Houses in Multiple Occupation (HMOs)
Houses in multiple occupation (HMOs) are a valuable source of accommodation for many people, particularly those groups that are deemed most vulnerable.
There are two different types of HMOs, those that are licensable and those that are not. Regardless of the type of HMO, as a landlord you have a responsibility to provide a safe and decent home.
HMOs that need licenses are deemed to be of higher risk to health.
What is an HMO?
Under the changes in the Housing Act 2004, if a landlord lets a property which is one of the following types, it is an HMO.
- an entire house or flat which is let to three or more tenants who form two or more households (Members of the same family living together) and who share a kitchen, bathroom or toilet.
- a house which has been converted entirely into bedsits or other non-self-contained accommodation and which is let to three or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities.
- a converted house which contains one or more flats which are not wholly self contained (i.e. the flat does not contain within it a kitchen, bathroom and toilet) and which is occupied by three or more tenants who form two or more households.
- a building which is converted entirely into self-contained flats if the conversion did not meet the standards of the 1991 Building Regulations and more than one-third of the flats are let on short-term tenancies.
In order to be an HMO the property must be used as the tenants' only or main residence and it should be used solely or mainly to house tenants.
Properties let to students and migrant workers will be treated as their only or main residence. The same will apply to properties which are used as domestic refuges and may require an HMO license.
What is a licensable HMO?
If your property is an HMO (please see above) and:
- all or some of your tenants share facilities (such as a bathroom or kitchen)
and
- the property is three or more storeys
and
- there are five or more occupants comprising of two or more families;
a mandatory license for an HMO is required from your local authority. It is an offence to operate a licensable HMO without a license.
HMO licenses are not intended to reduce the number of HMOs or to change how they are occupied. Because certain HMOs are thought to have high risks, the licenses aim to improve the physical conditions and management standards of existing HMOs in the private rented sector.
You are not allowed to evict tenants in order to bring the number of occupants in the property below the threshold for licensing it.
What is additional licensing for HMOs?
The introduction of mandatory licensing for certain types of higher risk HMOs (introduced by Housing Act 2004) enables local authorities to establish discretionary additional HMO licensing schemes, subject to approval from the Secretary of State, to cover smaller types of HMO where management problems have been identified.
Additional licensing is when a council can impose a licence on other categories of HMOs in its area which are not subject to mandatory licensing. The council can do this if it considers that a significant proportion of these HMOs are being managed sufficiently ineffectively so as to give rise to one or more particular problems, either for the occupants of the HMOs or for members of the public.
Management regulations for HMOs
The landlord or managing agent of any HMO must comply with management regulations. These regulations set standards for the running and maintenance of the HMO. It includes duties such as ensuring the safety of the gas and electricity supply and keeping the fire detection in working order.
The management regulations for shared houses and bedsits come under the Management of Houses in Multiple Occupation (England) Regulations 2006.
If you require full details of the regulations you can obtain a copy from The Stationery Office Ltd or by clicking here.
The management regulations for buildings that have been converted into flats (but do not comply with building regulations) are under The Licensing and Management of Houses in Multiple Occupation (Additional Provisions) (England) Regulations 2007.
If you require full details of the regulations you can obtain a copy from The Stationery Office Ltd or by clicking here.
What action can be taken if I don’t have a licence?
It is a criminal offence to operate an HMO without applying for a licence, and you could be fined up to £20,000. Your local authority, and in certain circumstances the tenant, can apply for a rent repayment order, under which they can reclaim the rent paid during the period up to a maximum of 12 months when you did not have a licence, or if a licence application is outstanding.
A landlord without a licence will also be unable to use a section 21 notice to evict tenants. (A section 21 notice can be used by landlords to serve notice to quit on tenants simply because he wants to regain possession of his property, not on grounds of rent arrears or other reasons.)
To find out further information regarding property licences click here.