A House of Multiple Occupancy (HMO) is a living arrangement where three or more individuals who are not from the same household share a living space. While HMOs can provide affordable housing options for tenants, they are subject to specific regulations and standards to ensure the safety and well-being of the occupants. Landlords who operate HMOs are responsible for meeting these standards and obtaining the necessary HMO licences from local councils. In this article, we will define HMO, households, HMO licencing, HMO management, HMO standards, and HMO planning permission, to provide a comprehensive guide to anyone considering buying or managing an HMO property.

Define HMO

A House of Multiple Occupancy (HMO) is a housing arrangement where three or more people who are not from the same household share a living space. Each tenant has their own separate unit within the property, such as a bedroom, but they share common areas including kitchens, bathrooms, and living spaces.

In the UK, HMOs are subject to specific HMO management regulations and HMO standards that aim to ensure the safety and well-being of the tenants. This includes requirements for fire safety, the provision of suitable amenities, and measures to prevent overcrowding. Landlords who operate HMOs are responsible for meeting these standards and ensuring that the property is maintained in a safe and habitable condition.

One of the key requirements for HMOs is licencing. A licence is a legal document that confirms that the HMO meets certain standards and is safe for tenants to live in. The licensing process for HMOs is managed by local councils. The definition of an HMO under this legislation includes properties that are occupied by three or more people who form more than one household and who share facilities such as kitchens or bathrooms.

Define Household

A household consists of individuals who reside together and share living spaces and expenses, typically made up of family members. As this pertains to HMOs a household refers to a group of individuals who live together as a single unit. This is because the number of households in a property is a crucial factor in determining whether a property requires a HMO licence.

For example, a single family, no matter how many people are in the family, are classed as one household. A married couple are also classed as a single household. Three friends in a houseshare is classed as 3 households. Read more about Households in our House of Multiple Occupancy article.

Define HMO Licencing

HMO (House in Multiple Occupation) licencing refers to the process of obtaining a licence from a local authority to rent out a property as a shared house or flat. HMO licencing ensures that the property meets certain safety, health and welfare standards, as well as providing protection for tenants.

There are three different types of HMO licences, they are:

• Mandatory HMO Licencing: This type of licensing is required for all HMOs that are occupied by five or more people who form two or more households.
• Additional Licensing: This type of licensing is discretionary and can be introduced by local authorities in areas where there are a high number of HMOs, and where there is a need for improved management and standards.
• Selective Licensing: This type of licensing can be introduced by local authorities to target specific areas, types of properties, or practices, where there are particular problems such as low housing demand, anti-social behaviour or poor conditions. This licensing may apply to all privately rented properties in the designated area, not just HMOs.

Read this article to learn more about HMO Licence Requirements.

Define HMO Management

HMO management regulations in the UK are legal requirements that HMO landlords or HMO managers must follow when renting out a property to three or more tenants who are not from the same household. The regulations cover a wide range of areas, including fire safety, sanitation, waste disposal, room sizes, and heating. Failure to comply can lead to fines, legal action, and damage to the landlord’s reputation. By prioritising these obligations, HMO landlords or HMO managers can protect the health and safety of their tenants, contribute to a better community, and increase their potential rental income. Read more about HMO Management Rules.

Define HMO Standards

HMO standards are a set of guidelines for landlords to provide safe and healthy living conditions for tenants in HMOs. The standards cover areas such as minimum room sizes, fire safety, kitchen and bathroom facilities, heating and ventilation. To enforce these standards, local councils issue licences and conduct periodic inspections. Compliance with the standards can help landlords attract and retain tenants, and prevent legal consequences. Read more about HMO Standards.

Define HMO Planning Permission

Changing a property from a family house to a House of Multiple Occupancy (HMO) often falls under permitted development rights for HMOs with 6 or fewer occupants. This is unless the property is in a protected area or has lost its rights. It may have lost its rights if it is in an Article 4 area. Landlords must check with local authorities if Article 4 of the Town and Country Planning Order restricts their property’s development rights before converting it into a HMO. Read more about HMO Planning Permission.

Conclusion

It is essential to define HMO and its related subjects to ensure that HMO properties are managed effectively and safely if you are considering buying or managing a HMO. This includes having a clear understanding of the definition of HMO and knowledge of HMO licencing, HMO management regulations, HMO standards, and HMO planning permission. By understanding these requirements, HMO landlords can ensure that their properties meet safety and welfare standards, attract and retain tenants, and prevent legal consequences.

Looking for expert HMO management and HMO lettings for your South London property? Or require any HMO advice or consultation? Contact us today.