New HMO Rules

New HMO Rules

On 23 February 2018 new HMO rules were agreed by parliament and will come into force on 1 October 2018. The new rules are covered by “The Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018”. Mandatory condition and licences will apply to all HMOs that fall under the stated criteria, further tightening up the market and minimising the number of unfit properties and rogue landlords.

From 1 October 2018, the new definition of an HMO for licensing purposes will be any property occupied by five or more people, forming two or more separate households. This is in contrast to the existing HMO definition which is a property occupied by 5 or more people, forming two or more separate households and comprises three or more storeys.

Implementing a minimum room size rule has been part of the discussion and more specific details on this are to be announced. Another issue under discussion relates to refuse disposal and storage facilities, with minimum numbers of bins and storage facilities for waste expected to be set out by government. At the moment the only change being introduced on 1 October 2018 is the removal of the number of storeys from the HMO licensing definition.

If you already have a licence for your HMO under the current “Licensing of Houses in Multiple Occupation (Prescribed Descriptions) (England) Order 2006” definition, your licence will continue to be valid until the licence expiration date. After the expiration you will need to apply for a new licence as usual.

If you currently rent an HMO which did not previously require licensing but will do after the new order comes into effect on 1 October 2018, you will be required to apply for a licence through your local council.

Landlords will also need to ensure their compliance with local council’s HMO licensing standards, which may involve making changes to the property to comply with minimum room sizes, amenity standards (kitchen facilities, number of bathrooms etc.).

New regulations are expected to bring an additional 177,000 HMOs under the mandatory licensing scheme in England. Where selective or additional schemes are already in place for landlords, which accounts for about 20,000 HMOs, the new scheme will replace existing licences.

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