Living with HMOs

Most landlords should by now be aware of the plans for licensing some types of HMOs (Houses in Multiple Occupation) under the Housing Act 2004 mandatory licensing schemes run by the local authorities. Generally, and as a very simplified definition, if you have a building on 3 or more storeys with 5 or more occupiers from 2 or more households, licensing is something about which you should seek advice. However, what about other properties?

The new definition of an HMO basically covers any situation where occupiers of a property share a basic amenity between families (bed-sits and shared housing). It is also an HMO if the property lacks a basic amenity, or the occupier has to come outside their own front door to get to the basic amenity, even if it is for their exclusive use. This last situation happens in some conversions where a structural problem prevents the developer providing access into part of the property, say the bathroom, without going out into the common hallway. A basic amenity is simply defined as a kitchen, bathroom or toilet.

One category of HMO, often referred to as Section 257 HMOs after the section in the Housing Act 2004 which defines them, is converted self contained flats not compliant with the 1991 Building Regulations. These are treated differently from other HMO types and what is mentioned here may not apply to this type of HMO (for example, mandatory licensing does not apply to section 257 HMOs).

Many properties will fall into the description of an HMO but will remain outside licensing. For example, two single unrelated ladies, one with a child, sharing a two bed roomed flat. Therefore, the flat will become an HMO. A house with 6 students sharing on two floors would not fall into mandatory licensing, but may be caught as an HMO none the less. There are lots, in fact there will probably be far more HMOs which don’t need licensing than there will be HMOs which do need licensing.

At the discretion of the Local Authority they may choose to run “Additional” licensing and license other HMOs (including Section 257 HMOs). However, even if Additional licensing is not being run, there are still additional rules that apply for any property which is an HMO regardless of the age and size or the number of occupiers.

Principally of interest are the new management of HMO regulations that apply to all non Section 257 HMOs. These place specific requirements on the manager of the property, which may be the landlord, if self managing, or a professional agent, if one is retained to assist the landlord.

The following is a brief description of some of the requirements of these regulations.

Regulation 3 requires that the name and contact details of the person managing the property are made available to each household and displayed in a “common part”. For a two bed roomed flat with the landlord and agent just responsible for one flat in the block, this will effectively require the name and contact details to be displayed in the hallway of that flat, or somewhere similar if the flat is let in such a way that is qualifies as an HMO.

Regulation 5 requires that managers of HMOs ensure water tanks and cisterns are covered and the pipe work is protected from freezing.

Regulation 6 requires that the mains electrical installation is inspected every 5 years and that copies of this inspection and the gas safety record are available to the local authority.

Regulation 7 requires that the “common parts”, and appliances used in them, are kept clean and in good working order. Of some significance is the definition in regulation 7(6)(a) where a common part is defined as any part used by more than one household and could include the kitchen in a shared flat or house as well as the garden. Indeed regulation 7(4) requires keeping yard and gardens safe and tidy.

Regulation 9 deals with providing adequate refuse collection.

In general many of the regulations make a lot of sense for larger HMOs where you have a house full of bedsits. However, their application to small HMOs does seem a bit silly. It is probably to be expected that HMO management will become a more specialised occupation.

The Management of Houses in Multiple Occupation (England) Regulations 2006, SI 2006 372.

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