The Housing Act 2004 has brought in important changes on licensing of HMO's in England and Wales. A HMO is defined as:

• An entire house of flat which is let to 3 or more tenants who form 2 or more households and who share a kitchen, bathroom or toilet.


• A house that has been entirely converted into bedsits or other non-self-contained accommodation and which is let to 3 or more tenants who form 2 or more households and who share a kitchen, bathroom or toilet.


• A converted house which contains one of more flats which are not wholly self-contained (meaning the flat does not contain within it a kitchen, bathroom or toilet) and which is occupied by 3 or more tenants who form 2 or more households.


• A building that 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.

The licensing requirements came into force on 6th April 2006 and there was a three month "period of grace" for landlords of HMO's to come forward and apply for a licence. There are three types of licensing arrangements:

Mandatory licensing relates to HMO's that contain 3 or more storeys AND which are occupied by 5 or more persons forming 2 or more households. Such properties must be licensed. In deciding how many storeys a property has, basements and attics are counted if they have been converted into use for the residents in the HMO. If you are a resident landlord, the accommodation occupied by you or your family is counted, as are any other parts of the property which are self-contained.

Additional licensing can be introduced by local authorities for other HMO's that do not meet the above conditions for mandatory licensing. Many local authority's have had HMO registration schemes for some years and if your property has been registered, we would advise that you contact the local authority to see if you need a licence. Local authorities must consult with landlords prior to bringing in such licensing and publicise when it comes into force.

Selective licensing can be brought in areas of low housing demand or areas where there is significant anti-social behaviour. Any property can be licensed under these provisions, not just HMO's.

The onus is on you as the landlord to apply for the licence so if you are in doubt, contact the local authority as a matter of urgency.

If you own more than one HMO, you must apply for a licence for each property. Guidance from the government states that a licence will normally last for up to five years. You will have to pay a fee for the licence.

In order to grant a licence, the local authority needs to be satisfied that the licence holder is a "fit and proper" person, that it is appropriate for the licence holder to be granted the licence and that proper management standards are being applied at the property. For example, that the property contains adequate and sufficient facilities for those occupying it. In deciding if you or your manager are a "fit and proper" person to hold a licence, the local authority will ask for details about any convictions you may have and also look at whether you have any judgements against you under landlord and tenant law.

If you currently have a HMO and want to convert the property back into the use of a single household, you will need to seek planning permission as the property will be subject to a "change of use".

If you own a HMO and need to evict a tenant, you will need to show proof to the court that the property is licensed.

These are new rules and therefore, if you are in doubt about what you should do or what your responsibilities are, contact us for further advice.