Barnet HMO Fit and Proper Person Test: What the Council Checks

Every HMO licence application in Barnet requires the proposed licence holder and anyone involved in managing the property to pass a fit-and-proper-person assessment. It is not a formality. A failed assessment means Barnet Council will refuse the licence — and an unlicensed HMO exposes the landlord to civil penalties of up to £40,000 plus the risk of a Rent Repayment Order.

What the Assessment Covers

Section 66 of the Housing Act 2004 sets out what Barnet Council must consider when deciding whether someone is fit and proper to hold an HMO licence or manage a licensed property. The council looks at whether the person has:

• Committed criminal offences involving fraud, dishonesty, violence, drugs or certain sexual offences.
• Practised unlawful discrimination on grounds of sex, colour, race, ethnic or national origins, or disability in connection with a business.
• Contravened housing or landlord and tenant law — including previous licensing offences, failure to comply with improvement notices or breach of HMO management regulations.
• Contravened environmental health regulations — such as failing to remedy a Category 1 HHSRS hazard after being served a statutory notice.

The council also considers whether the proposed management arrangements for the property are satisfactory. Barnet requires the licence holder to have a UK address for legal notices, so an overseas landlord must arrange a UK-based managing agent or representative.

Who Gets Assessed

Two roles are assessed separately:

1. The proposed licence holder. This is the person or entity that will hold the licence. For a property owned by an individual, it is usually the landlord. For a company-owned property, the company itself is named as licence holder and the directors or officers are assessed.

2. The proposed manager. If the licence holder does not manage the property day-to-day, the managing agent or nominated manager must also satisfy the fit-and-proper test. The proposed licence holder, proposed manager and people involved in management must be fit and proper; Barnet requires a signed declaration where multiple people are bound by the licence.

How the Declaration Works

Barnet's online licensing portal includes a fit-and-proper-person declaration form. It asks about relevant convictions and enforcement history. Spent convictions are not taken into account in the Section 66 fit-and-proper test; answer the declaration according to its wording and do not assume every past conviction must be disclosed.

The declaration is a legal statement. Knowingly or recklessly giving materially false or misleading information to the council in connection with its housing functions is an offence under Section 238 of the Housing Act 2004 and may be grounds for licence refusal or revocation.

What Happens If You Fail

If the council concludes that the proposed licence holder is not fit and proper, it will refuse the licence application. The options from that point are limited:

Nominate an accredited managing agent. The most common route back is to appoint a professional managing agent who holds membership of a recognised accreditation body — ARLA Propertymark, NRLA, RICS, NALS or UKALA — and who passes the fit-and-proper test in their own right. Barnet may require an independent person to hold the licence and take responsibility for managing the property.

Appeal to the First-tier Tribunal. A landlord who disagrees with the refusal can appeal to the First-tier Tribunal (Property Chamber) within 28 days of the final decision notice. The tribunal rehears the case from scratch and can overturn the council's decision.

Interim Management Order. Where no suitable licence holder can be identified and the property remains occupied, Barnet Council can impose an Interim Management Order under Section 102 of the Housing Act 2004. The council effectively takes control of the letting and management of the property, collects the rent and uses it to fund necessary works. This is a last-resort measure.

Spent Convictions and Disclosure

Spent convictions are not taken into account in the fit-and-proper assessment under Section 66. The council considers evidence of relevant unspent offences, as well as other statutory factors such as unlawful discrimination and contraventions of housing law. Answer the portal declaration as written; the test does not require every past conviction to be disclosed.

Keeping Your Status

Passing the fit-and-proper test at application is not a one-off event. If a licence holder is convicted of a relevant offence during the licence term, Barnet Council can revoke the licence. Licence conditions may require the holder to notify the council of material changes, including a relevant conviction or a change in management arrangements.

The Barnet Landlord Licensing guide covers the full fit-and-proper declaration requirements, common pitfalls and the steps to resolve a failed assessment before it reaches the refusal stage.

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