In the UK, if you’re a landlord managing a House in Multiple Occupation (HMO), understanding what needs to be included in an HMO licence is crucial for legal compliance. An HMO licence isn’t just a formality; it’s a fundamental step in ensuring tenant safety, managing property standards, and avoiding legal repercussions. This guide explains everything UK landlords need to know to secure an HMO licence and maintain compliance.

What is an HMO?

A House in Multiple Occupation (HMO) is a property rented out by at least three people who are not from the same household but share facilities like the kitchen or bathroom. If your property meets specific criteria, it may legally require an HMO licence.

In general, the UK considers an HMO as:

• A property rented to five or more people.
• Tenants forming more than one household.
• Shared facilities, such as a bathroom, toilet, or kitchen.

Failing to meet licensing requirements can lead to penalties, including fines of up to £30,000 or even imprisonment.

When Do You Need an HMO Licence?

Under UK law, most HMOs with five or more occupants from multiple households need an HMO licence. However, some local councils require smaller HMOs to be licensed as well, so it’s essential to check your local council’s regulations.

What Has to Be Included in an HMO Licence?

Getting an HMO licence involves meeting several mandatory requirements to ensure both the landlord’s and tenants’ safety. Here’s a detailed breakdown of what should be included:

1. Property Management Details

• Name and Contact Information of the Licence Holder: The licence must state the licence holder’s name, address, and contact information.
• Property Manager Information: If someone other than the licence holder manages the property, their details should be included.
• Property Address: Clearly specify the address of the property in question.

2. Maximum Number of Occupants and Households

• Occupancy Limit: Every HMO licence specifies the maximum number of people permitted to live in the property. This limit ensures that the property is not overcrowded.
• Households Definition: The licence must outline the permitted number of households to avoid excessive crowding, which could lead to health and safety risks.

3. Safety Standards Compliance

• Fire Safety: You must install fire alarms and extinguishers throughout the property. Local regulations often demand fire-resistant doors, smoke detectors, and clearly marked escape routes.
• Gas and Electrical Safety: Annual gas safety checks are required, along with an Electrical Installation Condition Report (EICR) at least every five years.
• Furniture and Furnishings: Ensure all provided furniture and furnishings meet fire safety standards.

4. Space and Facility Requirements

• Room Size Standards: HMOs must comply with minimum room sizes for sleeping accommodation. Generally, a single room should be at least 6.51 square metres, and a room for two occupants should be a minimum of 10.22 square metres.
• Bathroom, Kitchen, and Toilet Facilities: Sufficient and appropriate shared facilities are essential. Each tenant must have reasonable access to toilets, bathrooms, and kitchens. The number and type of facilities should align with the number of occupants.

5. Proof of Financial Suitability

• Licence Holder’s Financial Standing: Some councils may require evidence that the landlord or licence holder has the financial capability to manage the property responsibly.

6. Good Management Practices

• Tenant Management and Anti-Social Behaviour: HMO licences often stipulate that landlords are responsible for handling tenant issues, including anti-social behaviour. Documented procedures for addressing tenant complaints can be beneficial.
• Refuse and Waste Management: Proper waste disposal arrangements are crucial in an HMO setting. Landlords should ensure there are adequate bins and regular waste collection for the property.

7. Fit and Proper Person Requirement

Landlord’s Character Check: To hold an HMO licence, the landlord or property manager must meet the “fit and proper person” criteria. This involves checks on criminal history and any previous issues with property management. Local councils may ask for a declaration confirming this status.

How to Apply for an HMO Licence

1. Contact Your Local Council: Each council has a specific application process for HMO licences. Start by visiting your council’s website to understand their requirements.
2. Complete the Application Form: Provide all necessary information, including the details mentioned above. Be prepared with supporting documents, such as fire safety certificates, gas safety records, and proof of financial standing if required.
3. Inspection: After submission, the council will inspect your property to verify its suitability as an HMO and assess whether it meets safety standards.
4. Licence Duration and Renewal: HMO licences typically last for five years, after which they must be renewed. Regular property inspections ensure compliance throughout the licence period.

The Bottom Line

Securing an HMO licence in the UK involves thorough documentation, compliance with health and safety standards, and the ability to manage tenants responsibly. For landlords, adhering to these guidelines helps avoid costly penalties and ensures a safe, habitable environment for tenants.

Staying informed about changing regulations and maintaining proactive communication with your local council are key steps in responsible HMO management. A well-maintained HMO is more likely to attract long-term tenants and yields better returns in the long run.

Further Reading