However, HMOs are often misunderstood, and it’s important to know what they are and what they are not.

What an HMO Is:

• A property that houses multiple tenants who share common facilities
• A cost-effective option for renters who do not want to rent an entire property
• A type of property that requires an HMO licence from the local council in order to legally operate
• A property that must meet certain standards, such as fire safety, ventilation, and sanitation, set by the local council

What an HMO Is Not:

• A single-family home where the owner lives in one part of the building and rents out the other part
• A property that does not have to meet minimum standards set by the local council

Examples of HMOs include:

• Student dormitories
• Shared houses for young professionals
• Buildings converted into flats where tenants share common facilities

Read more about the HMO definition and the benefits of living in an HMO.

The following properties are HMOs, and they require a Mandatory HMO Licence:

• A 5 bed house rented to 5 unrelated friends on one tenancy agreement
• A 4 bed house that is available to rent as a holiday let and houses people from 8 or more unrelated people
• A 6 bed house rented to 6 students on one tenancy agreement
• A 7 bed house rented to 7 friends on one tenancy agreement

The following properties are HMOs, but do not require a Mandatory HMO Licence:

• A 3 bed house rented to 2 friends on one tenancy agreement
• A 4 bed flat rented to a family and a lodger on separate tenancy agreements
• A 2 bed house rented to a single family
• A 4 bed purpose built flat rented to 4 unrelated friends on different tenancy agreements
• A 2 bed flat shared by a couple and another individual
• A 3 bed flat rented to 3 colleagues on different tenancy agreements

Read more about HMO requirements and licencing.

The following properties are not HMOs:

• A 3 bed flat shared by a family of 3 and another individual
• A 4 bed house shared by a family of 4 and with a lodger
• A 2 bed flat rented to a couple
• A single-family home
• A studio flat rented to a single individual
• A room rented to a lodger within a shared house where the landlord lives in the property

Conclusion

HMOs are a popular type of rental property in the UK for young people and others who are looking for social and more affordable living arrangements. They provide a unique opportunity for tenants to live in a shared housing situation and to save on housing costs compared to a single-family home. However, it’s crucial to understand the nature of HMOs and the standards set by the local council to ensure a safe environment for all tenants.

Contact us today for professional HMO lettings and HMO management for your HMO in South London, or if you require HMO consultation.