Homes of Multiple Occupancy
Home of Multiple Occupancy (HMO) is a legal term used to describe a house that is shared by three or more unrelated people, who all share facilities like the kitchen and bathroom.
The law gives a detailed list of criteria that a house needs to meet in order to be called a HMO. The following information gives a brief overview of the HMO definition. It also provides information on the types of HMO that must have a licence.
What is an HMO?
An HMO is defined as a building, or part of a building (for example a flat):
- where more than one household lives in and shares an amenity, such as a bathroom, toilet or cooking facilities, or
- that is a converted building where more than one household lives that doesn't entirely comprise self-contained flats (whether or not there is also a sharing or lack of amenities), or
- that comprises entirely of converted self-contained flats and the standard of conversion does not meet that required by the 1991 Building Regulation and more than one third of the flats are occupied under short tenancies, (known as Section 257 HMOs).
Why are larger HMOs being licensed?
HMOs are often linked to poorer physical standards than other private rented property. The people who live in HMOs are often vulnerable or disadvantaged. Because HMOs are the only housing option for many people, the government says they should be effectively regulated.
Do all HMOs have to be licensed?
Under the Act, there are three types of HMO licensing:
HMO Mandatory licensing. This is for properties that
- Have five or more people in more than one household, who
- Share amenities such as bathrooms, toilets and cooking facilities
Additional licensing – HMOs
A discretionary power we can apply to a particular type of HMO to, for example, include an existing registration scheme. We do not currently have any additional licensing schemes.
Selective licensing of other residential accommodation
In some areas, properties not subject to HMO licensing could be covered under a selective licensing scheme. This is where we can declare that certain areas - for example, where there is low demand for housing or issues with anti-social behaviour - might be appropriate for selective licensing. We have not implemented selective licensing.
The law relating to the mandatory licencing of HMOs changed on October 1, 2018.
Under previous legislation, a property is classed as a HMO if:
- there are three or more storeys in the property
- there are five or more unrelated persons in
- two or more single households
Since October 1, 2018, the three-storey condition was removed, and so all properties that have:
- five or more people, in
- two or more households,
- who live in the property as their sole or main residence
will need to be licensed by law, regardless of the number of storeys.
The new legislation also brings in minimum room (usable space) sizes. We will identify the number of people who can occupy the property in the licence:
- 6.51 square metres for an adult single bedroom
- 4.64 square metres for a child under 10
- 10.22 square metres for two people over 10
No room under 4.64 square metres can be used for sleeping accommodation.
Any area under 1.5m in height is excluded.
If you own a property that meets the new criteria, you need to apply for a licence. It is a criminal offence to rent out rooms in a mandatory licensable property if you have not applied for a licence.
If you are granted a licence but breach it, without reasonable excuse, by:
- knowingly permitting the HMO to be occupied by more persons or households than is authorised by the licence, or
- failing to comply with a condition of the licence, such as a prohibition against occupation as sleeping accommodation
you can be liable for an unlimited fine.
Additional licensing – HMOs
A discretionary power that councils can apply to a particular type of HMO, for example, to include an existing registration scheme.
Selective licensing – of other residential accommodation
In some areas of the country, properties not subject to HMO licensing could be covered under a selective licensing scheme. This is where we may declare that certain areas, for example where there is low demand for housing or issues with anti-social behaviour, may be appropriate to selective licensing. We have not implemented selective licensing.
How does licensing work?
Anyone who owns or manages a HMO that may be subject to licensing must apply to us for a licence.
We must grant a licence, if we are satisfied that:
- The proposed licence holder is a Fit and Proper Person
- The HMO is suitable for occupation for the number of persons allowed on the licence
- The proposed licence holder is the correct person to hold the licence
- The proposed management of the property is satisfactory, and
- The financial structures for the management are suitable
Fit and proper persons
We will carry out checks to make sure that the person applying for a licence is a 'Fit and Proper' person. The following will be taken into account when making the assessment:
- Any previous convictions relating to drugs, fraud, sexual offences or violence
- Whether the proposed licence holder has committed any offences relating to housing or tenant law
- Whether the proposed licence holder has been found guilty of any unlawful discrimination
- Whether the proposed licence holder has broken any pervious HMO code of practice.
If a person does not meet the conditions set and the landlord is not a Fit and Proper person, we may refuse to grant a licence.
Interim Management Orders (IMO)
If a landlord fails to bring a HMO up to the required standard, or fails to meet the Fit and Proper person criteria, we can take over the management of the property.
Under the Act, an Interim Management Order allows a local authority to manage the property for up to a year, until suitable management arrangements have been made. The owner keeps their rights as an owner.
If the IMO expires and no improvement has been made, then we can issue a Final Management Order (FMO). This can last up to five years and be renewed following this period.
Penalties for operating without a licence
It is an offence if the landlord or person in control of the property:
- fails to apply for a licence for a licensable property
- allows a property to be occupied by more than are permitted under the licence
A fine of up to £20,000 may be imposed. In addition, contravening any of the licence conditions can result in fines of up to £5,000.
Rent repayment orders
A tenant living in a property that should have been licensed, but was not, can apply to the residential Property Tribunal (RTP) to claim back any rent they have paid during the unlicensed period.
Temporary exemption from licensing
If a landlord or person in control of a property intends to stop operating it as a HMO, or reduce the number of occupants, and can give clear evidence of this, they can apply for a Temporary Exemption Notice. This lasts for a maximum of three months and ensures that a property in the process of being converted from a HMO no longer needs to be licensed. If this situation is not resolved, then a second Temporary Exemption can be granted.
Applying for a HMO licence
Landlords will have to pay a fee to cover the cost of the licence procedure. The fee is a standard charge of £541.13. Once a licence has been granted, it will normally last for five years, although it can be for a shorter period.
We are required by law to hold a public register of licensed HMOs. The full register can be viewed, by appointment, at our Market Hall Offices and a shortened version of the registered can be seen here.