equality Act 2010. In that regard, an impact assessment
measures and records compliance with this duty.
 
The
evidence presented within the Draft Additional HMO Consultation
Report demonstrates that a significant proportion of S257 HMOs
in Salford are being managed ineffectively, resulting in serious
risks to tenant safety and negative impacts on the wider
community.
 
The
council have also considered whether there are any courses of
action available that might provide an effective method of dealing
with the problem but concluded that an additional HMO licensing
designation is the most appropriate course of action in the
circumstances.
 
Potential Legal Risks
include:
·        
Judicial review for failure to follow statutory
process.
·        
Human Rights Act challenges if the scheme is
disproportionate.
·        
Equality Act challenges (conducting an Equality
Impact Assessment significantly reduces the risk of challenges
under the Equality Act 2010 and demonstrates that the Authority
have complied with their Public Sector Equality Duty by having
“due regard” to eliminating discrimination, advancing
equality of opportunity and fostering good relations between
protected groups).
Financial Advice obtained:
This
report seeks to obtain approval to go out to consultation for a
Section 257 HMO Licensing scheme, and as such there are minimal
financial implications as the work will be carried out within
existing resources.
 
Any costs incurred in
facilitating the statutory consultation will be met from the
Housing Regulatory services revenue budget and are estimated to be
no more than £7,500
 
If the scheme is implemented
the costs for running the scheme would be self-financing from the
fees chargeable to landlords
 Procurement Advice obtained:
If
approved, the consultation will be undertaken by existing internal
staff resources.  Existing frameworks
will be utilised for printing and stationary
HR Advice obtained:
If
approved, the consultation will be undertaken by existing staff
resources.
Climate Change Advice obtained:
Additional HMO Licensing can assist in identifying rented
properties in poor condition.  Where
these properties are inspected and low energy performance is noted,
measures will be required to be undertaken to improve the
efficiency of the property.  Tenants
identified as being in fuel poverty are referred to appropriate
schemes
The following documents have been used
to assist the decision process:
·        
Housing Act 2004

·        
Appendix A - Draft Additional HMO consultation
report
Contact Officer:      Craig
Condron / Sarah Hughes               
Telephone numbers: 0161 793 3351 / 0161 793 3087

·        
The appropriate scrutiny to call-in the decision is
the Community and Neighbourhoods Scrutiny panel       

 

Signed:
      Paul
Dennett                                           
  Dated: 27.01.26
                       
City Mayor
 

For Democratic
Services use only

 

This decision was
published on 27.01.26                                           

This decision will
come in force at 4.00 p.m. on 03.02.26 unless it is called-in in accordance with the
Decision Making Process Rules.