HMO
Houses in Multiple Occupation or HMO
What is an HMO?
For many people this is a minefield – the press have not given enough attention to this area of letting in our opinion, as it affects many ordinary people’s lives from Students to Professional people sharing properties. In larger towns and cities across the uk, such as Birmingham,Bristol, Cheltenham, Manchester,and particularly in the South East/London area where property is either far too expensive to own/rent or there is not enough supply for the demand. Swansea is no different than these other cities and therefore the result is the same. To save costs, single persons and sometimes couples, pair up and share accommodation resulting in a multi-occupied property.
In simple terms the definition of a house in multiple occupation or an HMO is a property occupied by three or more people who do not form a single household.
If the property is three storey and occupied by five or more persons then that property must be Licensed (Mandatory Licensing)
The legal definition of HMO is very complex and often revolves around the definition of a household. Within the legal definition, there is no attempt to distinguish between different types of HMO.
Since the introduction of the Housing Act 2004, a powerful piece of government legislation, there is a clear picture as to what constitutes a HMO.
In simple terms:
A house which is occupied by three of more unrelated persons, who do not form a single household – this definition is supported by Sections 254, 257 and 258 of the Housing Act 2004
In more depth:
Section 254
(1) ” For the purposes of this Act a building or a part of a building is a ” house in multiple occupation
” if:
a it meets the conditions in subsection 2 (“the standards test”)
b it meets conditions in subsection 3 (” the self contained flat test”)
c it meets conditions in subsection 4 (“the converted building test”)
d an HMO declaration is in force in respect of it under section 255
e it is a converted block of flats to which section 257 applies
(2) A building meets the standard test if
a it consists of one or more units of living accommodation not consisting of self contained flats
b the living accommodation is occupied by persons who do not form a single household (section 258)
c the living accommodation is occupied by those persons as their only or main residence or they are to be treated as so occupying it (section 259)
d their occupation of the living accommodation constitutes the only use of that dwelling
e rents are payable or other consideration is to be provided in respect of at least one of those persons’ occupation of the living accommodation
f two or more of the households who occupy the living accommodation share one or more basic amenities or the living accommodation is lacking in one or more basic amenities
(3) A part of a building meets the self-contained flat test if-
a it consists of self contained flats; and
b paragraphs b -f of subsection 2 apply
(4) A building or a part of a building meets the converted building test if
a it is a converted building
b it contains one or more units of living accommodation that do not consist of a self contained flat or flats
c the living accommodation is occupied by persons who do not form a single household
d the living accommodation is occupied by those persons as their only or main residence or they are to be treated as so occupying it
e their occupation of the living accommodation constitutes the only use of that accommodation
f rents are payable or other consideration is to be provided in resect of at least one of those persons’ occupation of the living accommodation
Section 257
1) For the purpose of this section a “converted block of flats” means a building or part of a building which-
a has been converted into, and
b consists of, self contained flats
(2) This section applies to a converted block of flats if-
a building work undertaken in connection with the conversation did not comply with the appropriate building standards and still does not comply with them; and
b less than two thirds of the self contained flats are owner-occupied.
(3) In subsection 2 “appropriate building standards” means-
a in the case of a converted block of flats-
- i) on which building work was competed before 1st June 1992 or which is dealt with by regulation 20 of the Building Regulation 1991 and
- ii) which would not have been exempt under those Regulations
Section 258
HMOs: persons not forming a single household
(1) This section sets out when persons are to be regarded as not forming a single household for the purposes of section 254
(2) persons are to be regarded as not forming a single household unless-
a they are all members of the same family, or
b their circumstances are circumstances of a description specified for the purposes of this section in regulations made by the appropriate national authority.
(3) For the purpose of subsection 2(a) a person is a member of the same family as another person if-
a those persons are married to each other or live together a husband and wife (or an equivalent relationship in the case of persons of the same sex);
b one of them is a relative of the other, or
c one of them is, or is a relative of, one member of a couple and the other is a relative of the other member of the couple
(4) For the purposes-
a a “couple” means two persons who are married to each other or otherwise fall within subsection (3) (a);
b “relative” means parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew, niece or cousin;
c a relationship of a half-blood shall be treated as a relationship of the whole blood; and
d the stepchild of a person shall be treated a his child
What does this actually mean?
If a property is occupied by three persons, who are unrelated AND form two or more households (see above) AND share amenities (bathroom or kitchen or living room with each other, then this is an HMO.
If the property is occupied by five of more persons, who are unrelated AND form two or more households (see above) AND share amenites (bathroom or kitchen or living room with each other AND this property is on three or more storeys, then this is an HMO and MUST be LICENSED. – MANDATORY LICENSING
Where the first property is in an area for ADDITIONAL LICENSING – such as Castle and Uplands Wards, then this type of property will also MUST be LICENSED
Properties to which Section 257 of the Housing Act 2004 applies, are different in that, if the property has been converted into self contained flats, and that conversion did not comply (and still does not comply) with the 1991 Building Regulations – REGARDLESS of the number of occupiers – unless it falls into the Mandatory Licensing default, is also defined as an HMO.
Thereby this type of property will reuire a LICENCE under the ADDITIONAL LICENCING scheme if this property is within the Wards of Castle or Uplands.
Outside these wards, the landlord will be required to bring the property up to the required standard and MUST comply with the HOUSING HEALTH SAFETY RATING SYSTEM or (HHSRS)
All Houses in Multiple Occupation or HMOs will be required to be upgraded to meet the local Amenity Standards and Means of Escape in case of fire as well as other Fire Precautions. Check our links page for more information on these. If you are not letting in Swansea check with your local authority for their Amenity Standards and Fire Precaution requirements.
Conditions will apply to the licensing such as
-
Prescribed Amenity Standards – bathrooms, kitchen etc
-
Conditions apply – Gas, Electric, Furniture, Tenancy agreements, Fire precautions
-
Other conditions may apply – Antisocial behaviour, waste management, local manager, log book
You can find more information on HMOs by visiting HMO-Support.com or you can contact us direct on our blog
Case Law:
An HMO landlord in Sidcup who rented out a dangerous and sub-standard property as bedsits has been fined a six figure sum after a successful prosecution by the London Borough of Bexley.
The owner and manager of the three storey, eight bedroom property pleaded guilty to 22 offences and was fined a total of £99,000 plus costs of £5,835 at Bexley Magistrates’ Court on 18 November 2008. The fine was reduced from £110 000 after the landlord entered a guilty plea.
Inspections by Environmental Health Officers in November 2007 revealed uncapped gas pipes in bedrooms, dangerous electrics, lack of adequate fire precautions, badly maintained and filthy bathrooms and kitchen along with a lack of hot water to kitchen and sinks. Some of the occupants included young children.
Environmental Health Officers said that they had made every effort to work with the landlord but that he had consistently failed to take their advice about works required to make the property safe for tenants.
The Council prosecuted him for failing to manage the property under the Management of Houses in Multiple Occupation Regulations 2006.
Acknowledgement:
(Information obtained from LACORS) who considers that this case shows the seriousness of the offences, and the importance of councils taking appropriate action through the courts to protect potentially vulnerable tenants from unscrupulous landlords.
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Free public advice is believed accurate, but we accept no legal responsibility except to clients.
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