HMO Licensing– Houses in Multiple Occupations

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As a general guide, the definition of a house in multiple occupation (HMO) is that three unrelated people share a property’s facilities. In April 2006, however, the Government introduced licensing for some types of properties that are classed as an HMO in England and Wales.

These new licensing rules mean that a property that is on three or more habitable storeys (including attics or basements) and is occupied by five or more people (who are not all in the same family) who share some communal rooms is defined as an HMO that requires a licence.

While this is the general guideline, rules around HMOs and licensing are complex and you should work with a lettings’ agency specialising in HMOs, or with your local authority, to find out whether or not you need a licence.

For example, a two-storey property with five or more people forming two households is also an HMO and some local authorities require these to have ‘additional licensing’, which, depending on your local authority, you may or may not need. Each local authority can interpret HMO rules differently, so get individual advice from each one.

Typical rules for a licensed HMO are;

A minimum room size for one individual (6.5 square metres is a typical minimum).
Not allowing more than two people to sleep in each room, including children.
Meeting stringent fire regulations, such as fire doors, fire extinguishers, smoke alarms and fire blankets in all kitchen areas.
Having emergency lighting in areas such as a hallway that would be used to escape fire or flood.
Upgrading floors and ceilings to enhance sound proofing.

Landlord insurance policy holders of HMOs must apply to their local authority for a licence and it will last for a maximum of five years. Fees vary widely (from £300 to £1,1 00), but they are allowed to offer reductions to landlords on their accreditation schemes or to those who pay promptly. It is usually the landlord who is responsible for paying council tax on HMO premises.

Where are the best locations for Houses in Multiple Occupations?

These larger properties are usually found in the older parts of cities. A group of people who haven’t chosen to live with each other are unlikely to eat together, so it helps to be near grocery shops. You will need plenty of parking spaces near the property.

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HMO Licensing– Houses in Multiple Occupations

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