Any HMO that is occupied by five or more persons who form two or more separate households, and who share basic amenities such as a kitchen, bathroom or toilet, will require a licence.
The Government has issued Guidance for Local Authorities and landlords. Business owners, should make themselves familiar with the legislation that covers their business, and seek professional advice as required in order to comply with the law.
It is the landlord's responsibility to ensure that an application is made. Officers are happy to give advice and guidance to anyone wishing to discuss their circumstances. Please contact the Private Sector Housing Team on 0115 931 6060 for more information.
A landlord who fails to apply for a licence will be committing a criminal offence. Where HMOs are found which meet the criteria for licensing, but no application has been received, action shall be taken in line with the Council’s Enforcement Policy. Options include a criminal prosecution.
Multiple occupancy homes
Under the Housing Act 2004, if you let a property which is one of the following types it is a House in Multiple Occupation (HMO):
- An entire house or flat which is let to three or more tenants who form two or more households and who share a kitchen, bathroom or toilet (for a definition of household see the next subsection).
- A 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 who share kitchen, bathroom or toilet facilities.
- A converted house which contains one or more flats which are not wholly self contained (for example the flat does not contain within it a kitchen, bathroom and toilet) and which is occupied by three or more tenants who form two or more households.)
- 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.
In order to be an HMO, the property must be used as the tenant's only or main residence and it should be used solely or mainly to house tenants. Properties let to students and migrant workers will be treated as their only or main residence and the same will apply to properties which are used as domestic refuges.
What is a ‘household’ for the purposes of a HMO?
The following are 'households' for the purposes of the Housing Act 2004:
Members of the same family living together including:
- Couples
- Relatives, 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 their foster parent is treated as living in the same household as their foster parent.
- Any domestic staff are also included in the household if they are living rent-free in accommodation provided by the person for whom they are working.
- Therefore 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.
Amenities and Space Standards
The council’s requirements relating to room sizes and the number of kitchen and bathroom amenities within the HMO will vary depending on the number of individuals occupying the HMO.
The council currently specifies the standards that can be found on the DASH website.
When specifying the kitchen amenity requirements within the DASH guidance, the council would define the types of occupation of the HMO as follows:
HMOs where occupants live as a cohesive group
The Authority would class this as a shared-house-type HMO, where each occupant would have their own bedroom but they share the kitchen, dining facilities, bathroom, WC, living room and all parts of the house. All the tenants will have exclusive legal possession and have control of all parts of the house, including all bedrooms.
HMOs with more distinct units of accommodation and where occupants tend to live separately
The Authority would liken this a bedsit-type-house, where each bedroom typically contains individual cooking facilities, but alternatively there may be shared cooking facilities or a mixture of the two. Each bedsit or letting will be let to separate individuals who will live independently with little or no communal living between tenants. Each letting will have its own tenancy agreement and there will usually be a lock on each individual letting door.
Houses in multiple occupation - Licensing
The Housing Act 2004 came into force on 6 April 2006 and introduced the mandatory licensing of Houses in Multiple Occupation . So it is compulsory to licence larger, higher-risk HMOs.