Houses in Multiple Housing (HMOs) are rental properties where a number of people live together but are not related. For example:
If the property has three storeys and has at least 5 tenants, then this is considered a large HMO.
On 1st October 2018 landlords need to apply for a new license. This will apply to all properties with 5 or more occupants and is irrespective of the number of storeys in the property. Previously only properties with 3 or more storeys had to apply for a license.
This change will have a big impact on landlords, especially as new rules are also being published about room size and how many people can sleep in one room. The reason for the new regulation is to prevent overcrowding in rental properties.
Councils will be determining the cost of the license, so it's important to check with your local council. The cost of licenses across the UK ranges from £500 for a five-year license to about £1500.
The licensing reforms apply to all landlords with new and existing properties. Those with existing properties are being given some time to make changes to their property; you should ask your council for more details about this.
A license is required for each HMO that one landlord owns. More information can be found here – House in multiple occupation license.
All landlords must apply for their license by 30 September 2018, or they could face criminal prosecution and fines up to £30,000.
We support landlords with their property tax. If you would like any advice, please contact us by calling 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..
Haidee is our Personal Tax Director and is a fully qualified tax adviser, having achieved the ATT qualification in 2006. Tax efficiency being her main concern. Specialising in taxation, Haidee provides clients with advice on personal tax, PAYE services, VAT and social security. She also provides guidance to new start-up businesses.
Call us today on01623 490120
or email info@watsonk.co.uk
When you first start a business, your focus is usually on attracting customers, generating sales and building a successful company. Few business owners spend much time thinking about how or when they will eventually leave the business.
More blog posts