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Licensing Arrangements for Houses in Multiple Occupation

The 2004 Housing Act introduces the licensing of Houses in Multiple Occupation (HMOs). This includes properties like bedsits and shared houses. From 6 April 2006 it is compulsory to license larger, higher-risk HMOs.

Why is there a need for properties to be licensed?

Larger HMOs, such as bedsits and shared houses, often have physical and management standards that are lower than other privately rented properties. The people living in HMOs are amongst the most vulnerable and disadvantaged members of society. As HMOs represent the only housing option for many such people, the government recognises that it is vital that they are properly regulated.

Licensing is intended to make sure that -

- The landlords, managers or agents of HMOs are "fit and proper" (suitable and capable) people.

-The standards of tenancy management and tenancy relations are satisfactory.

-The standards of property management are satisfactory.

-Each HMO is suitable for occupation by the number of people allowed to live there under the licence, and

-High risk HMOs can be identified and targeted for Improvement.  

What is an HMO?

A property will be an HMO if it is one of the following -

-A shared house lived in by people who belong to more than
one family and who share one or more facilities

-A house in bedsits lived in by people who belong to more
than one family and who share one or more facilities

- Individual flats lived in by people who belong to more than
one family and who share one or more facilities, and

-A building of self-contained flats that do not meet 1991
Building Regulation standards

Do all HMO's have to be licensed?

Compulsory (required by law) licensing of HMO's for properties that:-

-Require tenants to share amenities such as bathrooms, toilets and cooking facilities; or

-have self contained flats which do not meet the requirements in the Building Regulations 1991; and

-are three or more storeys high including basements and attics (also a shop or office with living accommodation above or below the business);

-are occupied by five or more people; and

-are occupied by people living in two or more single households (people who are not usually related to each other).

To find out more download this document Houses in multiple occupation...your questions answered

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