New HMO licensing regulations come into effect on 1^st October 2018

On 23^rd February the government agreed to changes in HMO regulations which will come into force from October. The new regulations cover The Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 SI 2018/221 & The Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licenses) (England) Regulations 2018 SI 2018/616. You can find further information on www.gov.uk.

What are the new changes to HMO?

The main change relates to the definition of a HMO under the Housing Act 2004. The current definition of a HMO is a property:

• Occupied by five or more people, who form two or more separate households
• Comprising of three or more storeys
• In which tenants share bathroom, toilet or kitchen facilities

The only significant change in the order removes the number of storeys from the definition, to a property:

• Occupied by five or more people, who form two or more separate households

Do I have to apply for a HMO licence?

If you already have a HMO licence, then your licence will continue to be valid until the license expiration date. This is usually 5 years from date of issue. After the expiration you will need to apply for a new licence as usual. If you currently let a HMO which you did not require a licence for previously, but will do after the new order comes into effect in October, then you will have to apply for a licence through your local council. The exception is if the property is in a purpose-built block of flats comprising three or more units.

Minimum room sizes

You will also need to ensure you comply with your local council’s HMO licensing standards, you will have to make changes to your property to comply with minimum room sizes, amenity standards (kitchen facilities, number of bathrooms etc). For rooms let to a single adult, the usable floor space needs to exceed 6.51sqm, which increases to 10.22 sqm for rooms occupied by two adults. Rooms occupied by a child under 10 cannot be less than 4.64 sqm. Any room which is less than 4.64 sqm cannot be used as sleeping accommodation. HMO licences will also include a condition that states the maximum number of people who can occupy each specific room in a property to be used for sleeping purposes. If rooms fall below the prescribed standard, you will have to stop letting them. If you do not, you will be in breach of licence condition and could be liable for prosecution by your local authority or could receive a civil penalty under the new Housing and Planning Act 2016. In the event of a breach of conditions, where the licence holder has not knowingly permitted the breach, the local authority will give up to a maximum of 18 months to rectify the breach.

What are the implications of the new changes?

Whilst the upgrading of HMO standards can only be positive, the introduction of minimum room sizing risks reducing capacity and in turn could potentially lead to rent increases as landlords’ rental incomes are affected. HMO landlords particularly in the capital and other big cities could unwittingly fall foul of local authorities with the growing trend of young professionals sharing accommodation to afford the rents, often without their landlord’s permission. If you are a HMO landlord and the new legislation affects you and you wish to sell your property, contact Sharpes today. We cover all areas of the country, including Nelson, Burnley, Keighley and Halifax. Call 01274 731217 (Yorkshire) or 0161 3029782 (Lancashire/Greater Manchester) or click below for your free no obligation auction appraisal. Click here for your free no obligation auction appraisal