A house in multiple occupation (HMO), sometimes called a “house share” is a property rented out to at least three people (who are not from one household eg a family) but share facilities such as a bathroom or kitchen.
From 1st October 2018 the mandatory licence for HMO’s has changed, whereas you needed a mandatory licence if the property was let to five or more people who share facilities such as a bathroom or kitchen and was at least three storeys high, this new licence is required for five or more tenants regardless of how many storeys the property is.
The new guidance will also recommend that the minimum floor area of a letting room (bedroom) will be 6.51m² for a single adult and 10.22m² for two adults sharing.
The new rules will no doubt impact thousands of properties in the UK and landlords will be required to have the new licence in place before 1st October to enable them to lawfully rent out their property. Failure to do so will be considered a criminal offence. It’s important to remember that the licence is required for each property and must be applied for by the landlord or the property management firm.
If you don’t adhere to the new rules, this may also cause problems further down the line when it comes to funding as lenders will question if you are letting lawfully.
For full and up to date information on the new HMO regulation visit www.gov.uk/house-in-multiple-occupation-licence or www.landlordsguild.com.
