|
 Information
for landlords letting or thinking of letting a House in Multiple
Occupation (HMO) -
On
6 April 2006, HMO licensing was introduced under the provisions
of the Housing Act 2004.
Listed
below is information issued by Government, local Government
and Landlords Organisations on this very complex issue.
All
local authorities must licence properties that are at least
three or more stories high with five or more persons who form
two or more households. This is known as mandatory licensing.
Provision has also been made for discretionary licensing where
local authorities can extend the licensing system to include
other HMOs. This is known as additional licensing
What
is an HMO (House in Multiple Occupation)?
A
house in multiple occupation (HMO) is any building or part
of a building such as a house, flat, maisonette, bungalow
etc that is occupied by people who do not live as a single
household (such as people in a family relationship) and where
they share (or lack) one or more basic amenities, such as
a toilet, or personal washing and cooking facilities. Bed-sit
accommodation and houses or flats occupied by sharers where
there is no family relationship are examples of HMOs.
A
HMO can also be a house or building that has been converted
into self-contained flats, if the conversion was below the
standards set by the Building Regulations 1991 and at least
one third of the flats are tenanted. A purpose-built block
of flats is not an HMO (however, an individual flat within
it might be if it is let to three or more tenants).Another
example is a converted building where there is a mix of self-contained
and non self-contained accommodation.HMOs that consist solely
of self contained units are exempt from mandatory licensing.
The council do not propose to include these properties as
part of the new application for additional licensing.
Under
the changes in the Housing Act 2004, if a landlord lets a
property which is one of the following types it is a House
in Multiple Occupation:
- an
entire house or flat which is let to three or more tenants
who form two or more households and who share a kitchen,
bathroom or toilet (for a definition of household please
see the frequently asked questions)
-
a house which 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 which contains one or more flats which
are not wholly self contained (ie the flat does not contain
within it a kitchen, bathroom and toilet) and which is occupied
by three or more tenants who form two or more households
- a
building which is converted entirely into self-contained
flats if the conversion did not meet the standards of the
1991 Building Regulations and more than one-third of the
flats are let on short-term tenancies
- 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
Back to top
Living
in shared accommodation
If
you live in a property in which three or more people live,
at least one of whom is unrelated to the others and where
you share facilities your council will call this type of accommodation
a 'House in Multiple Occupation' or HMO.
Special
rules apply to the management of HMOs and some may need a
property licence.
Back to top
Do
I live in an HMO?
If
you live in a property with two or more people who are not
related to you or a partner and at least one of you pays rent,
share kitchen, bathroom or toilet facilities you probably
live in an HMO.
The
following types of accommodation are often described as an
HMO:
- some
shared houses or flats
- a
house converted into bed sits
- some
hostels some guesthouses
-
some bed and breakfast establishments and hotels
-
some types of houses converted into flats
Back to top
Certain
types of shared accommodation are not considered HMOs. Examples
include:
- a
house or flat occupied by only two persons
-
a house or flat with a resident landlord plus two other
occupiers
- houses
converted entirely into self contained flats with appropriate
Building Regulations approval, where at least two thirds
are owner occupied
- a
house or flat managed by the council or a registered social
landlord
-
a house or flat registered under the Care Standards Act
2000
- accommodation
managed by certain higher educational establishments
- health,
police or fire authority accommodation
Back to top
What
are the standards?
Your
landlord is responsible for making sure your home is kept
in repair and is suitable for multiple tenants. If your home
has to be licensed the local housing authority can impose
conditions to ensure that the property is occupied by no more
than the permitted number of persons.
Your
council will also check the facilities and ensure that the
property is properly managed. Whether or not the HMO in which
you live is licensed by the council, your landlord must comply
with management regulations. Your home should be also be free
of any hazards likely to seriously impact upon your health
and safety.
If
you think there is a hazard in your home you should contact
the council. In all rented properties utilities, like gas,
must comply with safety regulations and all furniture should
pass fire safety standards.
The
landlord has a duty to ensure that a gas safety check is performed
annually and a certificate issued. You are entitled to see
the certificate.
Licensing
requirements and exemptions
As
of 6 April 2006 it is compulsory to license shared accommodation
of three or more storeys which is occupied by five or more
people who live in two or more separate households. A household
may be made up of two people who are married, to each other,
or are civil partners.
The household may also be made up of people related to each
other, or may include nannies or other domestic staff living
with the family. Local authorities also have powers to operate
additional HMO licensing schemes to apply to properties with
less than three storeys and occupied by less than 5 people
in their areas.
If
you are not sure about any of the licensing issues surrounding
your accommodation, you should contact your council. Your
landlord is not allowed to evict tenants in order to bring
the number of occupants in the property below the threshold
for licensing it.
If your landlord threatens you with eviction you should contact
your council immediately. Your council will have details of
out-of-hours information lines and emergency contact numbers.
Contact your housing advice centre for full information on
the support services that are available to you.
If you think you are living in a property which should be
licensed but isn't, you can report your landlord to the council.
Back to top
Source
for above © Crown Copyright - jml Property Services hold a
Core Licence C02W00008738
Definition
of a "House of Multiple Occupation" (HMO) -
Will
I have to get a licence for my property?
To
find out whether your property will have to be licensed requires
a two step process:
One: Compare your property to
the criteria in the new definition of an HMO in the Housing
Act to establish whether your property is an HMO.
Two: Not all HMOs will have to
be licensed. Once you have established that your property
is an HMO under the new legislation you then need to think
whether your property has 3 or more floors AND 5 or more tenants.
If so you will have to apply for a licence. If not, it will
not have to be licensed under the national plans but local
authorities will have the right to introduce local HMO licensing
for certain types of properties if they feel there is a need.
Back to top
The
Housing Act 2004 defines an HMO as one of the following (part
7 section 254):
- A
building with one or more units of accommodation which are
not self-contained flats, occupied by people who are not
in one household who pay rent, occupy the property as their
main or only residence, are the only people to use that
accommodation and share a kitchen, bathroom or toilet. If
the building contains a mixture of self-contained flats
and non-self-contained accommodation the building will still
be considered an HMO owing to the presence of non-self-contained
accommodation where people are sharing facilities.
- A
converted building with at least one unit of accommodation
which is not self-contained, occupied by people from more
than one household who pay rent and occupy it as their main
or only residence. As with the first definition, such a
building may have self-contained flats in it as well but
the presence of non-self-contained accommodation will mean
that the building is an HMO.
- (Unlike
the first definition, the occupants of the non-self-contained
accommodation do not have to be sharing kitchen and bathroom
facilities for the building to be an HMO.)
- A
self-contained flat may also be an HMO if it is occupied
by people who are more than two households who pay rent,
occupy the flat as their main or only residence, are the
only people to use that accommodation and share a kitchen,
bathroom or toilet.
-
A building converted into self-contained flats, less than
two-thirds of which are owner-occupied, will be an HMO if
the building work did not comply with building regulations.
Back to top
What
is a household under HMO Terms?
- People
may be considered as part of the same household if they
are members of the same family (married or living together,
or related to one another, including half-relatives and
step-children). Foster children and adopted children will
be treated as part of the household and so will any domestic
employees including carers.
- The
Government are exempting properties with only two joint
tenants from the definition of an HMO. As a result to be
an HMO a property will have to have 3 or more joint unrelated
tenants. For example, a house with five individuals sharing
kitchen and bathroom facilities on a joint tenancy will
be considered to have five households occupying it. It is
worth noting, however, that if two of the five tenants are
married to each other or are blood relatives, then the property
will only be considered to have four households: the three
individuals plus one couple or set of relatives.
- People
are to be regarded as not forming a single household unless
they are all members of the same family.
- Whether
or not a group of people classify as a 'household' is also
a controversial point under the legislation. A family will
classify as a household, whereas a group of individuals
sharing a house will normally be considered as multiple
occupation. People may also be considered as part of the
same household if they are married, living together or even
just related to each other (including half relatives and
step-children). The Act allows and leads us to expect that
regulations will be introduced that prescribe other types
of relationship - such as domestic staff or fostering or
carer arrangements) that may be either included or excluded
within this definition of household.
- A
house shared by five individuals holding a joint tenancy,
and sharing kitchen and bathroom facilities will qualify
under the new definition as a house occupied by five households.
But if two of those individuals are related or in a relationship
and 'living together', then there will only be four households.
Back
to top
Part:Source
for above: National Landlords Association - NLA
New
legislation changes the definition of a House in Multiple
Occupation - England and Wales
From
the 6th April 2006 more properties will fall under this definition.
It is aimed at improving standards of student houses and bedsits.
Houses with three or more storeys let to five or more unrelated
people will need to be licensed by the Local Authority. This
is to ensure that the Landlord is a "fit and proper person".
Landlords who fail to get a license by the beginning of July
2006 risk a fine of £20,000 for contravening the latest
regulations in the 2004 Housing Act governing Houses in Multiple
Occupation.
Below
is a basic check list:
What
is a House in Multiple Occupation? -
It is a building which is occupied by two or more households
which share some facilities such as kitchens, bathrooms or
WC's.
What
is a household? - The new legislation
states specifically - It includes members of the same family
(parent, child, grandparent, brother, sister, aunt, nephew,
niece or cousin), persons who are married to each other or
live as husband and wife (or an equivalent same sex relationship).
What
if a group of students occupy a house? - This will be classed
as a House in Multiple Occupation as they would not members
of the same household. The legislation has made a specific
change to clarify this area. If a property is let through
a college/university College
Head Tenancy Scheme the property
is still an HMO if the persons are unrelated.**
Are
there any exemptions from the definition of HMO? - Yes
- these are for buildings managed by public sector bodies
such as Registered Social Landlords, the Police, the Fire
Authority and the National Health Service. **Student
Halls of Residence managed by an Educational Establishment
are also exempt from the definition.
What
are the legal requirements regarding HMOs? -
Some higher risk HMOs which consist of three or more storeys
with five or more occupants must be licensed by a Local Authority.
All HMOs will need to meet basic standards which at April
2006 have to be finalised by the Government. It is likely
that these will relate to the numbers of facilities required
such as kitchens, baths, showers and WC's and fire prevention
works. The standard of management in the property will also
be specified to ensure the property is managed properly and
maintained in a good state of repair.
Licenses:
To grant a license, the licensing
authority must be satisfied that:
- the
proposed license holder, the landlord or managing agent,
are 'fit and proper' people
- properties
and tenancies are managed appropriately
- the
accommodation meets all minimum standards such as sufficient
number of toilets, kitchens and bathrooms for the number
of residents
Licenses
will be issued with certain conditions attached, such as the
requirement to provide gas and electrical safety certificates.
 Left:
Property that has been an HMO for over 30 years
In
Wales There are some 20,000
HMOs. Local Authorities have significant enforcement powers
to deal with problems in the private rented sector and can
also give grants to improve the condition of properties and
for the conversion of HMOs into self-contained accommodation.
In
Scotland all residential let
property with three or more unrelated tenants has to be licensed
as an HMO whereas in England and Wales mandatory licensing
in most areas will be restricted to HMOs with three or more
storeys and five or more tenants.
Back
to top
To make matters
more complicated a new law - Anti-Social Behaviour
Act (Scotland) 2004 states that
from the 30th April 2006, all Landlords of any private rented
accommodation will need to apply to be registered with the
Local Authority in which they let. This means that all Landlords
letting out accommodation in Scotland will now have to be
licensed. The only exceptions will be when the Landlord lives
in the same property and holiday lets.
Landlords
with HMOs will already be licensed under existing HMO licensing
rules, but for everybody else it will be an offence to continue
letting residential property in Scotland if they have not
submitted a valid application to register on the new database.
You
can be fined up to £5,000 for non registration and the
stopping of rental payments. The objective is to remove more
disreputable Landlords from the market by checking that those
on the register are "fit and proper" people to let
out property. It also aims to ensure that Landlords cooperate
with councils to try to reduce tenants' antisocial behaviour.
The
Local Authority will run checks to see if the Landlord is
a "fit and proper" person. Checks for fraud, drugs,
dishonesty, violence and unlawful discrimination or failed
to maintain a property properly.
The
minimum registration fee is £55 and a further fee of
£13.75 for each additional Local Authority area where
the Landlord lets. There is also a £11 for each property.
If a Landlord has two properties in different Local Authority
areas will pay £90.75 but there will be a 10 per cent
discount for registering on line.
The
registrations will have to be renewed every three years.
N.B.
This information should not be relied on for accuracy and
is presented here without the responsibility of jml Property
Service and the website it is being displayed at. ©jml property
Services 03-06
Landlord
in Bexley fined for breach of HMO rules
Bexley
Magistrates Court, Greater London has fined Ludomir Szulc
£99,000. He pleaded guilty to 22 offences brought by
the London Borough of Bexley under the Management of Houses
in Multiple Occupation (England) Regulations 2006. These are
the rules that set out the duties of landlords and managers
of houses in multiple occupation under the 2004 Housing Act.
Environmental health officesrs found uncapped gas pipes in
bedrooms, dangerous electrics lacl of adequate fire precautions,
badly maintained and filthy bathrooms and kitchen and a lack
of hot water to kitchen and sinks.
The
original fine was £110,000 but reduced to £99,000
according tothe report in the NLA's magazine "Uk Landlord"
March
2009
Back
to top
See
also:
Housing
Act 2004 - Chapter
3 LICENSING OF HOUSES IN MULTIPLE OCCUPATION 4
Implementation
of the Regulatory Reform (Fire Safety) England & wales)
Order 2005
The
Regulatory Reform (Fire Safety) Order 2005 and HMOs - Information
17 April 2007
Click
Here
How
to present your rental property for letting
How
not to present your rental property for letting
Going
Smoke Free - England July 2007
Buy
to Let Uk
Buy
to Let Europe
Condensation
Problems
Energy
Performance Certificates for rental property
Tenancy
Deposit Protection Scheme
Property
News
Arbitration - April 2008 -
by David Smith - Pain Smith Legal update
Statutory
code of Practise on racial equality in housing
Back
to Property Information
Do
you own more than Two Rental Properties - Want to save money?
Click on Logo Below
Looking
for a Buy to let Mortgage?
________________________________
Looking
for a Landlords Mortgage ? Click on The Money Centre logo
below and get an immediate competitive quote on line.
______________________________________
Own
a Rental Property? Take a look at HomeLet 
Landlords Insurance
_____________________________________
Back
to top
 the
low cost villa advertising service
Advertise
your Holiday Home Property -
just £11.75 a year including VAT...
CLICK
HERE for
Details
jml
Property Services are members of the NLA - National Landlords
Association in the UK and BCC, Cote d'Azur - France
--- 
|
.jpg)
