Fit and Proper Person
The License holder must be a FIT and PROPER PERSON – That does this mean?
The Local Authority must have regard to the statutory criteria set out in Section (66 (2) and have regard to any other facts or matters which it considers to be relevant
Matters to which the Local Authority must have regard.
- Any offence involving fraud, or other dishonesty, or violence or drugs or in Section 3 of the Sex Offences Act 2003
- Practiced unlawful discrimination of the law in connection with the carrying out of any business
- Contravened any provision of the law relating to housing or landlord and tenant law – Illegal eviction etc.
- Acted other than in accordance with any code of practice for the management of HMO’s
Associates
The Local Authority may take into account evidence of any of the above conduct by a person “associated or formerly associated with”, the proposed licence holder or manager “whether on a personal, work or other basis”, if relevant.
Any “Spent” convictions cannot be taken into account. However. A lack of conviction may non mean that the incident was not relevant.
“Spent convictions”
Under the Rehabilitation of Offenders Act 1974 criminal convictions can become spent or ignored after a rehabilitation period. They do not need to be disclosed. The rehabilitation period varies depending on the sentence or order imposed by the Court – not the nature of the offence. Custodial sentences of more than two and a half years never become spent. All borstal or detention centre sentences are now spent. The periods from the date of conviction are as follows:-
| Sentence | Rehabilitation Period |
| 1. Prison sentences of 6 months or less, including suspended sentences and detention in a young offender institution | 7 years (3½ years if 17 or younger when convicted) |
| 2. Prison sentences of more than 6 months to 2 and a half years, including suspended sentences and detention in a young offender institution | 10 years (5 years if 17 or younger) |
| 3. Fines (even if subsequently imprisoned for fine default), compensation, probation (for convictions on or after 3 February 1995), community service, combination, action plan, curfew, drug treatment and testing and reparation orders | 5 years (2½ years if 17 or younger) |
| 4. Absolute discharge | 6 months |
| 5. Conditional discharge or bind-over, probation (for convictions before 3 February 1995), supervision, care orders | 1 year or until the order expires (whichever is longer) |
| 6. Attendance centre orders | 1 year after the order expires |
| 7. Hospital orders (with or without a restriction order) | 5 years or 2 years after the order expires (whichever is longer) |
| 8. Referral Order |
Managers
Assumption: the person having control of the property is the most appropriate person to hold the Licence. i.e. the person who receives the rents.
The proposed manager, if not the Licence Holder, and all other persons involved in the management must also be fit and proper
The Decision
If the Local Authority is not satisfied – IT MUST REFUSE and make an Intermediate Management Order instead. Any proposed reasons to be given in advance. There are 14 day to make representations and the Right to appeal to the Residential Property Tribunal (RPT).
Some Local Authorities are also operating a “Zone”, so if the Landlord resides outside this zone and cannot reasonable demonstrate that the property is being managed properly. The Local Authority may appoint a local management agent to be the License Holder.
For the Manager this may have a serious impact on how they act for their client, as they will now have the full weight of the obligations on their shoulders rather than that of the owner.
The Local Authority must grant a License IF it is satisfied that:
The HMO is reasonably suitable (etc)
The Licence holder would be a fit and proper person.
