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Government rules concerning what types of property need HMO licences are changing this autumn. Make sure you are not caught out.
The current rules cover properties that are three or more storeys high, have 5 or more people in more than 1 household and share amenities such as bathrooms, toilets and cooking facilities. Such properties known as ‘Houses in Multiple Occupation’, or HMO’s, are required by law to have a licence.
Licenses are issued by local councils who often attach conditions to the issue or renewal of licences.
New rules are scheduled to come into force on 1st October 2018. Mandatory HMO licences will be required for any property occupied by 5 or more people, where householders share bathrooms, toilets and cooking facilities, and which is a house or a flat.
Therefore, one and two storey houses and flats will soon be caught in the licence ‘net’ and there will be a number of mandatory conditions, applying irrespective of location, relating to minimum bedroom sizes and facilities for domestic waste disposal.
If you are a landlord and rent out a property that will require an HMO licence, it is imperative that you become familiar with the implementations at this stage and take pre-emptive steps to protect yourself. One way is to find out about the current licence application process and licensing conditions in the areas where you have properties. In York, for example, all licence holders must attend and pass a training course within 1 year of their licence being issued.
Operating an HMO without a licence is a criminal offence and you could be liable for a fine (up to £30,000) and ordered to repay 12 months’ rent. You may also be formally cautioned or prosecuted with the risk of an unlimited fine on conviction.
We advise many local landlords on regulatory and tenant-related issues and, in our experience, those landlords who are up-to-speed with current rules and on top of their paperwork are those least likely to experience stressful and sometimes costly difficulties.
Our articles are intended for general information purposes only and are not a substitute for professional advice tailored to your specific circumstances. We are always very happy to discuss any plans, issues or concerns you may have and to clarify how we might be able to help. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.
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