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If a property is to be let to multiple occupiers who are not a family unit, the local authorities may class it as an HMO. These types of property can be an excellent investment opportunity but also need to be regulated, licensed and inspected for the safety of the occupants. Below is a definition of what may be classed as an HMO but guidance should be taken from your local authority. For further guidance just ask a member of the Hawes & Co Lettings Team.
Houses in Multiple Occupation and Residential Property Licensing Reforms – 1 October 2018
With effect from the 01 October 2018, the definition of a mandatory licensable property is changing to 5 or more occupiers not all related. i.e. five students sharing a ground floor flat, will require mandatory licensing. The requirement for the property to be over three floors has been removed. Also introducing minimum room sizes for licensable HMO’s.
An HMO can be a building or part of a building if it is:
The HMO must be occupied by more than one household:
In all cases:
Under the Act, a household comprises:
Certain types of buildings will not be HMO’s for the purpose of the Act. They include:
Definition of an HMO requiring a Licence:
The act requires landlords of many Houses in Multiple Occupation (HMOs) to apply for licences. The HMOs that need to be licensed are those with: