Introduction
This article explains the law surrounding section 257 HMOs in its simplest terms. We have two other articles on HMOs one for tenants, the other for landlords.
The article will be useful to residential landlords, social landlords, management agents, tenants and chartered surveyors in England and Wales.
The law has effect from 1 October 2007.
The relevant legislation is:
· The Licensing and Management of Houses in Multiple Occupation (Additional Provisions) (England) Regulations 2007;
· The Houses in Multiple Occupation (Certain Converted Blocks of Flats) (Modification) Regulations
· The Housing Act 2004
· Transitional Provisions for section 257 (HMOs) (England) Regulations 2007
· The Housing Act 2004
Licensing aims to raise housing standards in order to benefit tenants. It also benefits landlords by preventing rogue landlords from undercutting on rent by providing poor quality housing. Simply, if the property is not up to scratch, it will not be granted a license.
What is the law?
Under the Housing Act 2004, where more than two people occupy a property but dont form a single household, usually because they are not related, the property is classified as an HMO.
From 1 October 2007, private landlords with HMOs of three or more storeys AND with five or more tenants will require a license. The licenses impose tough standards on fire and electrical safety, the number of people in occupation and even the kind of person who can be a landlord.
The Housing Health and Safety Rating System
As a manager of an HMO, you have health and safety responsibilities which should meet the standard set by the Housing Health and Safety Rating System for residential premises. You must:
take the following safety measures:
- keep all means of escape in the HMO free from obstruction, maintained and in good working order,
- keep all means of fire fighting equipment in the HMO free from obstruction, maintained and in good working order;
- ensure that all notices indicating the location of means of escape from fire are displayed in positions within the common parts of the HMO that enable them to be clearly visible to all the occupiers;
- take all such measures as are reasonably required to protect the occupiers of the HMO from injury, having regard to
(a) the design of the HMO;
(b) the structural conditions in the HMO; and
(c) the number of flats or occupiers in the HMO.
- in relation to any roof or balcony that is unsafe, either ensure that it is made safe or take all reasonable measures to prevent access to it for so long as it remains unsafe
- in relation to any window the sill of which is at or near floor level, ensure that bars or other such safeguards as may be necessary are provided to protect the occupiers against the danger of accidents which may be caused in connection with such windows
and
- maintain a good, clean water supply and efficient drainage;
- supply and maintain gas and electricity;
- arrange for regular testing of gas and electricity installations by a recognised engineer;
- provide suitable waste disposal facilities - e.g. sufficient bins;
- maintain common parts - including fixtures, fittings and appliances - in good and clean decorative repair;
- provide living accommodation and any furniture supplied with it in working order and clean condition at the beginning of a tenancy;
- take reasonable steps to ensure that tenants are not causing problems within the boundaries of the property
- clearly display your name, address and telephone number in the common parts of the HMO.
What is an HMO?
An HMO is:
- an entire house or flat which is let to 3 or more tenants who form 2 or more households and who share a kitchen, bathroom or toilet. (For a definition of household see the relevant faq.); or
- a house which has been converted entirely into bedsits or other non-self-contained accommodation and which is let to 3 or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities; or
- a converted house which contains one or more flats which are not wholly self contained (ie the flat does not contain within it a kitchen, bathroom and toilet) and which is occupied by 3 or more tenants who form two or more households; or
- a building which is converted entirely 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.
Lastly, the property must be used as the tenants main residence. Note, properties let to students and migrant workers will be treated as their only or main residence.
The rules will apply to section 257 HMOs that is - HMOs that are converted blocks of self-contained flats where the conversion building work does not comply with certain building standards and where less than two thirds of the flats are owner-occupied. If you manage or control a section 257 HMO, you must apply to your local housing authority for an HMO licence.
Is a block of flats an HMO?
A purpose built block of flats is not an HMO. However, an individual flat within it might be if it is let to 3 or more tenants (at least one of whom is unrelated). The flat will not be subject to mandatory licensing but local licensing might still apply.
What is a household?
The following are 'households' for the purposes of the Housing Act 2004.
Members of the same family living together including:
- couples married to each other or living together as husband and wife;
- relatives living together, including parents, grandparents, children (and step-children), grandchildren, brothers, sisters, uncles, aunts, nephews, nieces or cousins;
- half-relatives will be treated as full relatives.
- a foster child living with his foster parent is treated as living in the same household as his foster parent.
- domestic staff are included in the household if they are living rent-free in accommodation provided by the person for whom they are working.
And some practical examples:
- Three friends sharing together are considered three households.
- If a couple are sharing with a third person that would consist of two households.
- If a family rents a property that is a single household.
- If that family had an au-pair to look after their children that person would be included in their household.
Which HMOs need a licence?
An HMO must be licensed if it is a building consisting of three or more storeys and is occupied by five or more tenants in two or more households.
A local housing authority will grant a licence if the property is reasonably suitable for occupation by not more than a maximum number of households or persons. The property will need to meet minimum standards in terms of the number of bathrooms, toilets, washbasins, showers, cooking and laundry facilities. The local housing authority will also need to be satisfied that the house will be managed by someone who is competent and fit to manage it.
Do I need a license?
- do you rent out property?
- which has three or more storeys (including habitable attics or basements)?
- which has five or more unrelated tenants?
If any of the answers were yes you probably need a license. Further, you should check with the local authority where your property is located as some local authorities may also licence smaller HMOs.
For more information, please see our article entitled The Licensing and Management of Houses in Multiple Occupation: for landlords
· How do I work out how many storeys there are?
· Exceptions
· Which parts of the UK does the new licensing regime cover
· Will a property in which a landlord lives with other occupants be classified as an HMO?
· HMOs which do not meet the criteria
· Other controls that
· Is the licence per landlord or per property
· Is the licence for the owner or the manager of the property
· Relevant council department
· The application process
· License validity
· Pricing and discounts
· Ombudsman
· Penalties for non-compliance
Relevant Net Lawman document templates:
All Net Lawman property documents
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