HMO Rules Being Extended

Published / Last Updated on 25/05/2018

For many property investors, you will already be aware of normal landlord rules and tenant safety for:

  • Gas and electricity safety tests
  • Tenant agreements
  • Tenant reference fees
  • Tenant deposit schemes

Some will also be aware of HMO licensing rules for Houses of Multiple Occupancy but are you aware that HMO Licensing rules change on 01/10/2018?

What is a HMO?

House of multiple occupation are properties where multiple people live in from different families, each having say their own bedroom but then with shared washing, cooking, dining and lounge facilities.  A classic image of a HMO for you is a student house.

Already new rules are in place for minimum bedroom sizes, energy performance certificate ratings etc but are you aware that HMO licensing is now being extended to properties with 5 or more occupants from just two or more families?

That’s right, you could own a large house, renting out say to two families and instantly, if there are children, it can easily be over 5 people and from October be classed as a HMO. 

Comment

This could mean nearly 200,000 additional rented properties needing to be renovated to comply with HMO Licensing.  If you are a landlord, can you afford it?  If you are thinking of buying investment property, be careful what you buy.  Read more about the new HMO rules: https://nlceuk.co.uk/2018/02/24/new-criteria-for-mandatory-hmo-licensing/

You need to ‘get into gear’ now!  Local authorities will be inundated with HMO licence applications.  Get works completed, apply early, avoid the rush.  You do not want or need an empty property.

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