The new mandatory licensing criteria regarding Houses in Multiple Occupation (HMO) comes into effect across all local authorities in England on 01 October 2018 and there is also new Selective Licensing affecting some, but not all local authorities.
There are three key changes across all local authorities:
1. New Mandatory Houses in Multiple Occupation Licensing Criteria. Any property occupied by five (or more people) forming two (or more) households who also share facilities such as the kitchen or bathroom, regardless of the number of storeys is now subject to the new HMO licensing criteria.
- E.g. the former HMO licence only applied to properties of three or more storeys and now the licence would apply to a family of four living with a friend in a bungalow.
- A household is either a single person or members of the same family who live together. A family includes people who are: Married or living together including people in the same sex relationships, relatives of half-relatives, for example; grandparents, aunts, uncles, siblings, step parents or step children.
2. National minimum room sizes for sleeping will be introduced:
- Minimum 4.64 square metres – one person under 10 years.
- Minimum 6.51 square metres – one person over 10 years.
- Minimum 10.22 square metres – two people over 10 years.
- Any room where the ceiling height is less than 1.5 metres cannot be used towards any minimum room size.
3. Waste/Refuse disposal in accordance with the relevant local authority scheme. Included in the new HMO Licensing criteria will be the requirement to comply with whatever the relevant local authority’s scheme is for the storage space provided for and / or the disposal of any domestic refuse. Please be assured the local authority cannot apply any commercial refuse collection charging as waste collection is a service routinely available to any residential property.
I have a flat above commercial premises and/or a flat in a converted building, am I subject to the new licensing?
The prescribed Description Order 2018 prescribes the types of buildings that will be subject to mandatory licensing and typically categories would include flats above commercial premises and flats in converted buildings. Such flats are only required to be licensed if they are not purpose built. The good news is if you own a flat in a purpose built block comprising three or more self contained flats, this will not be subject to the mandatory Licensing. (If your local authority has a Selective Licence Scheme in place, then you would have to apply for a licence)
Completing an application form:
If you are a landlord with more than one property, or a property in different local authorities, the application forms are available to download now, but to note: it is not standardised across all the authorities. We therefore recommend you download the relevant authority application form accordingly and complete an application form per individual property.
What if I have a local authority selective licence already?
Good news – this should mean that it is relatively straightforward to passport across into a new mandatory HMO licence.
What if I already have a mandatory licence under the current regulations?
If you have a licence for a property that is three storeys (or more) forming two (or more) households then you will not need to re-apply for a further licence until your current licence comes to an end, then you will need to re-apply. However, you will need to check your minimum room sizes and inform your local authority if you have rooms (used for sleeping) which are smaller than the minimum room sizes outlined above. Communal spaces cannot be used to replace a room if it falls below the minimum size.
What if I already have an additional licence?
The licence is subject to your local council’s discretion – if you are unsure please contact your local authority.
You will not be exposed to any of these penalties if you contact your local authority and access the licensing section of their website and start your application process. A number of local authorities have an interactive website where you can enter your address and postcode to check if you are in a selective licensing area. If you are not sure which local authority your property falls into, find out by visiting: www.gov.uk/find-local-council.
Our team are experienced in acquiring and managing HMO properties for students, young professionals and shared households. If you are interested in expanding your portfolio into one of these areas or want to discuss the specific requirements in more detail just get in touch.