Houses in multiple occupation

What is a house in multiple occupation (HMO)?

A house in multiple occupation is a house occupied by people who do not live as a single household. This can include bedsits, shared houses, hostels, non-self contained flats and houses converted into flats. Hotels, guest houses and bed and breakfast establishments used to accommodate homeless people or asylum seekers are also HMOs.

Houses or buildings occupied by only one household are not HMOs.

Licensing of Houses in Multiple Occupation (HMOs)

Larger, higher-risk HMOs are now required to be licensed.

This will include HMOs which comprise three storeys or more and are occupied by five or more persons.

Converted blocks of flats that fall within the definition of HMO will not be subject to mandatory licensing. In calculating three storeys, attic or basement accommodation used, or capable of being used, for residential purposes will be included

Properties subject to existing registration schemes, which will include some self contained flats, will also be required to be licensed.

In order to be licensed the local authority must be satisfied that the house meets a prescribed amenity standard, is managed by a fit and proper person and that there are suitable management arrangements in place.

A fee of £539 will be charged for licensing of properties containing up to 8 people. An additional fee will be charged for each additional occupant above 8. The fee will not apply to those properties which are passported from the registration scheme.

The local authority will be under a duty to take over the management of any properties which cannot be licensed either because of their condition or because the manager is not a fit and proper person by making firstly an Interim and then a Final Management Order. The Final Management Order can last for a period of up to 5 years. The owner of the property has a right to appeal to a Residential Property Tribunal against the decision of the council to make a Management Order.

The effect of the Management Order is to allow the local authority to step into the shoes of the manager to bring the property up to standard. The local authority must keep accounts for the property and pay back to the owner any excess of income over expenditure. Equally, where the rent payments do not meet the cost of works needed to maintain the property then the difference can be reclaimed from the owner.

Any landlord who believes that his property may be subject to licensing should download a preliminary enquiry form and send it in to the council who will assess whether the property is licensable and get back to them.