Do small HMOs need a licence?

Asked by: Pearl Hegmann  |  Last update: February 11, 2022
Score: 4.7/5 (38 votes)

HMO licensing
You require a licence for a HMO when all of the following apply: There are five or more occupants living in the property. Two or more separate households live in the property.

Does a 3 bed HMO need a licence?

Do I need to get an HMO licence? Since the rule changes made in October 1 2018, all HMOs must have a licence. You must apply for a licence if 3 or more unrelated people occupy at least two different households.

Who is exempt from HMO licence?

Properties exempt from HMO licensing

a property occupied by two people living as two households (two-person flat shares) buildings managed or controlled by public sector bodies (such as the police or the NHS), the London Hostels Association or a registered social landlord.

Do I need a HMO licence for 4 rooms?

HMO Licensing

If your property is let to five or more tenants from more than one household, some or all of the tenants share toilet, bathroom or kitchen facilities and at least one tenant pays rent, then your property will be considered as a large HMO and will need a licence.

What is unlicensed HMO?

An unlicensed HMO is an HMO that meets the minimum criteria, but does not meet the mandatory licensing criteria and selective licensing is not enforced. An unlicensed HMO is still an HMO, and the additional responsibilities must be followed.

HMO Rules, Regulations and Legislation!

18 related questions found

How much does a HMO licence cost?

The standard HMO licence fee is £1,100,split into two payments. For larger HMOs with more than ten units of accommodation the fee is increased by an extra £50 for each additional unit of accommodation in excess of ten. NB For very large HMOs there is a maximum fee of £6,000.

Do HMO need planning permission?

The quick answer is: no, often you don't need planning permission to convert a property to an HMO.

Can I live in my own HMO?

It's a common misconception that the HMO regulations only apply to flatshares where the landlord doesn't live in the property – it's perfectly possible to have an HMO as a live in landlord too.

Is a 2 bed flat a HMO?

Since the Housing Act of 2004, all HMO's (Houses of Multiple Occupation) have fallen under the regulations of the act. The regulations cover any investment property where two or more unrelated people share – so even if you have a 2-bed flat and you have 2 unrelated people sharing it; its technically a HMO.

How many tenants make a HMO?

Your home is a house in multiple occupation ( HMO ) if both of the following apply: at least 3 tenants live there, forming more than 1 household. you share toilet, bathroom or kitchen facilities with other tenants.

What are the requirements for HMO?

Your home is probably an HMO if:
  • 3 or more unrelated people live there as at least 2 separate households – for example, 3 single people with their own rooms, or 2 couples each sharing a room.
  • the 3 or more people living there share basic amenities, such as a kitchen or bathroom.

Is a block of flats an HMO?

Is a block of flats a HMO? A purpose built block of flats is not a HMO. However, an individual flat within it might be if it is let to tenants who share amenities (at least one of whom is unrelated).

What is the difference between HMO and selective licensing?

Selective licensing does not specifically relate to HMOs. Schemes may be introduced in areas of low demand housing or areas with significant anti-social behaviour problems. ... All privately rented properties within a selective licensing area have to be licensed, regardless of whether or not the property is an HMO.

Do HMOs need fire doors?

HMO Fire Door Regulations

Fire doors are an essential feature of HMO fire safety regulations. The rule is that, as a landlord, you need to make sure that all escape routes from the property are protected.

Can you object to a HMO?

Although all timeous representations must be considered before an HMO licence application is determined, those which do not contain relevant licensing grounds of objection and instead contain planning grounds require to be disregarded.

Who is responsible for HMO licence?

It's your responsibility as the landlord or managing agent to apply for an HMO licence. It is an offence to operate a HMO without having obtained a licence.

Can 3 friends rent a house together?

And, as you have found, most lenders won't allow multiple tenancies where each tenant signs a separate agreement. ... That doesn't mean that you can't let the house to three different people, but it does mean that they should all be named as joint tenants on one tenancy agreement.

Do I need a HMO licence if I live in the property?

You will need a mandatory HMO licence if your property meets the standard test, self-contained flat test or converted building test HMO definition (section 254 of the Housing Act 2004) and is occupied by five or more people. ... Properties converted into a mixture of self-contained and non self-contained accommodation.

How long does it take to get a HMO licence?

We aim to process applications within 3 months of receipt of a valid application. If there are any delays, you can view the progress of the application by logging into your licensing portal account.

How many people can live in a 3 bedroom house?

According to the Federal Occupancy Standards set by Housing and Urban Development, seven people can live in a three-bedroom house that also has a separate living room. The number may be smaller than that if the people are unrelated. HUD guidelines also state that each person should have 165 square feet in a home.

What is the 4 year rule in planning permission?

The '4 Year Rule' allows you to make a formal application for a certificate to determine whether your unauthorised use or development can become lawful through the passage of time — rather than compliance with space standards — and can continue without the need for planning permission.

Do HMOs need fire extinguishers?

In HMOs and buildings containing flats, simple multi-purpose extinguishers are required on each floor in the common parts. It will not usually be practical to train tenants in the use of these, but basic advice should be offered at the start of each new tenancy.

What is an Article 4 area?

Article 4 directions are used to control works that could threaten the character of an area of acknowledged importance, such as a conservation area. Article 4 directions can increase the public protection of designated and non-designated heritage assets and their settings.

Are HMO good investment?

As a landlord or property investor, the chances are that you know HMOs can make for great investments. Not only do they offer the highest rental yields on the market, but demand for affordable housing has never been higher, meaning you'll have no trouble filling your rooms.

Are HMOs profitable?

Why choose HMO rather than a buy-to-let property? When compared to standard buy to let rental properties, on an HMO you should expect a minimum of 12% gross yield, and on average a likely 15% realistic gross yield. That is why an HMO investment can give you a life of luxury in retirement.