Fit and Proper Person Test for Liverpool Landlords: What You Need to Declare

What the Fit-and-Proper Test Actually Asks

Every prospective licence holder and named managing agent must satisfy the statutory fit-and-proper person test under Section 66 (HMO) or Section 89 (selective) of the Housing Act 2004. In Liverpool, this takes the form of a mandatory self-declaration within the LAR portal application.

The declaration asks whether you or any named manager has:

• Committed offences involving fraud, dishonesty, violence, drugs, or sexual offences
• Practised unlawful discrimination in connection with any business (on grounds of sex, colour, race, ethnic or national origins, or disability)
• Contravened housing, public health, environmental health, or landlord and tenant law
• Been subject to adverse findings or civil penalties by any local housing authority
• Controlled or managed a property subject to an interim or final management order

The test applies to both the proposed licence holder and any separate managing agent named on the application. If you use a letting agency to manage the property and they're named on the licence, they need to pass the test too.

What an Affirmative Disclosure Means

Declaring "yes" to any of these questions doesn't automatically disqualify you. It triggers a secondary vetting process where Liverpool's Private Sector Housing team asks for detailed explanations, court records, or Disclosure and Barring Service (DBS) certificates.

The council assesses the nature and age of the offence, its relevance to property management, and whether there's evidence of rehabilitation. A 15-year-old conviction for something unrelated to property may not be disqualifying. A recent civil penalty from another council for operating an unlicensed HMO almost certainly will raise serious concerns.

The critical point: the council makes this judgment, not you. Your job is to declare honestly and provide whatever supporting documentation they request.

The Consequences of False Declarations

Providing false or misleading information on a licence application is a separate offence under Section 238 of the Housing Act 2004. The consequences are stacked:

• Civil penalty up to £40,000 for offences committed on or after 1 May 2026
• A finding that you are not fit and proper can lead to licence variation or revocation
• Criminal prosecution as an alternative to the civil penalty
• A licence granted on the basis of false information may be reviewed and could be revoked; any further penalty depends on the offence and the facts

Where disclosures need follow-up, Liverpool City Council's Private Sector Housing team may request detailed explanations, court certificates, or Disclosure and Barring Service (DBS) certificates. Provide full and accurate information and respond to any request.

Who Counts as the "Licence Holder"

The licence must be held by a natural person or UK-registered company with a permanent UK postal address where legal notices can be served. An overseas individual or foreign company cannot act as the named licence holder unless a UK-domiciled representative or UK-registered managing agent takes on that role.

This creates a practical constraint for overseas property investors: someone based in the UK needs to be the named licence holder, and that person needs to pass the fit-and-proper test. If you delegate this to a managing agent, make sure they understand they're taking on statutory responsibility, not just an administrative role.

The Licence Holder's Ongoing Obligation

The fit-and-proper assessment isn't a one-time gate. If your circumstances change during the licence term — a new conviction, a civil penalty from another authority, a housing-related court judgment — you're expected to notify the council. Changes that affect fit-and-proper status can lead to licence revocation or variation.

Similarly, if you change your managing agent, the replacement must also satisfy the fit-and-proper test. A licence variation request through the LAR portal covers this, though changing the primary licence holder entity requires a completely fresh application.

Our Liverpool Landlord Licensing Guide covers the fit-and-proper declaration in detail, including how to prepare supporting documentation if you need to make an affirmative disclosure.

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