HMO regulations and licensing

Finance4's interpretation of HMO regulations and licensing laws

Since April 2006, houses in multiple occupancy (HMO) licensing has become mandatory for certain property types. There are four different groupings that would make a property an HMO, that wouldn't necessarily mean an HMO licence was mandatory, however you will probably require specialist HMO mortgage advice

1) A house that has within it, bedsit type units that are not completely self contained i.e. they share some basic facility. The house would have to be let to three or more tenants forming two or more households.

2) A flat or house that is let to a least three tenants, who are living as at least two households whilst sharing a basic facility.

3) Flats within a converted house that are not fully self contained, and that are let to three or more tenants, comprising at least two households.

4) Converted self contained flats within a building that did not meet the standards of the 1991 building regulations, and where there are short term tenancies on more than a third of the flats.

Exemptions to HMO licensing and regulations could be where the above properties are:

Occupied by a maximum of two lodgers and the owner of the property.

Occupied by just two people.

Where the occupiers have their main residence elsewhere.

Where the occupiers are living as a religious community.

Where the building is owned or managed by an educational body.

A block of self contained flats that comply with 1991 building regulations.

HMO LICENSING IS MANDATORY FOR PROPERTIES THAT:

Are three or more storeys, occupied by five or more people, who form two or more households and share a basic facility. A storey would include a habitable loft or basement. A household would be a couple living together as partners regardless of sex or marital status, or relatives living together. Friends living together would be classed as two separate households.

If you are considering purchasing a house in multiple occupancy please call Finance4 on 0800 019 9605

How do you go about getting an HMO licence?

First stop is the relevant Local Housing Authority, you will have to complete a form and pay a fee. The form and the fee will vary according to the authority, government guidelines say that the fee should only cover the administration cost of the application.

If you are deemed to be a fit and proper person (pretty much anybody who is not currently serving a prison sentence), if the property meets fire regulations, is deemed suitable for the number of tenants living there and has one kitchen, bathroom and toilet for each five tenants, you should be granted an HMO licence.

An HMO licence is not transferable to another landlord or property, although if you are intending to purchase an existing HMO licenced property, it should be a fairly routine process.

It is a criminal offence to operate an HMO without a licence if one is deemed necessary.