Houses in Multiple Occupation (HMOs)

What is a HMO?

The definition of a House in Multiple Occupation (HMO) has changed under the Housing Act 2004. Generally speaking, residential property will be a HMO if three or more unrelated people are sharing it.

In summary, a building is a HMO if:

• it is occupied by more than one household and where more than one household shares or lacks an amenity, such as a bathroom, toilet or cooking facilities, or
• it is occupied by more than one household and is a converted building but not entirely self-contained flats (whether or not some amenities are shared or lacking), or
• it is converted self-contained flats, but does not meet the requirements of 1991 Building Regulation, and at least one third of the flats are privately rented, or
• a HMO declaration has been made by the Local Authority under Section 255 of the Housing Act 2004

The following exemptions are made to the HMO definition:

• buildings, or parts of buildings, occupied by no more than two households each of which comprise a single person (e.g. two person flat shares)
• buildings occupied by a resident landlord with up to 2 tenants
• buildings managed or owned by a public body (such as the police or the NHS or an LHA or a Registered Social Landlord
• where the residential accommodation is ancillary to the principal use of the building e.g. religious establishments, conference centres etc.
• student halls of residence, where the education establishment has signed up to an Approved Code of Practice
• buildings regulated otherwise than under the Act, such as care homes, bail hostels etc., and the description of which are specified in regulations
• buildings entirely occupied by freeholders or long leaseholders

The term "household" means either a single person or members of the same family who are living together. This includes people who are married or living together as married (including those in same-sex relationships). "Family" means specific relatives i.e. parents, grand parents, children (and step-children), grandchildren, brothers, sisters, uncles, aunts, nephews, nieces or cousins. Foster children are also treated as part of their parents' household.

The change in definition particularly impacts on smaller shared houses, including those occupied by students, which now fall into the HMO definition.

Do I need a HMO Licence?

The Housing Act 2004 brought licensing in for certain categories of HMO. If the above definition determines a property within Herefordshire to be a HMO, it is almost certain that the landlord or their agent will need a licence. There are two ways in which licensing may apply to a HMO:

1. HMOs that fall within a Mandatory Licensing Scheme

Herefordshire Council has a duty to operate Mandatory Licensing for HMOs comprising of three or more story's and occupied by five or more persons.

2. HMOs subject to Herefordshire's Additional Licensing Scheme

From 6th April 2006 an additional HMO licensing scheme applies to all HMOs in Herefordshire that are not subject to the Mandatory Licensing scheme and are not self-contained flats that comply with Building Regulations 1991 standards (known as Section 257 HMOs).

What about the old Herefordshire HMO Registration Scheme?

All old Herefordshire HMO Registrations which expired after 6th July 2006 have been passported over to the new HMO Licensing scheme. Landlords who believe they should have received information regarding passporting from the old registration scheme but have not received a new licence should contact us as soon as possible to apply for a new HMO licence.

How do I get a HMO Licence?

You can contact the Private Sector Housing team on (01432) 260276 or e-mail psh@herefordshire.gov.uk who will be able to send you a HMO Licence application pack.

Landlords will have to pay a fee to cover the administration costs of the licence procedure. The cost of licensing in Herefordshire has initially been set at £60 per unit of living accommodation. A "unit" is the living accommodation occupied by one household as defined above i.e. single persons, couples and families.

Will there be any conditions on the licence?

Anyone who owns or manages a HMO that must be licensed has to apply to the Council for a licence. The Council must give a licence if it is satisfied that:

• the HMO is reasonably suitable for occupation by the number of people allowed under the licence
• the proposed licence holder is a fit and proper person
• the proposed licence holder is the most appropriate person to hold the licence
• the proposed manager, if there is one, is a "fit and proper person"
• the proposed management arrangements are satisfactory
• the person involved in the management of the HMO is competent
• the financial structures for the management are suitable

A HMO licence will only be valid for one property at a time and for a period of 5 years. If you have more that one property an additional licence will be required.

What happens if I don't licence my HMO?

In common with many other local authorities, applications have failed to reach our original estimates. Landlords should be aware that we are able to determine which houses are likely to require licensing from the information we already possess.

Landlords who have failed to apply for a licence will be at risk of:

• Prosecutions with fines up to £20,000 (one landlord in Liverpool had a £20,000 fine recently)
• Losing rent through possible rent repayment orders (One landlord was fined and had to pay half his rent money back to the tenants).
• Problems getting possession of properties due to the non-availability of Section 21 notices under the Housing Act 1988.

Our preference is always to work with landlords and to offer help and encouragement whenever we can. We appreciate the efforts and interest of landlords who have already submitted their applications. We would encourage landlords who need licensing for their houses but have so far not applied, to do so now. If we have to search landlords out, the cost of the licence may have to increase further and the likelihood of prosecution will be that much greater, especially for landlords who do not declare their full portfolio of licensable properties.

What standards do I need to maintain in a HMO?

The fire and amenity standards in Herefordshire are currently under review. New legal minimum HMO standards (Statutory Instruments 373, 2006 and Statutory Instrument 1903 2007) will form the basis for revision of the old amenity standards.

The Housing Act 2004 allowed for new Management Regulations. There are two new sets of management relations, the first applying to most HMOs are detailed in Statutory Instruments No. 372, 2006 and for those for Section 257 HMOs (blocks of self-contained flats that fall within the HMO definition) are contained in Statutory Instrument 1903, 2007. These came into force on 6th April 2006 and 1st October 2007 respectively.

The Management Regulations impose duties on both the managers and the tenants of a HMO. The duties imposed are to ensure the good order, repair and, as appropriate, cleanliness of the following:

• Means of water supply and drainage
• Parts of the house in common use
• Installations in common use
• Living accommodation
• Windows and ventilation
• Means of escape from fire, including any fire apparatus

The Manager is also given certain responsibilities as respects the disposal of refuse and litter, and the taking of reasonable precautions to protect tenants and lodgers from dangers resulting from structural conditions in the property.

What about Hazards in a HMO?

The Council can issue a licence without inspecting the property. However, we are also required to satisfy ourselves as soon as is reasonably practicable after an application for a licence is made that the HMO is free from any serious hazards under the Housing, Health and Safety Rating System (HHSRS). All HMOs have to be assessed to ensure there are no serious hazards within 5 years from the licence application. In effect this means that the Council will be carrying out at least one inspection at some point during the lifetime of the licence. Further information on the HHSRS under the Housing Act 2004 can be found at the Communities and Local Government website: http://www.communities.gov.uk/housing/decenthomes/housingstandards/housinghealth/

In summary:

• Assume that most, if not all HMOs in Herefordshire are licensable under the Housing Act 2004.
• Contact the HMO team at Private Sector Housing on (01432) 260645 for further information and an application pack or email psh@herefordshire.gov.uk

Last Updated: 29 July 08,
Review Date: 20 September 2005