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What is an HMO?

A House in Multiple Occupation (HMO) is defined as a property occupied by three or more tenants who are not part of the same household and share amenities like kitchens and bathrooms. This arrangement can include shared houses, bedsits, and some student accommodations.

Types of Living Arrangements Constituting an HMO

  • Shared Houses: Multiple unrelated individuals sharing common facilities.
  • Bedsits: Individual rooms with shared cooking and bathing facilities.
  • Purpose-built Student Accommodation: Properties designed for student use that meet HMO criteria.
  • Flats with Shared Amenities: Separate units where tenants share communal areas.

 

When is an HMO License Required?

A license is required under the Housing Act 2004 for:

  • Properties with five or more tenants forming two or more households, sharing amenities.
  • The whole building has self-contained and non-self-contained flats.
  • Where one or more of the storeys are in commercial use.
  • Some local councils may require licenses for smaller HMOs (usually three or more tenants).
  • Some areas with high demand have additional licensing schemes for certain types of HMOs, so landlords should check local regulations.

 

Maximum Occupants in an HMO

Under the Housing Act 1985, overcrowding is determined by space and room standards:

  • Room Size Standards: Rooms must meet minimum size requirements in order to meet the “Bedroom Standard” which essentially is the space required per person sleeping.
  • Overcrowding Hazards: The LACORS Regulation of Crowding and Spaces in Residential Premises outlines acceptable space for occupants to avoid health and safety risks, considering factors such as age, the sex of the occupants, their relationship with one another and the size of the private and shared rooms.

 

Housing Health and Safety Rating System (HHSRS)

The HHSRS is used to evaluate housing conditions, focusing on potential hazards that could affect tenants’ health. In HMOs, landlords must ensure:

  • Safety of Facilities: All shared amenities must be safe and in good repair.
  • Fire Safety Compliance: Adherence to fire safety regulations, including proper escape routes and fire detection systems.
  • General Health and Safety: Addressing any identified hazards that could harm tenants.

 

Landlords’ Responsibilities for HMOs

Landlords must comply with several regulations, including:

  1. Licensing: Obtain the appropriate license under the Housing Act 2004.
  2. Maintenance: Keep the property in good condition and ensure amenities are functional, sanitary and safe.
  3. Safety Compliance: Follow safety regulations for fire, gas, and electrical installations and ensure regular inspections. There must be sufficient sanitation and drainage, adequate ventilation and water and space heating.
  4. Addressing Hazards: Manage and rectify the 29 specific hazards identified by the HHSRS.
  5. Tenant Safety: Provide secure living conditions, including appropriate locking mechanisms.
  6. Information Provision: Ensure tenants understand their rights and responsibilities, including how to report issues.

 

The Housing (Management of Houses in Multiple Occupation) Regulations 2006 and the Licensing and Management of Houses in Multiple Occupation and Other Houses (Additional Provisions) Regulations 2007 further detail landlords’ obligations in managing HMOs, emphasizing the importance of tenant safety, maintenance standards, and proper management practices.

From a legal and regulatory standpoint, owning and renting out an HMO can be considered a business activity. Landlords who manage HMOs are typically seen as running a rental property business, which involves responsibilities such as ensuring the property meets safety standards, complying with regulations specific to HMOs, and managing tenant relationships.

Therefore, while HMOs are primarily residential properties, the activity of owning and managing them for rental purposes is often treated as a business due to the legal and financial considerations involved.

By understanding and complying with these regulations, landlords can create safe and secure living environments for tenants in HMOs while adhering to UK law.

 

If you have any further questions or need assistance please contact us and our legal experts will be able to assist you.

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