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Houses of Multiple Occupation – the ultimate guide for landlords

Houses of Multiple Occupation are an area of growth for investors, with 43% of these landlords in acquisition mode. So what do landlords need to know about HMOs, and about the rules and regulations that govern them? We answer some the key questions here.

What is an HMO?

HMO stands for House in Multiple Occupation. An HMO is generally defined as any property (house of flat) occupied by three or more people comprising two or more households who share facilities (kitchen, bathroom and/or toilet).

Who needs an HMO licence?

Not all HMOs need a licence from the local authority.

There are however two types of HMO license that operate in England – Mandatory and Additional.

  1. Mandatory HMO licensing

    Mandatory HMO licensing is restricted to larger properties under Part II of the Housing Act 2004. This would be any multi let property with 5 or more occupiers creating two or more households regardless of the size of the building.

    Major changes to the rules and regulations around these properties came into force on 1 October 2018 and changed both the definition and some key conditions.

    Before this date, there were an estimated 60,000 properties across England which needed a mandatory HMO licence. Following the changes, upwards of 220,000 properties may now need a licence.

  2. Additional licensing

    Additional licencing, often called Part 2 Licensing, is a discretionary scheme that many local authorities have adopted to help regulate HMOs that are not covered by mandatory licensing.

    This varies from authority to authority, but typically includes smaller privately rented shared houses and flats, designed to capture multi let properties with less than 5 occupiers

    Simple Tip: If you are not sure if your property requires a licence, get in touch with your local authority as soon as possible to discuss it.

What kind of properties need an HMO licence?

Prior to 1 October 2018 landlords needed a mandatory HMO licence if the property was:

  • Three or more storeys high
  • Contained five or more pople creating two or more households
  • Contained shared facilities such as a kitchen, bathroom or toilet

The new rules bring many more properties into the mandatory HMO classification and the main changes are:

  • The removal of the three-storey rule
  • The inclusion of certain flats that are situated above or below commercial premises
  • New minimum room sizes.

What are the minimum statutory conditions for an HMO licence?

Since 1 October 2018 the minimum conditions a property has to meet include:

  1. Minimum bedroom size:

    The new statutory minimum requirement is 6.52 square meters or 10 square meters for HMO’s in which all tenants have their own bathroom but share other facilities such as a kitchen.

    Simple Tip: This is the MINIMUM requirement and local authorities may well insist on larger room sizes.

  2. Fit & Proper Person Test

    Landlords must undergo a Fit & Proper Person Test. They must not have convictions which might affect their suitability for the licence or have breached the landlord laws or code of conduct.

  3. New waste management obligations

    Landlords must also provide enough storage facilities to deal with the holding and disposal of all household waste. Landlords must comply with the scheme issued by the local authority (if one exists) for the storage and disposal of domestic refuse pending collection. A failure to comply with the scheme is a breach of the licence and a criminal offence.

  4. Alarms

    Landlords must install smoke and carbon monoxide alarms;

  5. Gas Safety

    Landlords must send the council an updated gas safety certificate every year

  6. Electrical appliances

    Landlords must provide safety certificates for all electrical appliances when requested.

Who might be caught out by the changes?

  1. Landlords who are operating HMOs that are only 2 storey or less, with 5 or more occupiers. Traditionally these Landlords would have been exempt from requiring a licence.
  2. Those running properties with smaller rooms may also have to reconfigure based on the new minimum room sizes.

I already have an HMO licence – do the new rules apply to me?

The new conditions will not apply to existing HMO licences – those issued before 1 October 2018 – until the current licence expires. In other words, if you already have a licence the changes will only apply when this is due for renewal. At renewal the new statutory conditions will apply.

Landlords who already have an additional or selective license but whose properties will now come under the extended scope of mandatory HMO licensing will need to contact their local authority to determine if they need to be migrated to a HMO licence or not.

I have an additional HMO licence – will the new conditions apply to me?

The new minimum room size conditions apply to all Part 2 or additional licences. That includes HMOs that are required to be licensed under additional licensing provisions as well as the mandatory licensing regime.

The new rules will only apply, however, once that licence expires and is renewed or if it taken out for the first time.

How long do landlords have to comply with the new conditions?

Landlords falling into the mandatory HMO licence criteria generally have a grace period of six months, from 1 October, to make changes to their properties so that they comply with the new conditions. That might mean reconfiguring properties, for instance to comply with minimum bedroom sizes. It’s recommended that landlords check with their local authorities to ensure the national approach has been adopted.

Simple tip: After this, those that do not comply will be subject to a fine of up to £30, 000 as well as possible criminal prosecution.

For those with licences issued before 1 October, an authority has no grounds to act against an existing license holder that is not compliant with the new standards. Landlords that do not comply with the new minimum room standards at the time of renewal will be given a notice period of up to, but most likely less than, 18 months to comply.

What are the penalties for failing to apply for, or meet, HMO licence conditions?

Landlords of HMOs that fall under the new definition – and do not yet have a licence – have committed a criminal offence by failing to apply for a licence or a temporary exemption before 1 October 2018.

Landlords can be subject to a civil penalty notice (fine) up to £30,000 or risk being prosecuted by the council and if found guilty given a criminal record, be fined an unlimited amount and/or ordered to pay court costs and a victim surcharge.

Simple tip: It’s worth noting that whilst the property is unlicensed, landlords cannot issue a Notice of Seeking Possession under Section 21 Housing Act 1988 to evict tenants.

How do you apply for an HMO Licence?

Landlords or their agents need to submit a licence application to the local council using the council’s application form. Councils usually ask for a floorplan of the property in addition to other supporting documentation.

You will also need to pay an application fee which is normally non-refundable. These vary but the average licence fee is around £1,000 for a first-time application. Renewals are normally less than the first-time fee.

A licence will normally be granted for a five-year period.

What if a landlord has a problem getting an HMO licence?

A local authority will normally only refuse to grant a licence if it has serious concerns regarding the HMO, its management, or the landlords inability to pass a fit and proper person check.

Councils will try to resolve any problems with the applicant before refusing a licence. Resolution of such problems may include proposing a different licence holder or imposing certain conditions.

Landlords can disagree with the conditions set out in a licence, for example, those which state a maximum number of occupiers or a requirement for work to be carried out. The council must consult with the applicant, giving its reasons and allowing them a period of 14 days to make their case.

A right of appeal to a residential property tribunal is available to HMO licence applicants if they disagree with a council’s final decision.

Is an HMO right for me?

Carl Agar, landlord, letting agent, developer and Chief Exec of the Home Safe licensing scheme, talks about some of the pros and cons of running an HMO in this video.

Source: Simple Landlords Insurance

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New HMO and Section 21 rules start today

Landlords and agents should be aware of important changes to the rules covering HMOs (house of multiple occupation) and issuing Section 21 notices, which come into force from today.

New HMO rules

From today, all landlords, or managing agents, of properties which have five or more occupiers who form two or more households will need to have, or have applied for, a mandatory HMO license.

If you have a property with five or more occupiers who do not form just one household, and this includes children, regardless of the number of storeys the property has, you need an HMO license issued by your local authority.

There is no grace period and the penalties for not complying can be severe: up to a £30,000 fine, a First Tier Property Tribunal Rent Repayment Order and a Banning Order, and a criminal record.

Some landlords may need to make structural alterations or improvements to safety standards to comply with the new minimum room sizes in HMOs.

New section 21 rules

From today, all landlords in England with Assured Shorthold Tenancies (ASTs), regardless of their start date, will need to comply with the requirements of the Deregulation Act 2015 as to when and how a landlord can serve a Section 21 Notice, which enables them to terminate a tenancy agreement.

When issuing a Section 21 Notice of Possession, landlords will now be required to use Form 6A.

The form, prescribed by government, combines the two previous types of Notices into a single Notice for both periodic and fixed-term tenancies. Therefore, landlords should stop using their old Notices from today.

In addition, under the Deregulation Act 2015, landlords wishing to issue their tenants with a Section 21 Notice should ensure they have shared the ‘How to rent: the checklist for renting in England’ guide with tenants; make sure the property has an up to date Gas Safety Certificate and the tenants have seen it.

Landlords must also publish the property’s Energy Performance Certificate (except when the property isn’t required to have one); inform tenants which scheme their deposit is protected in; where the property is licensed, provide a copy of the licence to all of the tenants.

Source: Simple Landlords Insurance

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New regulations for landlords in 2018: HMO licences, eviction changes, mortgage relief cuts and more

October sees the introduction of yet more new rules for landlords to keep on top of.

Recent years have seen a host of changes for landlords to deal with, a succession of policy tweaks that risk making their portfolio more complicated to administer and even less profitable.

Generally these changes are limited to the start of a new tax year, but next month will see the introduction of new rules covering houses in multiple occupation (HMO) and evictions.

Here’s what you need to know.

Licensing for HMOs

From 1st October, there will be a significant change to the licensing of houses in multiple occupation (HMOs) for landlords.

Currently, you only have to get a licence if the property has at least three storeys and is being occupied by five or more individuals, who are not all related to each other.

In addition, some local authorities can require licences for HMO properties in specific areas, even if they don’t tick either of those boxes.

Licencing is about to become far more widespread though, as the minimum property size is being removed. As a result, any HMO properties with five or more occupants will require a licence.

You’ll need to get a move on too as you need to have applied for your licence before 1st October, otherwise you’ll be classed as renting the property out illegally.

Minimum room sizes for HMOs

The changes to licences aren’t the only development for HMO landlords to be aware of. There will also be minimum room sizes for any room being used as a bedroom.

The minimum sizes are:

  • 4.64㎡ for any room in which one child under the age of 10 sleeps
  • 6.51㎡ for any room in which one person over the age of 10 sleeps
  • 10.22㎡ for any room in which two people over the age of 10 sleep

Any rooms that are smaller than 4.64㎡ cannot be used as a bedroom. In fact, if there is any room within the HMO that is smaller than that, irrespective of how it’s being used, the landlord will have to inform the local housing authority.

New eviction rules

One of the ways that a landlord can take back possession of a rental property is by issuing them with a Section 21 notice. The landlord doesn’t have to give a reason for claiming back possession but must provide the tenant with at least two months’ notice.

The Deregulation Act 2015 changed the way that a Section 21 notice can be used to bring some tenancies to an end, though this was limited to tenancies agreed on or after 1 October 2015.

However, from 1st October 2018, this is being extended to all tenancies.

So what’s changing? For starters, a Section 21 notice cannot be issued during the first four months of a tenancy (though this doesn’t apply if a tenancy has been renewed).

In addition, the notice is only valid for six months from the date on which it was issued. If you don’t follow up with possession proceedings within that six month period, you’ll have to issue another Section 21 notice.

The big change though is over ‘revenge evictions’.

Essentially, if a tenant makes a legitimate complaint about something to do with a property, such as repairs that are needed, and they aren’t dealt with then the tenant can take the issue to the local housing authority.

If the council then issues an improvement notice or emergency work notice ordering the improvements to be carried out, then you will need to act on that before issuing a Section 21 notice. Otherwise, your notice will be invalid.

So those are the key changes you need to be aware of for October. Now let’s look a little further back at the other changes that have already happened in 2018.

Ongoing changes to mortgage interest relief

Before April 2017 it was possible for landlords to deduct the interest they paid on their mortgages from their taxable income – which meant they paid tax on their profits rather than their turnover.

However, the Government decided to change the rules on that, amid concerns that buy-to-let landlords gained tax benefits that homeowners couldn’t, giving them an unfair advantage. That all began changing in the last year.

From April last year, landlords were only able to claim relief on 75% of their mortgage interest. From April this year, that fell to 50% and it’s going to keep galling until it reaches 0% in 2020.

At that point, it will be replaced by a tax credit equivalent to 20% of mortgage interest.

Changes to energy efficiency measures

New rules mean that from April this year new tenancies and renewals need to be at least rated E on their Energy Performance Certificates.

This rule will be rolled out across all tenancies over the next two years and landlords who don’t meet the requirements could face fines of up to £5,000.

Most rental homes will easily comply with this new rule as the vast majority of recently built homes will easily meet that efficiency rating.

However, an estimated 330,000 rented homes were below this standard when the rule was implemented in April, according to Which?.

While listed properties may be exempt, landlords of non-listed but older and structurally less efficient homes may need to worry.

The Rogue Landlord Database goes live

It’s finally happened; after many pledges from Government, it has finally set up a national database of ‘rogue’ landlords to share with Local Authorities.

The Ministry of Housing, Communities and Local Government has created the database, which will include landlords who have a conviction for offences such as letting overcrowded properties, unlawful eviction and gas safety offences.

Its plan is that councils will be able to share data with each other more easily so they can monitor problem landlords more closely.

However, the list will not be made public and, because of that, the scheme has received some serious criticism.

David Cox, chief executive of the Association of Residential Letting Agents (ARLA) says that it was a good idea but has been poorly executed.

“When this legislation was first announced, we were wildly supportive – anything which will help eradicate bad letting agents and landlords has our full support,” he explained.

“However, the outcome is disappointing. The database won’t be public, which means no one will be able to see it and therefore letting agents and landlords who are on the list can continue operating with impunity.

“This appears to be a pointless exercise; if the list were made public – like the equivalent for estate agents – rogue agents and landlords would leave the market for good.”

Letting fees ban

It’s not part of the 2018 tax year changes, but it’s possible it will come into force at some point in the next seven months, along with limits on deposits.

If the new legislation was put through, tenants could not be charged high fees just to apply to rent a new home. Some tenants are even charged high fees just to renew their tenancies each year.

The ban may not directly affect most landlords but many letting agents and industry commentators have suggested that it will mean a hike in prices for them as their agents recoup their lost profits.

What else could be coming?

Landlords might be getting tired of the political spotlight but with more and more people renting, especially younger people, mainstream politicians are increasingly recognising there’s a public appetite for housing reform.

So there’s likely to be more changes even before the next tax year. There has been talk of a new Ombudsman that could deliver binding resolutions to owner/tenant disputes.

There’s likely to be a new code of practice introduced to increase greater fairness for renters and the Draft Tenant Fees Bill could well mean that rental deposits are capped at six weeks’-worth of rent.

Source: Love Money

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Property manager landlord wins appeal against nine HMO convictions

A landlord and property manager has won his appeal against convictions relating to a House in Multiple Occupation.

Cyril Thomas, director of Platinum Crown Investments in Colchester, was fined £20,000 by magistrates last December.

The case was sparked by a tenant’s complaint to Colchester Council about heating and mould. This led to an investigation at the end of 2015.

Thomas faced nine charges, but immediately after the convictions he said he would appeal.

He has now had them overturned by Chelmsford Crown Court.

Afterwards, he said he was delighted.

He said: “It has been a costly, emotionally draining and time consuming process for all involved. The judge stated that all charges were to be dismissed due to insufficient evidence from the council.

“One of the main reasons why I was able to successfully defend myself was that over the last several years I had invested significantly in bespoke software systems that enabled me to provide the necessary evidence when required.

“It is important for property managers and landlords to invest in systems that help them to stay on top of all the legal requirements that are now in place.

“My defence barrister Archie Maddan pointed out several issues with the council’s case. Some of the issues included the fact that one of the alleged charges failed to state what Mr Thomas was actually being convicted for.

“Several of the alleged charges did not occur on the date that Environmental Health Officer Torben Wood initially claimed that they occurred on and were not confirmed by the judges to be offences that warranted a charge.

“The main reason for the dismissal was the fact that the council never had sufficient evidence to prosecute me in my personal name from the beginning but for whatever reason still decided to push the case forward.”

He said at least three of the alleged offences were due to tenant negligence – for example, taking lightbulbs from communal areas to put in their bedrooms, and leaving bikes in fire escapes despite written warnings from Platinum Crown.

Thomas will now be refunded the fine and can apply to have some of his legal fees refunded.

A spokesperson for Colchester Council said: “The earlier decision by Colchester Magistrates’ Court to judge Mr Thomas, rather than his company Platinum Crown Investments, had a key bearing on the case and means no party has been convicted for the breaches identified.

“However, the appeal was upheld on the basis that Mr Thomas, in his capacity as landlord, was not the person responsible – not that violations did not exist – and we therefore maintain that it was right to take the action we did against serious breaches of the regulations.

“While we will continue to work closely with local landlords and letting agents to improve standards of accommodation in the private rented sector, we remain committed in our duty to pursue legal action whenever accommodation is not being responsibly managed.”

Source: Property Industry Eye

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Only a week left before Mandatory HMO licensing is in force

With an extension of the rules bringing a wider range of houses in multiple occupation (HMO) into the mandatory licensing regime coming into effect on 1 October, landlords have just one week to apply for a licence.

This licensing requirement applies to all properties that meet the following criteria:

  • is occupied by five or more persons
  • is occupied by persons living in two or more separate households
  • and meets:
    • the standard test under section 254(2) of the Act
    • the self-contained flat test under section 254(3) of the Act but is not a purpose-built flat situated in a block comprising three or more self-contained flats, or
    • the converted building test under section 254(4) of the Act.

Properties that fall into scope of the new definition but are already licensed under a selective or additional scheme, will be passported over to the new scheme at no cost to the landlord.

Richard Lambert, CEO of the National Landlords Association (NLA), says:

“The Government made the announcement about mandatory HMO licensing in January, but we’re concerned that many landlords may not have applied for their licenses. We encourage all landlords to make sure they do so before 1 October to be compliant.

“It may be that landlords thought there was a six-month grace period, as was originally proposed. This is not the case and we don’t want to see anyone committing an offence through ignorance.”

The NLA is also concerned that local authorities are not prepared for, or are still unaware of, the mandatory licensing for HMOs.

Mr Lambert says:

“We have been contacted by a number of our members who have tried to apply for licenses, but the local authority has purported not to know anything about it or simply didn’t have the systems in place to process the applications.

“This is an unacceptable failing on the part of the Ministry of Housing, Communities and Local Government, which should have ensured all local authorities were up to speed with the changes. It’s disappointing that more consideration hasn’t been made for the significance of this change and the challenges local authorities face in implementing it.

“Our advice to landlords who have encountered this is to apply for an HMO license using the existing process, even if the council hasn’t updated their forms.”

The guidance for local authorities on HMO and residential property reforms is available at gov.co.uk

Source: Property118

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Licensing lottery: Some councils unprepared for changes to mandatory HMO licensing

Too many local authorities are unprepared for the changes to mandatory licensing that are due to come into force in less than two weeks’ time, the RLA can reveal.

The changes will require landlords who let a property to five or more tenants forming two or more households to apply to their local authority for a licence, irrespective of building size. A licence is valid for up to five years, and each HMO property requires a separate licence.

Despite the legislation change set to affect over 177,000 properties, the RLA is concerned that there are still many councils unprepared for this change, and has now written to MHCLG about this.

A lottery

While some councils, for example Birmingham City Council, Newcastle City Council and Havering Council ARE prepared for the change to mandatory licensing, the RLA has discovered that many councils are completely unprepared.

Examples include Manchester City Council, which does not yet have an online system up and running for landlords to apply for a licence, and Hackney Council, which does not yet have the necessary forms available on its website for landlords.

Out of date information

Some councils also have out of date information around mandatory licensing on their websites. For example, in the definition of a HMO, they state the current ‘three storey rule’ – this is that HMOs compromise of 3 or more storeys, occupied by 5 or more persons from two or more households. However, the websites fail to state that as of 1st October 2018, this will change, with the three storey rule set to be phased out.

Yet others are issuing licences for a much shorter period than the standard 5-year licence.  All new HMO licences issued by Norwich will be for just one year, meaning a vastly increased amount of paperwork both the council and landlords have to deal with.

The RLA is therefore reminding landlords that if they have a HMO property that will fall into the extended scope of mandatory licensing which does not already have a licence, they MUST apply for one BEFORE the 1st October. There is no grace period, so it is imperative for landlords to apply for a licence, or else they could face a fine or prosecution and a rent repayment order.

What the RLA has been doing

In ongoing preparation for the changes, the RLA has written to over two hundred local authorities reminding them of the changes to mandatory HMO licensing. You can read the letter we have been sending to councils here

In addition to this, the RLA has also written to some local authorities in relation to licence fees. For example, Cheshire East Council has been increasing the cost of licences-which they say will ensure that they can respond to increased demand of properties which will soon fall into the scope of mandatory licensing.  You can read more about this here. 

What you need to do

If your property requires a mandatory licence, and you have not yet applied, you must get in touch with your local authority about this. Each local authority will have different communication strategies. As there is no grace period for the new law, you need to act now so that you are not in breach and at risk of being fined.

Source: RLA

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City landlord licensing charges set to increase

The price of a landlords’ licence in Nottingham is set to go up after plans were approved today.

For houses with more than four tenants, landlords in most areas must obtain a Houses in Multiple Occupation (HMO) licence.

For ‘less compliant’ landlords, the price of a licence will go up by £810, from £910 for a new licence to £1,720.

‘Standard’ landlords will pay an extra £420 for their HMO licence – up from £910 to £1,330.

Landlords with accreditation will pay an additional £80, up to £990.

Previously, there was a flat fee for HMO licences, but from January next year, those who will pay the most will be those deemed ‘less compliant’, meaning those who are ‘consistently non-compliant or provide a poor application.’

It is the first change in the price of a licence since 2014. As with selective licensing, the council cannot make a profit from the scheme.

A leading Nottingham property expert said the cost will have to be passed on to tenants and would hit those at the bottom of the ladder hardest.

Giles Inman is from East Midland Property Owners, which represents around 600 landlords and 150 agents in the city.

He said: “The cost of it all is just getting silly. We weren’t kept in the loop or given any advance warning. There was just a consultation and we didn’t hear anything back, and then all of a sudden we’re informed that they’re going up. We never expected it to go up by this much.

“From a landlord’s perspective it’s just crazy and it’s come out of the blue.

“It’s just them raking in the cash. They already have the powers to deal with the less-compliant landlords without charging them more for an HMO.

“The costs will be passed on. We’re a business at the end of the day. I know the council thinks we should take the cost ourselves, but no business does that.

“So it will be passed on one way or another, and it’s the tenants on housing benefit and at the bottom of the ladder who will be most impacted by that.”

The revised licence fee will now be made up of two payments – one at application and one when the licence is issued.

Each licence can last up to five years, as long as the conditions of the licence are met and no other offences occur.

Councillor Jane Urquhart is the city council’s portfolio holder for planning and housing, and represents the Wollaton East and Lenton Abbey ward for Labour.

She said: “This scheme, along with others, is a major part of our plans to improve all types of private rented housing in the city.

“We believe something as important as providing decent and safe housing should be monitored and kept in check via a licensing scheme in the same way as taxis, pet shops and some beauty treatments.

“Not only does the scheme help to improve poorer standards of accommodation, it means tenants know what is expected of their landlord in terms of the management of their home.

“It also helps us to tackle rogue and bad landlords by providing a clear set of guidelines which all landlords need to meet, and helps prevent bad landlords cutting corners or ‘undercutting’ good ones, creating a level playing field for all.”

Source: West Bridgford Wire

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Agent who let out ‘fire hazard’ room in HMO is told to pay over £32,000

An agent who let a tiny room behind a kitchen to a tenant has been ordered to pay more than £32,000.

Viviane Almieda, of My London Services, in Willesden, pleaded guilty to breaching HMO licensing conditions, including failing to comply with the council’s amenity and space standards as well as obstructing the council’s investigation, in Willesden Magistrates Court on Tuesday.

She ignored warnings from Brent Council enforcement officers that a room behind the kitchen was not safe to rent out because it was a fire hazard.

The room in a converted three-bedroom property also measured less than 6.5 square metres – the minimum legal requirement for a single bedroom.

Cllr Eleanor Southwood, cabinet member for housing and welfare reform, said: “Housing tenants in rooms that are too small and hazardous to fire risks is illegal. There’s no excuse for it.

“Landlords, agencies or sub-letters who exploit tenants will pay heavily in court. Every resident in Brent has the right to a decent standard of living.”

Almieda was handed a £30,000 fine plus ordered to pay £2,090 in court costs and a £170 victim surcharge.

Source: Property Industry Eye

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Cheshire East Encouraging HMO Licensing

Cheshire East Council is reminding buy to let investors that new legislation is set to come into effect in October requiring that all houses in multiple occupation (HMOs) with over five occupants must be licensed.

From 1 October 2018, HMOs must be licensed if there are five or more occupants who are living in two or more separate households. This is regardless of how many storeys the home is. This means that around 500 of the approximately 600-650 HMOs in Cheshire East will require a compulsory licence. This is in stark contrast to the 51 who currently need it.

Landlords are being advised to ensure that they have completed their licence application ahead of the deadline. Operating without a licence is a criminal offence and any landlords who do so will face an unlimited fine.

Cheshire East Council cabinet member for housing, planning and regeneration, Councillor Ainsley Arnold said: ‘The changes in government legislation will allow us to bring HMOs under closer scrutiny and help ensure better management standards and living conditions for tenants. Our housing standards team is currently processing more than 40 licence applications from landlords and carrying out the necessary inspection visits. However, we know that there are many more properties that will require a licence and we urge landlords, who have not already done so, to submit their applications as soon as possible.’

The council is also aiming to encourage people to report any properties in their local area that they believe to be HMOs.

Councillor Arnold added: ‘Thank you to everyone so far who has reported the location of a HMO to us via our website. Our online reporting form takes just a couple of minutes to fill in and the information received allows our officers to investigate whether the properties are licensed and check that they are safe for people to live in.’

Source: Residential Landlord

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​Deadline to new HMO licensing approaches

Agents and landlords are reminded that new rules about the licensing of Houses in Multiple Occupation (HMO) are set to come into force next month.

All properties housing five or more people from two or more separate households will be required to have an HMO licence, from Monday October 1.

At the moment, a property with five or more tenants from separate households only requires an HMO licence if it has three or more floors.

The new legislation – which was first announced in December – will also see minimum space requirements updated.

From October, the minimum bedroom space will be 6.51 square metres for a single bedroom and 10.22 square metres for rooms occupied by two adults. Rooms housing children aged ten or below will need to be a minimum size of 4.64 square metres.

Landlords will also be required to provide an adequate number of bins for their properties.

The cost of HMO licences varies depending on the local authority, with some charging a few hundred pounds and others charging more than £1,000.

An HMO licence is valid for five years and landlords need a separate licence for each HMO they let.

The Ministry of Housing, Communities and Local Government has said that the new rules are being introduced to minimise rogue landlords taking advantage of increased demand for HMOs.

It says that the previous system meant that it was ‘pot luck’ whether a vulnerable tenant ends up renting from a rogue or good landlord.

The aim of the new rules is to reduce consistent rental property problems, including overcrowding, failure to meet health and safety standards and housing illegal migrants.

Fines for non-compliance with HMO licensing rules are unlimited, while failure to comply with minimum bedroom sizes could see a landlord fined up to £30,000.

Source: Simple Landlords Insurance