Update on HMO government rules is set to draw thousands of more buy-to-let landlords into the HMO licensing net and failure to comply could see them subjected to unlimited fines.
In early March, the Government introduced the Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 (2018/221) (LHMO 2018), which comes into effect from October 1, 2018.
HMOs are defined by the Government as “a property rented out by at least 3 people who are not from 1 ‘household’ (eg a family) but share facilities like the bathroom and kitchen. It’s sometimes called a ‘house share’.”
The Residential Landlords Association recently predicted that as many as an additional 177,000 homes could be subject to HMO licensing and 16% of landlords currently rent to people in HMOs.
The new rules
Under the new rules, licensing will apply to HMOs occupied by five or more people, irrespective of the number of storeys. Also, HMO licensing will apply to purpose-built flats where there are up to two flats in the block.
A licence is valid for five years and a separate licence must apply to each HMO property.
There will be transitional provisions for HMOs that are already licensed under the selective licensing provisions, which will last for six months, but which will be subject to mandatory licensing from 1 October 2018.
Licence requirements
In order to operate a licenced HMO, landlords must comply with a number of standards:
- the house must be suitable for the number of occupants;
- whoever manages the property – whether that is the landlord or an agent, must be considered ‘fit and proper’ and must have no criminal record or history of breaching landlord laws of code of practice;
- the local council must be sent an updated gas safety certificate annually;
- the landlord must install and maintain smoke alarms;
- the landlord must provide safety certificates for all electrical appliances within the property when requested.