Landlord Fit and Proper Person Assessment Guide

The fit and proper person test is the gatekeeper of the property licensing system. Under Sections 66 and 89 of the Housing Act 2004, local authorities must be satisfied that the proposed licence holder (and the proposed manager, if different) is a fit and proper person before granting an HMO licence or a selective licence. This assessment is not a formality; it is a substantive evaluation that can and should result in refusal where the applicant does not meet the standard. With the Renters' Rights Act 2025 introducing mandatory PRS Database registration and the PRS Ombudsman, the fit and proper person concept is becoming more prominent in PRS regulation. The PRS Database will hold enforcement history that informs these assessments nationally, not just locally.

The Housing Act 2004 requires the council to consider whether the applicant: 1. Has committed any offence involving fraud, dishonesty, violence, or drugs, or any offence listed in Schedule 3 to the Sexual Offences Act 2003 2. Has practised unlawful discrimination on grounds of sex, colour, race, ethnic or national origins, or disability in connection with any business 3. Has contravened any provision of the law relating to housing or of landlord and tenant law 4. Has acted otherwise than in accordance with any applicable code of practice approved under Section 233 of the Housing Act 2004 5. Has contravened the Equality Act 2010 The council must also have regard to whether the person has sufficient management structures and funding arrangements in place to ensure satisfactory management of the property. This is not an exhaustive list. The word "having regard to" means the council must consider these factors but may also consider other relevant matters. Case law has confirmed that councils have broad discretion in assessing fitness.

A robust fit and proper person assessment involves several steps: 1. Self-declaration: The application form should require the applicant to declare any criminal convictions (spent and unspent), civil penalties, enforcement notices, and involvement in housing-related litigation. A false declaration is itself grounds for refusal. 2. Internal checks: Cross-reference the applicant against the council's own records. Has the council previously served improvement notices, issued civil penalties, or received complaints about properties managed by this person? 3. Rogue Landlord Database: Check the national database of rogue landlords and property agents. This is a mandatory check since April 2018. 4. Other councils: Where the applicant is known to operate in other areas, consider contacting those councils for enforcement history. The PRS Database will automate this from late 2026. 5. DBS checks: The Housing Act 2004 does not require DBS checks, and most councils do not carry them out for standard licensing. However, for properties housing vulnerable tenants, some councils request basic DBS checks as part of their assessment. 6. Companies House: Where the applicant is a company, check the directors' history, any dissolved companies, and whether any directors have been disqualified. The assessment should be documented in a structured template that records each factor considered, the evidence reviewed, and the conclusion reached. This protects the council if the decision is appealed to the First-tier Tribunal.

Spent convictions: Under the Rehabilitation of Offenders Act 1974, spent convictions generally need not be disclosed. However, the fit and proper person assessment is not a DBS check and is not subject to the filtering rules for DBS. Councils should still consider spent convictions where relevant, but weigh them against the time elapsed and any evidence of rehabilitation. Civil penalties in other areas: A landlord who has received a civil penalty from another council may still be fit and proper, depending on the nature and severity of the offence. A single technical breach handled promptly is different from repeated, deliberate non-compliance. Company applicants: Where the licence holder is a limited company, the fit and proper assessment applies to each director and to the proposed manager. If any director fails the test, the company cannot hold the licence. Joint applicants: Where a property is co-owned, both owners need not be the licence holder. But if both are proposed as licence holder and manager, both must pass the test. Change of circumstances: If information comes to light after a licence is granted that would have affected the fit and proper assessment, the council can revoke the licence under Section 70 (HMO) or Section 93 (selective).

Where the council concludes that the applicant is not a fit and proper person, the licence must be refused. The council must give the applicant notice of the proposal to refuse, including the reasons, and allow at least 14 days for representations. If the council proceeds with refusal after considering representations, the applicant can appeal to the First-tier Tribunal (Property Chamber) within 28 days. The Tribunal considers the matter afresh, not just whether the council's decision was reasonable. To defend refusals at tribunal, councils need: - A clear, documented assessment process - Evidence supporting each reason for refusal - Consistency with previous decisions (treating like cases alike) - A published policy setting out the approach to fit and proper person assessments The Renters' Rights Act 2025 strengthens the fit and proper person framework by ensuring that enforcement history is visible nationally through the PRS Database. A landlord who fails the test in one area can no longer simply apply in another area where their history is unknown.