Landlords who have a house in multiple occupation (HMO) will soon have to conform to new rules
Mandatory licensing for HMO landlords aims to raise standards of accommodation in the private rented sector. HMOs provide essential affordable housing for many tenants who need it. HMO licensing is intended to ensure that all these properties enjoy a decent minimum standard of management.
Raising standards of management will benefit tenants and the wider community as well as landlords who already manage their properties well. Collectively, badly managed properties can drive down values in an area, which many landlords find frustrating.
Who do the new standards affect?
Landlords letting the largest HMOs, those on three or more storeys with five or more people in two or more households living in them, must apply for a mandatory licence. Some councils may choose to license landlords with smaller HMOs as well.
For the purposes of licensing a household comprises any tenants who are members of the same family8 living together including couples (whether married or not), relatives and half-relatives or step-relatives, adopted and fostered children. A group of friends sharing a house will not be a single household.
How do I get a licence?
You should contact your local authority for an application form. The local authority will grant a licence if it is satisfied that:
- The proposed licence holder and any manager of the property is a fit and proper person
- Proper management standards are being applied at the property
- The HMO is reasonably suitable, or can be made suitable, for occupation by the number of tenants allowed under the licence. To determine this the local authority will consider the number, type and quality of bathrooms, toilets and cooking facilities available for the occupants.
How much will it cost?
Each local authority will set its own fee level for licence applications. You should contact the local authority for the area where your properties are situated to find out the cost of licensing them. Licensing fees should reflect the actual costs of licensing a property, with a fee structure that is fair and transparent.