The "Fit and Proper Person" Test: How Councils Assess HMO Applicants

Every HMO licence application involves an assessment not just of the property, but of the person or company applying to hold the licence — and of anyone else with a significant role in managing it. This is the "fit and proper person" test, and a failure here can sink an otherwise perfect application.

Who gets assessed

The test applies to the proposed licence holder and to the proposed manager if different (for example, a managing agent), and can extend to anyone with a legal or beneficial interest in the property who is closely involved in its management.

What councils actually check

Assessors look at whether the person has any relevant unspent convictions — particularly offences involving fraud, dishonesty, violence, drugs, or sexual offences, and specifically housing-related offences such as illegal eviction or harassment of occupiers. They also check for any previous contravention of housing law, any history of licence revocation, and whether the person has practised unlawful discrimination in the course of a business.

It's about pattern and severity, not any single black mark

A single old, minor, and clearly unrelated conviction does not automatically mean a failed assessment — councils have discretion and are expected to consider relevance, severity, and how much time has passed. A pattern of housing-related offences, or a serious and relevant conviction, is a different matter and is far more likely to result in refusal.

What happens if the proposed holder isn't fit and proper

This doesn't necessarily end the application. It's common in this situation for the licence to instead be granted to another suitable person connected to the property — for example a managing agent who does pass the test — rather than the licence being refused outright, provided a suitable alternative arrangement can be put in place.

Companies are assessed too

Where the applicant is a company rather than an individual, the test extends to the company's directors and any other person involved in managing the HMO on the company's behalf — incorporating doesn't sidestep the assessment.

We flag this early, not after submission

As part of preparing your application, we discuss the fit and proper person requirements upfront, so if there's anything that needs addressing — such as proposing a different licence holder or manager — it's resolved before submission rather than causing a delay or refusal after the fact.