Houses in Multiple Occupation (HMO’S)
The Housing act 2004 has extended the definition of a House in Multiple Occupation (HMO) and introduced a National Licensing Scheme for these properties. This part of the Act came into force on April 6th 2006. The new Act introduces a National Licensing Scheme for HMOs of three storeys or more occupied by five or more tenants who make up two or more separate households, however, there are plans to reform HMO legislation with the introduction of the new Housing Bill. Section 2 of this Bill deals with homelessness and housing. It is understood that the change will effect Landlords. The reason for this is at present groups of people over 5 in a shared house constitutes an HMO. But under the new Bill any more than 2 unrelated persons sharing a house or flat will constitute an HMO. Each council adopts different policies over the control of HMO’s, currently Brent Council has not updated there website so as they confirm there views we will alter the information on our website.
The following Information was provided from the Department for Communities and Local Government on 17th July 2006
http://www.communities.gov.uk/index.asp?id=1151996
Q How do I know if I need a license?
A If you can answer yes to the following questions you may need a licence:
- Do you rent out property?
- Does your property have three or more storeys (including habitable attics or basements)?
- Does your property have five or more unrelated tenants?
- Any of your tenants unrelated to each other?
You should check with the local authority where your property is located as some local authorities may also licence smaller HMOs.
Q Is the licence per landlord or per property?
A A separate licence is needed for each property. The licence holder and the person who manage the property will have to be considered ‘fit and proper’ for the licence to be granted. A licence may not relate to more than one property and is not transferable to a different property, or to a different person.
Q Is the licence for the owner or the manager of the property?
A The landlord can hold the licence or nominate someone else such as a manager or agent (with their agreement) to be the licence holder. Whoever holds a licence must be the person who is most appropriate to hold the licence for the property and this is likely to be the person who receives the rent for the property. A licence may not relate to more than one property and is not transferable.
Q Which council department will be responsible for HMO licensing?
A It will be up to the individual local housing authority to decide but, in most instances, it will be the housing or environmental health department that will be responsible for HMO licensing.
Q Are some councils providing grants to help landlords comply with HMO regulations?
A Local housing authorities may make some funding available in certain circumstances to help landlords carry out work on their properties. You should contact the local housing authority in which your properties are situated directly to see if this is available.
Q What are the minimum standards set for HMOs?
A The Government has specified minimum amenity standards, setting out the requirements for kitchens, bathrooms and toilets in an HMO. Local housing authorities may use their own amenity standards if they are equal to or higher than the minimum standards. You should contact the local housing authority in which your property is situated to find out the standards you will have to meet.
If your property does not hold enough amenities for the number of tenants the local housing authority can either:
- grant a licence with conditions that extra amenities will be put in within a specified timeframe
- grant a licence for a smaller maximum number of occupants based on the amenities which are installed
- in properties with the worst conditions they may decide not to grant a licence at all if they cannot be brought up to required standards.
Q Will I have to evict tenants to make sure that my property is not housing more than the licence allows?
A Landlords may not evict existing tenants to avoid licensing or to comply with the maximum number of occupants allowed in the property It is considered reasonable that the tenants were in occupation at the time the licence was granted and landlords will not be penalised. However, when the tenancy comes to an end, landlords or agents will be committing an offence if new tenants are allowed to move in bringing the total occupants above the maximum number permitted under the licence.
Q What happens if I fail to register for a licence?
A Failure to apply for a licence is a criminal offence and can result in a fine of up to £20,000.
Useful Addresses
Brent Council
Private Housing Services
Mahatma Gandhi House,
34 Wembley Hill Road,
Wembley,
Middlesex, HA9 8AD
P: 020 8927 2976
Department for Communities and Local Government,
Eland House,
Bressenden Place,
London,
SW1E 5DU
P: 020 7944 4400.
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