Fit and Proper Person Test for HMO Licensing in England

Before a council will grant an HMO licence, it must be satisfied that the proposed licence holder and property manager are both "fit and proper" to hold the licence and manage the property. This isn't a vague character reference — it's a statutory test under s.66 of the Housing Act 2004. A licence cannot name an unfit person in either role; a different licence holder may be named if the applicant and that person agree.

What the Council Checks

The fit and proper person assessment requires the council to consider whether the applicant, any proposed manager, or any person associated or formerly associated with either of them has:

• Committed relevant offences: Fraud, dishonesty, violence, drugs, sexual offences, or any offence involving the use or threat of violence. These don't have to be housing-related — an unspent fraud conviction from a business venture could be considered.
• Breached housing or landlord-tenant law: Previous convictions or civil penalties for housing offences, including unlicensed HMO operation, breach of licence conditions, harassment or unlawful eviction, breaching management regulations, or failing to comply with improvement notices.
• Practised unlawful discrimination: Discrimination on grounds of sex, colour, race, ethnic or national origin, or disability in connection with running a business — including letting or managing property.
• Been subject to enforcement action: Banning orders under the Housing and Planning Act 2016, control orders, or previous licence refusals or revocations by any council in England.

The word "associated" is important. If the proposed licence holder is a limited company, the assessment applies to every company director, officer, and shadow director. You can't avoid the test by putting the licence in a company name.

The Declaration and DBS Checks

The licence application includes a formal declaration covering criminal history and housing breaches. The applicant must answer truthfully — providing false information is itself an offence.

Some councils go further and require a Basic Disclosure certificate from the Disclosure and Barring Service (DBS). This shows unspent criminal convictions and is used to verify the applicant's declaration. Not all councils request it, but you should be prepared for it.

Previous entries on the national Database of Rogue Landlords and Property Agents (maintained under the Housing and Planning Act 2016) will also surface during the assessment. Councils can check this database before granting a licence.

What Happens If You Fail

If the proposed licence holder or manager is not fit and proper, the council cannot grant a licence naming that person in that role. The applicant may propose a suitable replacement; the authority may grant the licence to a different licence holder if the applicant and that person agree under s.64(2).

However, the council must follow a specific process before refusing:

1. Issue a "Minded to Refuse" notice explaining the reasons.
2. Allow a 14-day representation window for the applicant to respond.
3. Consider any representations before making the final decision.

If the licence is refused, the applicant can appeal to the First-tier Tribunal (Property Chamber) within 28 days. The tribunal reviews the case from scratch and can overturn the council's decision if the evidence doesn't support a refusal.

Licence Holder vs. Property Manager

The application names two roles: the licence holder (usually the property owner or head leaseholder) and the property manager (the person responsible for day-to-day management — collecting rent, arranging repairs, dealing with tenants). Both must pass the fit and proper test independently.

If you use a letting agent to manage the property, the agent (or a named individual within the agency) is usually the proposed manager. The council assesses the agent's fitness alongside yours.

Keeping the Status Throughout the Licence

The fit and proper assessment isn't a one-off check at application. If the licence holder or manager acquires a relevant conviction, penalty, or banning order during the five-year licence term, the council can revoke the licence. The licence holder has a duty to notify the council of any material changes — failing to do so can itself be treated as evidence of unfitness.

At renewal (every five years), the full fit and proper assessment runs again from scratch. Anything that has changed in the intervening period will be considered.

The HMO licensing guide covers the fit and proper test alongside the full application process, including what to declare and how to prepare for the council's assessment.

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