HMO stands for House in Multiple Occupation, and the law relating to these properties changed on 6 April 2006 for properties in England. 

1. Is my property an HMO? The Housing Act 2004 changed the definition of an HMO.  Now, basically, a property will be an HMO if more than two people in more than two "households" share living accommodation. 

A "household" is either a family unit (e.g. relatives living together - including half blood relatives) or a couple living as man and wife (or an equivalent same sex relationship). For example, a flat with three students sharing will technically be an HMO, but not if all the occupants are brothers, or if two of them are a couple.  Domestic staff are also included in the definition of a household, e.g. a live in nanny. 

2. What is the significance of a property being an HMO? There are two main consequences:

  • First, you will need to comply with the HMO management regulations which set out additional requirements with which HMO landlords and managers have to comply. These include providing contact details for the landlord/manager, ensuring that the property is safe, arranging for checks of electrical installations at least once every five years, keeping the common areas clean and safe, and ensuring that rubbish is dealt with properly.
  • Secondly, you may need to get a license from your Local Authority

3. How do I know whether my property needs to be licensed? The mandatory licensing requirement will apply if your letting is in a building consisting of three or more storeys and is occupied by five or more tenants in two or more households.  Habitable attics and basements should be included when looking at the number of storeys. 

However, although all properties which meet this definition will need to be licensed, Local Authorities also have the power to require other properties to be licensed, and this can include properties which are not HMOs.  As the licensing scheme has just been introduced, most Local Authorities are just requiring properties within the definition to be licensed, however some are already requiring other properties to be licensed, and those who are not may extend their current scheme in the future.

For a property to be licensed, it will have to be managed by a ‘fit and proper person' and comply with the amenity standards set by the local authority concerned. 

Note that at the time of writing, the regulations have not yet been introduced in Wales, and Scotland already has a licensing scheme. 

4. What should I do now?

  • It is essential that you contact your Local Authority (to find contact details go http://www.localauthoritydirectory.co.uk/) to see what the requirements are in your area, and to get on their mailing list so you can  be kept informed of development
  • If your Local Authority has a landlords forum, join this and attend forum meetings. 
  • Make sure you are kept informed of what is happening, there are a lot of new legal developments pending and it is essential that landlords are kept up to date.  For example join your local Landlords Association,  subscribe to an online information service (such as the authors service Landlord-Law at http://www.landlordlaw.co.uk/) or take out a subscription to a Landlords journal. 
  • Find out what the basic amenity standards are for properties in your area, and make sure that your property complies with these. 

Tessa is a solicitor and editor of the popular online service http://www.landlordlaw.co.uk/, which has more information for HMO landlords at http://www.hmoinfo.co.uk/. 

© Tessa Shepperson