Houses in Multiple Occupation

Introduction

In a few local authority areas, guesthouses, bed and breakfasts and holiday flats have been classed as HMOs. When this happens, the implications for a proprietor can be far reaching.

The Housing Act 2004 introduced mandatory licensing of HMOs and a new definition of HMOs.

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What is an HMO?

A house in multiple occupation is defined in the Housing Act 2004 as:

• an entire house or flat that is let to three or more tenants who form two or more households and who share a kitchen, bathroom, or toilet
• a house that has been converted entirely into bedsits or other non-self-contained accommodation, and which is let to three or more tenants who form two or more households and who share kitchen, bathroom, or toilet facilities
• a converted house that contains one or more flats that are not wholly self-contained (ie the flat does not contain within it a kitchen, bathroom and toilet) and that is occupied by three or more tenants who form two or more households
• a building that is converted entirely into self-contained flats if the conversion did not meet the standards of the Building Regulations 1991, and more than one third of the flats are let on short-term tenancies.

Tenants

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.

Therefore, holiday cottages let to families or other groups of people living together as one household for a holiday, who have a main home elsewhere, are not HMOs.

Where winter letting to groups of people who are not related is taking place, the premises may well be considered to be an HMO and you should seek advice.

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What being an HMO means

It is now clearer than it once was as to whether a property is an HMO. Owners who intend anything other than holiday letting should seek advice and talk to their local housing authority. If the premises are an HMO they will have to meet some strict standards as regards the amenities, and fire precautions in the building. Usually they will need to be licensed.

The great majority of holiday homes are not HMOs. Bed and breakfast accommodation may be if it is let to people who don't have another residence.

Licensing

Under the national mandatory licensing scheme an HMO needs to be licensed if it is a building consisting of three or more storeys and is occupied by five or more tenants in two or more households.

The council will grant a licence to an HMO if it is satisfied that:

• the HMO is reasonably suitable for occupation by the number of people allowed under the licence
• the proposed licence holder is a 'fit and proper person'
• the proposed licence holder is the most appropriate person to hold the licence
• the proposed manager, if there is one, is a 'fit and proper person'
• the proposed management arrangements are satisfactory
• the person involved in the management of the HMO is competent
• the financial structures for the management are suitable.

Enforcement

Environmental health officers, who are responsible for enforcing HMO legislation locally, have the right to enter a property at any reasonable time after giving 24 hours notice in writing. Also, they may serve legal notices requiring the provision or improvement of amenities.

Standards

Properties of the relevant type must be licensed throughout the UK, while local authorities have discretion to adopt additional licensing schemes as regards lower-risk properties. Before granting a licence, they will need to be satisfied that a set of standards are met. If they are not met, they will judge the property not to be reasonably suitable and refuse to grant the licence.

The standards come from a government circular. Most local authorities adopt similar sets of standards, but there are variations. The standards include requirements for fire precautions. See Fire Safety (General).

Appeals

If the proprietor feels that their property is being classed wrongly as an HMO by the local authority, they may appeal to a residential property tribunal.

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Further guidance

• Detailed advice on all of the above is available from local environmental health officers for the area in which the property is situated. They are contactable through the local authority.
• Further information, including the publication Landlords: Do you Need a Property Licence? is also available on the Department for Communities and Local Government Department for Communities and Local Government website , and the websites of most local authorities.

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