HMO
HMO (HOUSE IN MULTIPLE OCCUPATION)
If you let your property to several tenants who aren’t from the same family, it may be a ‘House in Multiple Occupation’ (HMO)
Your property is an HMO if both of the following apply:
– At least 3 tenants live there, forming more than one household
– Toilet, bathroom or kitchen facilities are shared
A household consists of either a single person or members of the same family who live together, and also includes people or living together as partners.
Examples of what does and does not constitute a HMO.
HMO?
Description
2 bedroom house or flat with 2 unrelated tenants
2 bedroom house with 1 cohabiting couple and 1 unrelated tenant
3 bedroom flat with 3 unrelated tenants
3 bedroom house with, brother, sister and cousin sharing
All properties rented out to three or more tenants who aren’t family, are classed as HMO. But what does this mean for landlords? Do you need to apply for an HMO licence? The answer depends on the borough your property is in. Please note that properties which have been converted into self -contained flats but do not comply with the relevant building regulations may be classified as ‘Section 257 HMOs’ and will need licensing.
Mandatory Licensing
HMOs and Mandatory licensing have long been a cause for concern for landlords, as the rules for licensing vary according to the type of property. Previously, a HMO property required a mandatory license if it was occupied by more than five people across two or more properties, but only if the property was at least three storeys high. However, as of the 1st of October 2018, the rule regarding the height of the building was removed nationally, and all properties occupied by more than five tenants within two or more households require a mandatory license.  This is also applicable to two storey houses, bungalows and flats.
Additional Licensing Schemes
Additional Licensing schemes are areas designated by the council where HMO licensing is required for all properties that have three or more tenants forming more than one household.
London boroughs such as Haringey and Camden have introduced an additional borough-wide licensing scheme for HMOs which means that all HMO properties must be licensed. It is safe to say that other boroughs will eventually follow suit or will introduce specific additional licensing areas within their respective boroughs.
Selective Licensing
Selective licensing is at the discretion of the borough and can affect all rental properties regardless of size, number of storeys, or number of occupants. For example, a council can instigate compulsory licensing of all residential rental properties within a street, ward or the whole borough.
The council can introduce a selective licensing scheme which will demonstrate a link between the private rented sector and anti-social behaviour. It is envisaged that the scheme will benefit the local community and it would ensure that all private rented property within the designated area is managed to a satisfactory standard.
The aim of selective licencing is to improve the management of these properties, ensure that they have a positive impact on the area and achieve the following:
- Reduced anti-social behaviour
- Increased professionalism from landlords
- Improvements in the quality and management of properties
- Reducing environmental costs such as street cleansing and fly tipping
- Landlords and agents who are easily identifiable
- Protecting vulnerable groups within privately rented accommodation
- A mixed and vibrant community that people enjoy living in
A licence will be granted if the local authority is satisfied that the owner and any managing agent of the property is fit and proper to hold a licence, and that the property meets required standards.
If you are unsure as to whether or not your property requires a licence, please contact the local council directly or contact Blackstones to be in touch with a HMO team member who will deal with your enquiry accordingly.
Free HMO Consultancy
Please complete the form below to arrange a free no obligation HMO consultancy.