Houses in Multiple Housing (HMOs) are rental properties where a number of people live together but are not related. For example:
- at 3 tenants live there, forming more than 1 household
- you share a toilet, bathroom or kitchen facilities with other tenants
If the property has three storeys and has at least 5 tenants, then this is considered a large HMO.
Changes to Property Licensing for HMOs
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.
How much is the license?
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