Houses in Multiple Occupation (HMO)
What is a House in Multiple Occupation?
A House in Multiple Occupation HMO (sometimes called a ‘house share’) is a property rented out by at least 3 people who are not from 1 household and who share basic amenities, such as the bathroom and kitchen.
Your property will be classed as a HMO, if:
- it’s rented to 3 or more people who form more than 1 household
- tenants share toilet, bathroom or kitchen facilities
Tenants classified as a Household
- Co-habiting couples
- Blood-related, or foster families
- Carers and domestic staff
Purpose built flats would not require a HMO licence, however buildings converted entirely into self-contained flats would be defined as HMO if they meet all of the following criteria:
- the conversion did not meet the 1991 Building Regulations
- more than one-third of the flats are let on short-term tenancies / less than two-thirds of the flats are owner occupied
- the building is occupied by more than 2 people
To check if your property requires a HMO licence, please contact the Team direct (contact details at bottom of page).
Why do some HMOs require licensing?
Larger HMOs, such as bedsits and shared houses, often have poorer physical and management standards than other privately rented properties. The people who live in HMOs are amongst the most vulnerable and disadvantaged members of society. As HMOs are the only housing option for many people, the Government recognises that it is vital that they are properly regulated.
Licensing is intended to make sure that:
- Landlords of HMOs are fit and proper people, or employ managers who are
- Each HMO is suitable for occupation by the number of people allowed under the licence
- The standard of management of the HMO is adequate
- High risk HMOs can be identified and targeted for improvement
Where landlords refuse to meet these criteria the council can intervene and manage the property so that:
- Vulnerable tenants can be protected
- HMOs are not overcrowded
- Councils can identify and support landlords, especially with regeneration and tackling antisocial behaviour
Do all HMOs have to be licensed?
No. Under the Housing Act 2004 there are three types of licensing:
MANDATORY (required by law) licensing of HMOs for properties that are:
- Three or more storeys high
- Have five or more people in more than one household, and
- Share amenities such as bathrooms, toilets and cooking facilities
ADDITIONAL licensing of HMOs
- A discretionary power that councils may decide to apply to a particular type of HMO, for example, to include in an existing registration scheme.
SELECTIVE licensing of other residential accommodation
- Properties that are not subject to HMO licensing could be covered under a selective licensing scheme. This is where the council may declare that certain areas, for example, where there is low demand for housing and/or antisocial behaviour, are appropriate for selective licensing. This licensing would cover all forms of private rented housing, including HMOs.
How does licensing work?
Anyone who owns or manages an 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
If the property does not currently have planning permission to operate as a House in Multiple Occupation you have a legal requirement to apply for planning permission if any of the below points apply:
- If the property use is changing from a single household to a HMO and it will be occupied by between 3-6 individuals (even if it has operated as a HMO in the past)
- If the property will be occupied by 7 or more persons
Planning consent operates independently from HMO licensing. Obtaining Planning Consent to operate a HMO does not guarantee a HMO licence will be granted and the granting of a HMO licence does not provide any certainty that Planning Consent will be given.
For further information or advice in respect of this requirement, please contact Planning Enforcement on :
- Telephone: 01495 762200
- Email: firstname.lastname@example.org
Any applicant who is refused a licence or wishes to appeal against conditions attached to their licence, can appeal to the Residential Property Tribunal (RPT) Wales. However, please contact us in the first instance.
Fines and penalties
You can be fined up to £20,000 for renting out an unlicensed HMO.
Last Modified: 12/05/2023
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