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HMOs that require licences

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Greg Myles
Greg Myles

HMOs, or Houses in Multiple Occupation, are properties occupied by three or more people from different households who share basic amenities. There are different tests to determine if a property qualifies as an HMO, including if it is occupied by multiple households who share facilities. All HMOs must comply with regulations regarding management, fire safety, maintenance, and more to protect tenants. The manager is responsible for ensuring standards are met and can face penalties for noncompliance.

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Houses in Multiple Occupation (HMOs) Regulations
HMOs – Housing Act ‘04 • Several ‘tiers’ of HMO – some require licensing, others do not • All HMOs (whether licensed or not) must comply to HMO regulations (The Management of HMO (England) regulations 2006) • Properties may fall in and out of definition depending on the make up of tenants
HMO - definition • Several ‘tests’ to establish if an HMO: • The standard test (regular self-contained properties such as a semi or terrace) • The self-contained flat test • The converted building test
Standard and self-contained flat test • Occupied by three or more people and • Occupied by two or more households • Two or more of the households share toilet, personal washing facilities or cooking facilities (or the accommodation lacks one of these amenities)
Converted building test • Same as previous but no requirement to share amenities • Converted building definition is – The building has been converted from a single property into one or more units of accommodation (s.254(8) HA ’04) • One or more of the units of accommodation are not self-contained flats (whether or not it also contains some units that are self-contained flats)
How to manage a HMO • All HMOs must have a manager who is responsible for ensuring standards • The ‘person managing’ the property includes both the individual/s receiving the rent from the property and any appointed agent or trustee • Legislation sets out requirements but the fine detail will be provided by local authority (landlords should speak with local authority to ensure compliance)
‘Manager’ requirements • Manager contact details on display • Escape from fire and fire precautions maintained • Steps are taken to protect occupants from injury • Maintain water supply and drainage • Annual gas safety check and electrical installations check every 5 years • Repair and keep clean all common parts and installations, and ensure common parts have adequate lighting
‘Manager’ requirements • Unit and furniture are clean at the start of the tenancy • Maintain internal structure and installations and ensure that there is appropriate collection of waste • Provide adequate waste and storage facilities and ensure that there is appropriate collection of waste
Non compliance • Criminal offence not to comply with these regulations (although there is a defence of ‘reasonable excuse’) • Penalty on summary conviction being a fine not exceeding £5000, or (in England only) the option of a civil penalty not exceeding £30,000 • Tenant must not hinder the manager in meeting their obligations and must allow access at reasonable times. Tenants must behave in a ‘tenant like manner’ to assist the manager

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HMOs that require licences

  • 1. Houses in Multiple Occupation (HMOs) Regulations
  • 2. HMOs – Housing Act ‘04 • Several ‘tiers’ of HMO – some require licensing, others do not • All HMOs (whether licensed or not) must comply to HMO regulations (The Management of HMO (England) regulations 2006) • Properties may fall in and out of definition depending on the make up of tenants
  • 3. HMO - definition • Several ‘tests’ to establish if an HMO: • The standard test (regular self-contained properties such as a semi or terrace) • The self-contained flat test • The converted building test
  • 4. Standard and self-contained flat test • Occupied by three or more people and • Occupied by two or more households • Two or more of the households share toilet, personal washing facilities or cooking facilities (or the accommodation lacks one of these amenities)
  • 5. Converted building test • Same as previous but no requirement to share amenities • Converted building definition is – The building has been converted from a single property into one or more units of accommodation (s.254(8) HA ’04) • One or more of the units of accommodation are not self-contained flats (whether or not it also contains some units that are self-contained flats)
  • 6. How to manage a HMO • All HMOs must have a manager who is responsible for ensuring standards • The ‘person managing’ the property includes both the individual/s receiving the rent from the property and any appointed agent or trustee • Legislation sets out requirements but the fine detail will be provided by local authority (landlords should speak with local authority to ensure compliance)
  • 7. ‘Manager’ requirements • Manager contact details on display • Escape from fire and fire precautions maintained • Steps are taken to protect occupants from injury • Maintain water supply and drainage • Annual gas safety check and electrical installations check every 5 years • Repair and keep clean all common parts and installations, and ensure common parts have adequate lighting
  • 8. ‘Manager’ requirements • Unit and furniture are clean at the start of the tenancy • Maintain internal structure and installations and ensure that there is appropriate collection of waste • Provide adequate waste and storage facilities and ensure that there is appropriate collection of waste
  • 9. Non compliance • Criminal offence not to comply with these regulations (although there is a defence of ‘reasonable excuse’) • Penalty on summary conviction being a fine not exceeding £5000, or (in England only) the option of a civil penalty not exceeding £30,000 • Tenant must not hinder the manager in meeting their obligations and must allow access at reasonable times. Tenants must behave in a ‘tenant like manner’ to assist the manager