South Belfast HMO house application refused due to overprovision

Belfast Council has turned down a HMO application for a street in the Stranmillis area with more than three times the council limit on multiple occupation homes.

Elected representatives at the November meeting of the Belfast City Council Licensing Committee rejected an application for a new HMO licence by Torrbeg Properties Ltd for 10 Sandymount Street, Belfast, BT9 on the basis of overprovision of HMOs in the area.

The property has been owned for over 30 years by the same person, but a decision by the owner, a former lawyer, to transfer the property to a private limited company, meant the previous HMO licence ceased to have effect. The owner did not contact the council during the transfer, and the property then required a new HMO licence application.

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The council licensing report on the application states: “The property had the benefit of an HMO licence issued by the council on the May 11 2020 to Mr. Hugh Curran and Ms. Bridget Mulholland with an expiry date of May 11 2025.

“In February 2021 the ownership of the property was transferred to Torrbeg Properties Limited and in accordance with section 28 of the 2016 Act the licence ceased to have effect on the date of transfer. The NIHMO Unit was not informed of the change of ownership at that time. An application for a new HMO licence was received from Torrbeg Properties Limited on August 2 2024.”

The council received a communication from Mr Curran stating: “On or about 1990 I purchased the dwelling 10 Sandymount Street. Since the date of purchasing, the premises have been let in multiple occupation, managed in compliance with all relevant planning and regulatory controls, and in absence of any adverse notices.

“In 2007 I retired from legal practice, and in 2019 in consultation with my accountant I was advised to transfer the premises to a private limited company. In February 2020 Torrbeg Properties Ltd was incorporated, with my wife Anne and I appointed the sole shareholders and directors, and the premises were transferred to the company in 2023.”

Houses of Multiple Occupation, or HMOs, which landlords lease out to three or more tenants from different addresses, have become increasingly controversial, with some arguing they have negatively affected communities and led to anti-social behaviour, in places like the Holyland and Stranmillis in South Belfast where landlords rent houses to undergraduates.

Applications for new HMO licences have increased in other parts of the city in recent months, notably in North Belfast, and have been consistently rejected by councillors in this part of the city. Licences are issued for five year periods.

HMO licence renewal cannot be refused on the basis of overprovision of such properties in an area, but new licences can be refused on this basis.

While the council policy is that HMOs should not account for more than 20 percent of any area of housing management, in reality many streets greatly exceed this, with some in the Holyland reaching over 90 percent. Outside housing policy areas the threshold is 10 percent.

As of October 17 2024, 76 percent of all dwelling units in policy area Sandymount was made up of HMOs and intensive forms of accommodation flats/apartments, which in turn exceeds the 20 percent development limit as set out at policy. There are 109, that is 64 percent licensed HMOs, with a capacity of 469 persons in the area.

On that date, out of 80 premises available for rent within the BT9 area on the website PropertyNews.com, there were 18 licensed HMOs containing 69 bedspaces. The HMO accommodation was available immediately.

The council said in its report: “The council recognises that there is a need for intensive forms of housing and to meet this demand, HMOs are an important component of this housing provision.

“HMOs, alongside other accommodation options within the private rented sector, play an important role in meeting the housing needs of people who are single, who have temporary employment, students, low-income households and, more recently, migrant workers.

“In September 2017 the Housing Executive published the document 'Housing Market Analysis Update – Belfast City Council Area' which states 'HMOs form an important element of the PRS, particularly for younger people on low incomes and for single people, under the age of 35, affected by the limitation of housing benefit to the shared room rate. Anecdotal evidence also indicates that this has been a popular sector with migrant workers'.”

It added: “Ulster University Director of Campus Life told members of the Council’s City Growth and Regeneration Committee that there was an 'increase in competition for HMO’s particularly from NIHE, Immigration Services and statutory agencies and there were increasing accommodation issues across the housing sector which required a holistic view and should include the consideration of international students, families and graduates looking for professional accommodation'.

“However, QUB Director of Student Plus confirmed to members that the current trend indicated a significant move of students to purpose-built student accommodation blocks.”

It states: “With the continued expansion of the purpose-built student accommodation sector and students transitioning from private rentals to PBMSAs, it is too early to tell whether the increased competition from nonstudents for HMOs is a temporary problem (which can be managed by the contraction in students residing in existing HMO accommodation within the locality) or evidence of an emerging long-term supply issue.”

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