Houses in Multiple Occupation

The Housing Act 2004 (‘the Act’) introduced a new definition of ‘house in multiple occupation’ (HMO) along with revised management regulations and new requirements for licensing certain types of HMO.

NOTE: These provisions came into force for some HMOs (typically those where households share amenities) in April 2006, but for houses converted solely into self contained flats (‘Section 257 HMOs’) the new provisions for management and licensing do not yet apply.  If you have any queries about HMOs of this type, please contact the HMO Team

What is a HMO?

An HMO is a building or part of a building occupied as a main residence by more than one household.  A household can be one person or several people provided that they are related to each other, including cousins, grandparents and stepchildren as well as partners living together.

An HMO can therefore include buildings converted solely into self-contained flats (‘Section 257 HMOs’ – see below and note above) as well as buildings containing bedsits and/or non-self contained flats, shared houses and hostels.

The parts of the Act relevant to HMOs include Sections 254 to 264 and Schedule 14. The full text of the Act can be found at www.opsi.gov.uk/acts/acts2004/20040034.htm

What is a Section 257 HMO?

Section 257 of the Act relates to a “converted block of flats" which is a building (or part of a building) which has been converted into, and consists of, self-contained flats. Buildings of this description are HMOs if;

• the conversion work was not done in accordance with ‘appropriate building standards’
• less than two-thirds of the self-contained flats are owner-occupied.

‘Appropriate building standards’ usually means the 1991 Building Regulations or whichever later Building Regulations applied at the time the work was done.

NOTE: for houses converted solely into self contained flats (‘Section 257 HMOs’) the new provisions for management and licensing do not yet apply.

Most buildings converted into self contained flats should already be registered under the Council’s existing HMO registration scheme (see below), which has been in place since 2001.

If you own or manage a building converted into flats which is already registered as an HMO, you need take no further action; the Council will advise you if and when the building is ‘passported’ into the licensing regime.

If you own or manage a building converted into flats which is not registered as an HMO, contact the HMO team for further advice.

Are there any exceptions?

Yes.  Buildings not regarded as HMOs (excluding Part I of the Housing Act 2004 – see HHSRS section) include:

• Buildings controlled or managed by public sector bodies eg Registered Social Landlords, Police Authorities etc
• Buildings regulated by other legislation eg care homes, detention centres etc
• Buildings controlled or managed by an educational establishment (specified by type or otherwise) and occupied by the establishment’s students
• Buildings occupied by religious communities whose principal occupation is prayer, contemplation, education or the relief of suffering
• Buildings occupied by the owner and members of his household, provided there are no more than two other persons (eg lodgers)
• Buildings occupied only by two persons who form two households

References

Housing Act 2004, Schedule 14 www.opsi.gov.uk/acts/acts2004/40034-at.htm

Statutory Instrument 2006 No. 373 www.opsi.gov.uk/si/si2006/20060373.htm

HMO Management

The Management of Houses in Multiple Occupation (England) Regulations 2006 place certain duties on the manager of an HMO.

The ‘manager’ includes the owner or lessee of a premises who receives (whether directly or through an agent or trustee) rents or other payments from occupiers.  Where those rents or other payments are received through another person such as an agent or trustee, that other person is also a manager.

The duties imposed on the manager include those:

• to provide information to occupiers, including the name, address and telephone number of the manager
• to take safety measures, including fire safety measures
• to maintain water supply and drainage
• to supply and maintain gas and electricity, including having the installations regularly inspected and obtaining certificates of the inspections
• to maintain common parts, fixtures, fittings and appliances
• to provide waste disposal facilities
• to maintain living accommodation

The Regulations also impose duties on the occupiers of an HMO to ensure that the manager can comply with the Regulations. For example, occupiers are under a duty to comply with reasonable instructions about fire safety etc.

The Regulations can be found at www.opsi.gov.uk/si/si2006/20060372.htm

NOTE: for houses converted solely into self contained flats (‘Section 257 HMOs’) the new Management Regulations do not yet apply.  The Housing (Management of Houses in Multiple Occupation) Regulations 1990 remain in force for this type of HMO.

HMO Licensing

As from 6th April 2006, HMOs of a ‘prescribed description’ are required by law to be licensed. These are HMOs of 3 or more storeys occupied by 5 or more people in two or more households.  ‘Storeys’ can include basements and loft conversions but not usually cellars or attics.

See www.opsi.gov.uk/si/si2006/20060371.htm for the regulations on prescribed description HMO's.

If you are a landlord of properties of the above description which were registered under Nottingham City Council’s HMO registration scheme, you need take no further action.  We should already have written to you advising that the property has either passported into the new licensing regime or is no longer licensable.

Who should apply for a licence?

Anyone can apply but they must nominate a single named person to be the licence holder.  This would often be the owner, but could also be a managing agent or anyone else provided that the licence holder is a ‘fit and proper person’ and has sufficient financial control over the property.

How do I apply for a licence?

Contact the HMO Team and ask for an application pack to be sent by post or e-mail.  You will need to complete and return the application form with the fee and some supporting documents such as proof of address.  You will also need to advise anyone else that has an interest in the property (eg co-owners, mortgage lenders) that you have made an application.

What is the fee?

£600. The licence would normally be issued for five years.

What happens next?

The Council will consider whether:

• the property is suitable for the number of persons requested
• the proposed licence holder and manager are ‘fit and proper persons’
• the arrangements for managing the property are satisfactory.

The Council will use the information you provide in the application and may also inspect the property to make its assessment.  It will then either refuse or grant a licence.  Licences will have certain standard conditions relating to the management of the property and may have other conditions requiring, for example, the installation of further wash hand basins or other amenities.

What if I disagree with the conditions?

Before issuing the licence we issue a draft licence that you can make representations to us about.  Once the licence has been issued, you have 28 days to appeal to a Residential Property Tribunal (RPT) See www.rpts.gov.uk for more information.

What if I don’t apply for a licence?

Landlords and agents who fail to apply for a licence may face fines of up to £20,000, a criminal record and potentially, rent repayment orders. Tenants will be able to apply to have their rent repaid if the landlord is convicted of failing to apply for a licence.

Where can I find further information about licensing?

www.propertylicence.gov.uk

HMO Registration

The Council has operated a local registration scheme for HMOs since 2001, using a different definition of HMO taken from earlier legislation.  This scheme should have been totally replaced by HMO licensing in April 2006 but for houses converted solely into self contained flats (‘Section 257 HMOs’) the new provisions for management and licensing do not yet apply.

As a consequence, any house converted into flats which was registered under the 2001 scheme is still registered under this scheme and will remain so until the Government issues further regulations.

If you are the landlord of a building converted into flats which was registered as an HMO, you need take no further action; the Council will advise you if and when the building is ‘passported’ into the licensing regime.

If you are the landlord of any other type of HMO (eg bedsits or a shared house) which was registered under Nottingham City Council’s HMO registration scheme, you need take no further action; we should already have written to you advising that the property has either passported into the new licensing regime or is no longer licensable.

If you own or manage a building converted into flats which is not registered as an HMO, contact the HMO team for further advice.