A house in multiple occupation (HMO) refers to a residential property where multiple individuals live under separate tenancy agreements. To convert a property into an HMO, planning permission is required, and the use class typically changes from C3 (dwelling houses) to C4 (houses in multiple occupations).
An HMO is legally defined as a property rented out to at least 3 people who are not from a single household and where certain facilities like bathrooms or kitchens are shared among the tenants.
For properties designated as “large HMOs,” additional requirements apply. A large HMO is identified by the following criteria:
- The property is three or more stories high.
- The property accommodates five or more individuals from different households.
- Tenants share amenities such as bathrooms, toilets, or cooking facilities.
Furthermore, changes implemented on October 1, 2018, stipulate that any HMO housing more than 5 tenants from two or more households who share certain facilities must obtain a licence regardless of the number of storeys in the property. Additionally, purpose-built blocks with up to two flats occupied by five or more people will also require an HMO licence for the owner.
Even if an HMO does not meet the specified criteria, some councils may still require the owner to hold a licence. Therefore, it’s crucial to verify this requirement with your local council.
It’s important to note that HMO licences are non-transferable. As a buyer, you will need to obtain your own licence to operate the property as an HMO after completion. Failure to secure a licence can result in the property being unable to operate as an HMO and may lead to substantial fines.
In addition to obtaining an HMO licence, property owners are obligated to provide the council with an updated gas safety certificate annually and install and maintain smoke alarms throughout the property. Moreover, safety certificates for all electrical appliances must be available upon request.
For guidance on your legal responsibilities when purchasing or leasing an HMO, please contact the DLS property team.
