Houses in Multiple Occupation (HMOs)
HMOs can offer good quality affordable accommodation to people who cannot afford to buy their own homes and are not eligible for housing by the Council.
Under changes in the Housing Act 2004, a house in multiple occupation (HMO) is defined as:
- An entire house or flat which is let to 3 or more tenants who form 2 or more households and who share a kitchen, bathroom or toilet.
- A house which has been converted entirely into bedsits or other non-self-contained accommodation and which is let to 3 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 completely self contained (i.e. the flat does not have a kitchen, bathroom and toilet) and which is occupied by 3 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 used as domestic refuges.
HMO Licensing
Licensing was introduced by the government in April 2006 and is aimed at raising standards to make sure that residents in the rented property sector live in safe and healthy homes. Houses in multiple occupation (HMOs) in particular can be poorly managed and in poor physical condition.
Licensing will also ensure that landlords are managing their HMOs to the required standards. It replaces the Registration Scheme which has been operating in the borough.
Failure to obtain a licence could result in landlords being fined up to £20,000.
Under the national mandatory licensing scheme an HMO must 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.
So, 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?
A household is defined as:
- Couples married to each other or living together as husband and wife (or equivalent relationship in the case of people of the same sex)
- Relatives living together, including parents, grandparents, children (and step-children), grandchildren, brothers, sisters, uncles, aunts, nephews, nieces or cousins
- Half-relatives will be treated as full relatives. A foster child living with his foster parent is treated as living in the same household as his foster parent.
- Any domestic staff are also included in the household if they are living rent-free in the accommodation provided by the person they are working for.
Examples
- Three friends sharing together count as three households.
- If a couple are sharing with a third person, that would consist of two households.
- If a family rents a property, that is a single household. If that family had a live-in au pair to look after their children, that person would be included in their household.
Page updated: 24 Jan 2008