The new HMO rules come into effect in England on 1 October 2018. The top three takeaways are 1) Anyone renting properties to five or more people from at least two different households is required to have a Houses in Multiple Occupation licence, 2) Landlords who fail to comply face an unlimited fine or a financial penalty of £30,000 as an alternative to prosecution, 3) More than 160.000 buy-to-let properties are affected.
The changes will remove the three-storey rule. Currently, mandatory licensing applies to HMOs of at least three storeys and five occupants comprising of two or more-family units. The regulations also bring purpose-built flats where there are up to two flats in the block, into the scope of mandatory licensing.
Criteria
It is critical that all landlords check if their properties come under the new regulations, if this the case and you have a property in W4, you should make sure you apply to London Boroughs of Hounslow or Ealing as soon as possible. Properties will be subject to mandatory licensing if they meet the following criteria:
• It 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.
• the Order applies to HMOs in England, but does not apply to converted blocks of flats, to which section 257 of the Act applies.
According to the National Landlords Association (NLA), many local authorities are completely ill-prepared for the changes. It advises that landlords apply using the existing processes and recommend you ensure you receive an acknowledgement from your local authority.
The NLA has put together a
handy guide on the appropriate action you should take:
Minimum room sizes
The act will also bring into force new minimum room sizes:
6.51m2 for one person over 10 years of age
10.22m2 for two persons over 10 years of age
4.64m2 for one child under the age of 10 years
Any room of less than 4.64m2 may not be used as sleeping accommodation, and landlords must inform their local authority of any room in the HMO which is under this size.
Grace period
The Government had previously announced that there would be a six-month grace period. This is now not the case, all landlords must have applied for a licence by 1st October 2018.
Waste schemes & disposal requirements
Each local authority can impose their own requirements. Landlords will be required to comply with local waste schemes (if in place) and a failure to do so will be considered a breach of the licence and a criminal offence.
Related NLA articles concerning HMO licensing
here and
here. Ministry for Housing, Communities and Local Government explanation
here.
