Licensing is becoming a requirement for more and more landlords, especially for HMOs. Find out if your property is falling short of the latest licensing legislation and what you need to do if it is.
What is a HMO?
A House in Multiple Occupation (HMO) is classed as a property where three or more people live, who make up two or more households and share basic facilities such as a kitchen or bathroom. A household is either a single person or members of the same family. Professional sharers and students are the most common example of tenants where more than one household live in the same property.
What are the types of licensing?
Mandatory licensing of large HMOs
This applies nationwide for HMOs where there are five or more people in a property that is three storeys or higher. The tenants also have to make up two or more households, so a family of five would not need licensing.
Additional licensing
A council can impose a policy requiring other sizes of HMOs to also be licensed and this is referred to as Additional HMO licensing. For example, a council can bring in additional licensing that requires all HMOs to be licensed.
Selective licensing
This is at the discretion of the borough and can affect all rental properties regardless of size, number of storeys, or number of occupants. For example, a council can introduce compulsory licensing for all residential rental properties within a street, ward or the whole borough.
Before granting a licence, the local authority must be satisfied that the owner and any managing agent of the property is fit and proper to hold a licence and that the property meets required physical standards.
For example:
A two storey, three bedroom house in Camden occupied by a couple and two professional sharers would not come under Mandatory Licensing as there aren’t enough people in the house and the house isn’t big enough. It does however come under Additional Licensing due to the local council's requirements, which applies to all HMOs.
How do I know if my property needs a licence?
Mandatory Licensing will apply to you if you have five or more occupants in a property that is three or more storeys high, as long as the occupants are not just made up of one household.
However, licensing may also apply to you even if the Mandatory Licensing does not, depending on whether Additional or Selective Licensing is in place.
The only way that you can check if your property needs a licence is to look at the specific licensing rules in place for your borough. We have a comprehensive list of the boroughs we cover’s HMO web pages and contact details so that you can check what licensing rules might apply to you.
What are the repercussions of not applying for a licence?
Operating a HMO without the correct licensing is a criminal offence and can result in the owner being fined an amount that can go into thousands of pounds. The local authorities can also use other means of enforcement.
Check out our guide to licensing and HMOs for the answers to other commonly asked questions about HMOs and licensing.
If you are interested in having your home valued, then take advantage of our free, no obligation valuation service.
