12.—(1) In considering whether the granting of a licence will result in overprovision in a locality for the purposes of section 8(2)(d), the council must have regard to—
(a)the number and capacity of licensed HMOs in the locality,
(b)the need for housing accommodation in the locality and the extent to which HMO accommodation is required to meet that need, and
(c)such other matters as the Department may by regulations specify.
(2) It is for the council to determine the localities within its district for the purposes of this section.