Key legal victory for Great Yarmouth Borough Council over facilities in Houses in Multiple Occupation

Great Yarmouth Borough Council has won a key court ruling that has established important new case law around the facilities in hotels being used as Houses in Multiple Occupation (HMOs).

Like many seaside towns, Great Yarmouth has a number of former hotels and other premises which operate as large HMOs. Where they do so, they need to be licensed by the council to ensure they are providing safe accommodation and minimum standards for tenants.

A 2023 council inspection of the St George Hotel in the town's Albert Square found 32 of its 62 rooms were being used as homeless accommodation. And, looking at what the rooms provided, the council said it was an HMO and should meet the legal requirements as such.

The owners of the hotel, Oxford Hotel Investments Ltd, challenged the ruling claiming the accommodation was self-contained flats and not an HMO. A subsequent First Tier Tribunal inspection revealed the hotel rooms offered a fridge, a microwave, an en-suite shower room with WC and hand basin. They didn't have a food preparation area, food storage cupboards, cooking utensils, hob or sink and there was no storage for cutlery and crockery.

As a result, the council's HMO designation was upheld. But Oxford Investments Ltd then appealed that ruling claiming that - because the rooms contained a microwave oven, kettle and fridge - it meant it was providing self-contained cooking facilities and therefore didn't qualify as an HMO.

They took their appeal to the Upper Tier Tribunal (Lands Chamber) where it was rejected at a hearing last month, with His Honour Judge Johns KC ruling the hotel was indeed operating as an HMO.

His ruling said simply plugging in a microwave is not enough to circumvent statutory protection for vulnerable tenants or turn a room into a self-contained flat. He said businesses cannot avoid providing basic amenities by claiming they are not running an HMO.

He added the residents - placed there under homelessness legislation - were usually at the hotel for a significant time and invariably the hotel was their only home.

Councillor Paul Wells, Great Yarmouth Borough Council's portfolio holder for Environment and Sustainability, Licensing and Waste, said: ''People using this type of accommodation are often vulnerable and deserve the protection of the law to ensure minimum standards are provided.

''The council is delighted this ruling clarifies the law around licensing of hotels and large bed and breakfasts that are being operated as HMOs and it sets a precedent for all local authorities that want to improve housing standards for residents.

''By pursuing this court action, the council has demonstrated it will continue to work hard to raise housing standards in the best interests of those who live in the borough. Our teams worked exceptionally hard to achieve this result and deserve real credit.''

In his ruling Judge Johns also highlighted the fact that Oxford Investments Ltd had used AI in formulating its arguments and warned of the dangers of doing so given the potential unreliability of information produced using artificial intelligence.

The company has now sought leave to appeal the verdict.

A property qualifies as an HMO if both of the following apply:

• at least three tenants live there, forming more than one household
• you share toilet, bathroom or kitchen facilities with other tenants

Your home is a large HMO if both of the following apply:

• at least five tenants live there, forming more than one household
• you share toilet, bathroom or kitchen facilities with other tenants

A household is either a single person or members of the same family who live together. A family includes people who are:

• married or living together - including people in same-sex relationships
• relatives or half-relatives, for example grandparents, aunts, uncles, siblings
• step-parents and step-children

Large HMOs need a licence from the local council.