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In the November 2008 Issue of Property Investor News
HMO Review
Under the changes made to the 1988 Housing Act by the 2004 Housing Act, a House in Multiple Occupation (HMO) has many definitions: an entire house or flat that is let to three or more tenants who form two or more households (members of the same family living together or a couple is one household) and who share a kitchen, bathroom or toilet facilities; a converted house which has been converted entirely into bedsits or other non-self-contained accommodation and which is let to three or more tenants who form two or more households and also share kitchen, bathroom or toilet facilities and lastly, a building which is entirely converted into self-contained flats if the conversion did not meet the standards of the 1991 building regulations and more than one-third of the flats are let on short-term tenancies.
Prior to 2006, the licensing of HMOs was not a legal requirement. However, most councils had a database listing those landlords that had HMOs before the Housing Act 2004 was passed, based on the 1988 Housing Act. Councils used to do generic checks on amenities such as how many kitchens were in the property.
David Harwood, an HMO consultant for Whitney UK, says: "The council would ascertain if the property met basic housing needs prior to 2006 and there were no safety rating systems back then. They would then write a letter to the landlord if the basic amenities weren't up to scratch."
HMO licensing was introduced to raise management and amenity standards in the rented property sector. Some HMOs are poorly managed and in poor physical condition as bedsits or properties aimed at student tenants. The aim of licensing is to improve the standards of such accommodation and ensure that landlords are managing their HMOs to the required standards.
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