Jurisdiction(s):
United Kingdom

England and Wales Court of Appeal: co‑operative committee decision‑making defeats HMO licensing exemption (HA 2004 Sch 14 para 2B)—Housing 35 Plus Ltd v Nottingham City Council

Published on: 20 March 2026

Published by a LexisNexis Local Government expert

Legal News

Article summary

What are the practical implications of this case?

HMO licensing aims to keep shared accommodation properly run and safe for residents. This judgment underlines the stringent bar for co‑operative societies trying to claim an HMO licensing exemption. Any organisation seeking to rely on it must have rules that explicitly require members to take every management decision; such powers cannot be handed to a committee. If a committee holds independent decision‑making authority, the exemption will not apply. H35 will probably now need to secure licences for all of its HMOs. The ruling brings welcome clarity to how HA 2004 operates and confirms that organisations cannot sidestep licensing duties through technical readings of constitutional rules that do not mirror genuine governance. It confirms that the exemption in HA 2004, Sch 14, para 2B applies only where members themselves make all management decisions. Co‑operatives intending to rely on this route must draft governance provisions with care to ensure compliance.

What was the background?

H35 is a mutual‑benefit, non‑profit housing co‑operative society operating...

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