Houses of Multiple Occupation (HMO's)

On 6 April 2006 mandatory HMO licensing came into force across England. Landlords whose property is classed as a HMO should read on to find out what they need to do to prepare. Licensing will raise the standard of accommodation for people living in HMOs.

Why does it exist?

Mandatory licensing for HMO landlords aims to raise standards of accommodation in the private rented sector. HMOs provide essential affordable housing for many tenants who need it. HMO licensing is intended to ensure that all these properties enjoy a decent minimum standard of management. Raising standards of management will benefit tenants and the wider community as well as landlords who already manage their properties well.

Collectively, badly managed properties can drive down values in an area, which many landlords find frustrating.

What is a 'House in Multiple Occupation'?

Under the changes in the Housing Act 2004, if you let a property which is one of the following types it is a House in Multiple Occupation:

• An entire house or flat which is let to 3 or more tenants who form 2 or more households 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 3 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 3 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 and the same will apply to properties which are used as domestic refuges.

Who does it affect?

Landlords letting the largest HMOs, those on three or more storeys with five or more people in two or more households living in them, must apply for a mandatory licence. Some councils may choose to license landlords with smaller HMOs as well.  For the purposes of licensing a household comprises any tenants who are members of the same family living together including couples (whether or not they are married), relatives and half-relatives or step-relatives, adopted and fostered children.  A group of friends sharing a house will not be a single household.

How do I get a License?

You should contact your local authority for an application form. The local authority will grant a licence if it is satisfied that:

• The proposed licence holder and any manager of the property is a fit and proper person.
• Proper management standards are being applied at the property.
• The HMO is reasonably suitable, or can be made suitable, for occupation by the number of tenants allowed under the licence. To determine this the local authority will consider the number, type and quality of bathrooms, toilets and cooking facilities available for the occupants.

How much does it cost?

Each local authority will set its own fee level for licence applications. You should contact the local authority for the area where your properties are situated to find out the cost of licensing them. Licensing fees should reflect the actual costs of licensing a property with a fee structure which is fair and transparent.