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New HMO Regulations

Posted by Arthur Brown on May 29, 2018
| Blog
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So, your letting your property room by room; previously it had to be over three story; not anymore! Here is the low down on the extension to the mandatory licensing requirement under Section 55(3) of the Housing act 2004.

If you are letting your property to 5 or more people, please take note as there are heavy fines to pay if the rules are not being met. When we say 5 or more people that would not apply to a couple with three children; we mean 5 or more people from separate families. If you are doing so you will no need an HMO license to let the property by October 2018.

Alongside this rule, it is likely another rule will be introduced which involves a minimum bedroom size within HMOs. Rooms which do not meet the minimum size can not be let, if already licensed the rule will apply when you look to renew the license.

If these rules are not abided by the fines are unlimited and civil penalties are up to £30,000! Local authorities will allow a reasonable period for rectification, this can be up to 18 months prior to persecuting. It is unclear whether lenders will allow this time, it will be hard for some landlords to re-mortgage if the commercial value is impacted by being unable to let one or more rooms.

To check the criteria for a HMO please visit the below site: https://www.legislation.gov.uk/ukpga/2004/34/section/254

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