When Mandatory Licensing Applies – Rent Repayment Order

Is Your Shared House an HMO? When Mandatory Licensing Applies

Are you living in a shared house and wondering if it’s properly licensed? You’re not alone. Many tenants find themselves in similar situations, unsure about their rights and whether their living arrangement falls under specific regulations. The term you might have come across is “HMO,” or House in Multiple Occupation. But what does that really mean, and more importantly, when does it require a mandatory license?

This article aims to answer those questions. We’ll break down what an HMO is, when a mandatory license is required, and what steps you can take to ensure your living situation is safe and compliant. Understanding the rules surrounding HMOs can be confusing, but by the end of this post, you’ll have a clear picture of whether your shared home is likely to need one.

Understanding the Basics: What is an HMO?

It’s easy to get caught up in confusing legal terms, so let’s make it simple. A “House in Multiple Occupation” (HMO) isn’t just any house; it’s specifically a property where multiple individuals or households live, and where basic amenities are shared. These properties are often rented out by a landlord or management company.

But what does that mean in practice? It means that your house is probably an HMO if you’re sharing certain facilities with other people in the house (such as a kitchen or bathroom) and you don’t have your own self-contained living unit. It often means you are not all part of the same family unit, and rent your part of the property individually. It’s more than just a group of friends living together. It’s about the structure of the property and the way it is occupied.

Key Features of an HMO

Here are some common features of an HMO:

• Shared Facilities: The house contains shared amenities such as kitchens, bathrooms, and living areas that are used by multiple individuals who are not part of the same family.
• Multiple Tenants: Several individuals, couples or sometimes small family groups reside at the property, each with their own individual tenancy agreement with the landlord.
• Not a Family Home: It’s typically not a single-family home where the occupants are all related.

Common Examples of an HMO

Here are some common examples of an HMO you may be familiar with:

• Student Houses: Many student accommodations fall under the HMO definition, where students share a house or flat.
• Multi-Tenant Flats: A flat or apartment block where individual rooms are rented out to multiple people.
• Shared Houses: A standard house where several unrelated people rent rooms and share common areas.
• Hostels and Bedsits: Some hostels and properties converted into bedsits may be considered HMOs.

Understanding whether your living space is a House in Multiple Occupation is the first step. Let’s move on to the crucial question: When does this type of housing arrangement require a mandatory license?

The Crucial Question: When is an HMO License Required?

So, you now have an idea of what an HMO is, but the vital question remains: when does an HMO actually need a mandatory license? This is where it can get a bit more specific, so let’s break it down.

Number of Tenants as a Trigger

The first key factor is the number of people living in the property. Nationally, a mandatory HMO license is generally required when a property is occupied by five or more people. It is important to remember that this is the national threshold for mandatory licensing, and some local authorities have different rules for which properties need a license, so please check your local council website.

The “Two or More Households” Criteria

It’s not just about the number of people; it’s also about how they’re grouped. The property must be occupied by two or more separate “households” for the purpose of HMO licensing. What exactly is a “household” in this context?

• A household is generally defined as:
  • A single person
  • A couple (married or living together)
  • A family group where people are related.

Therefore, a group of 5 friends who aren’t related is considered five households. However, a family of five would only be considered a single household. This distinction is essential in determining if a property is a licensable HMO.

Specific Criteria and Standards

Beyond the number of tenants and households, other factors can contribute to whether an HMO needs a license. These typically include:

• Layout of the property: Is the building specially converted for HMO purposes, or are there many self contained units in the building? The layout of the property will often be a key factor in if the property needs a licence.
• Shared Facilities: The extent to which there are shared facilities (kitchens, bathrooms). If a property does not have a shared bathroom, kitchen or living area it is unlikely to be a licensable HMO.
• Management and Upkeep: Who is responsible for the upkeep of the property and dealing with any maintenance issues? A responsible and responsive landlord or management company can contribute to a safe and well maintained property, which will affect the need for licensing.

It’s crucial to understand that each local authority can have its own specific standards, so it is essential to check the policy of your local council. These standards can cover various aspects like fire safety, room sizes, and amenity standards.

Understanding a “Licensable HMO”

A “licensable HMO” is simply an HMO that meets the criteria for requiring a mandatory license. This means the property meets or exceeds the minimum requirements for the number of occupants, households, and meets specific standards for a property to be legally considered a licensable HMO. This can be confusing at first, but here are a few examples to illustrate:

• Example 1 (Needs a License): A five-bedroom house with five unrelated individuals who each rent a room and share a kitchen, bathrooms, and living area. This property is likely to require a mandatory license.
• Example 2 (Likely Doesn’t Need a License): A three bedroom house with three friends who each rent a room and share a kitchen, bathrooms, and living area. This property is unlikely to require a mandatory licence, unless specified by your local council.
• Example 3 (Needs a License) : A large property is converted to 8 self contained units. The property has a communal hallway, garden, and bins, making the whole building a licensable HMO.

Checking Your Specific Situation: A Practical Guide

Now that you understand the general rules, it’s essential to understand that HMO regulations can vary significantly depending on your local area. This means the specifics of when an HMO needs a license can change from council to council, so it’s essential that you check your local area’s specific regulations.

Location-Specific Rules

HMO regulations are not one-size-fits-all. Each local council has the authority to implement specific rules that may go beyond national requirements. For example, some councils may have:

• Lower tenant thresholds: They might require mandatory licensing for HMOs with fewer than five tenants.
• Additional standards: They may have stricter standards regarding fire safety, room sizes, or other property conditions.
• Specific areas: They might have different rules for certain areas within the city or district.

This is why it’s so important to check the specific HMO licensing policy for your local area.

How to Find Your Local Rules

Finding the specific HMO rules for your area might seem daunting, but it’s quite straightforward when you know where to look. Here’s a simple step-by-step guide:

1. Identify your Local Council: Use Google or another search engine to search for “[Your City/County Name] Council” or “[Your Postcode] Council.” For example, search “Manchester Council,” or “M1 Postcode Council.”
2. Navigate to the Housing Section: Once you’re on your local council website, look for a section related to “Housing,” “Private Rented Sector,” “Landlord Licensing,” or “HMO Licensing.” Council websites vary, so you may need to explore a bit. Look for categories that contain housing information.
3. Search for HMO Licensing Policy: Once you have located the relevant housing section on the website, use the site’s search functionality to search for “HMO licensing” or “House in Multiple Occupation,” or “HMO regulations,” or “Private Rented Sector licensing. Often, there will be a specific page explaining their HMO licensing requirements.
4. Look for Licensing Details: On the relevant page, you should find information detailing:
   • The council’s specific definition of an HMO for licensing purposes
   • The criteria for mandatory licensing
   • Any specific standards or requirements that the council has set.
   • Contact details for the council licensing department
5. Download Any Relevant Documentation: Many councils will provide a downloadable document, or a link to relevant legislation or guidance, such as a local ‘licensing policy’ or specific guidance on HMO licensing.
6. Contact Your Local Council: If you are still unsure, or cannot find the information, don’t be afraid to contact the council licensing department directly for further guidance. This may be via email, phone or live web chat.

Example of a Local Council’s HMO Definition

To make this clearer, let’s look at an example from the Manchester City Council website (Please note that council websites do change so the link might not always take you directly to the correct page) :

You can search for the relevant information for Manchester on the Manchester City Council website, by clicking on this link: https://www.manchester.gov.uk/info/500236/private_rented_housing/8079/licensing_of_houses_in_multiple_occupation_hmos

This page explains how a property is classified as an HMO in Manchester and what the specific requirements are. It is important to note that this page provides local advice and is different to National guidance.

Note: Please remember to replace “Manchester City Council” with the details for your own local council.

Council Licensing Contact Details

Here are the typical ways to find contact details for your local council’s licensing department:

1. Look on the council website: Go to the “Housing” or “Private Rented Sector” section and search for “contact us,” or “licensing team,” or “HMO team,” or “contact the housing team.”
2. Use Google: Search ” [council name] HMO licensing contact” to see if you can find direct details.
3. Look for a phone number or contact form to get further information.

By using this practical approach, you should be able to determine the specific rules that apply in your local area.

Why Does Licensing Matter? (Addressing the Risks)

Now that you know how to check if your house is an HMO and needs a license, it’s important to understand why this whole topic is so important in the first place. Living in a property that requires an HMO license but doesn’t have one can expose you to serious risks and deprive you of crucial protections. Let’s explore why this matters.

Risks of Living in an Unlicensed HMO

Living in an unlicensed HMO isn’t just a technicality—it can have real-world consequences for your safety and well-being. Here are some of the potential risks:

• Increased Fire Risks: Unlicensed HMOs are less likely to have adequate fire safety measures in place, such as working smoke detectors, fire-resistant doors, and proper escape routes. This puts you at greater risk in case of a fire.
• Poor Property Maintenance and Repair: Landlords of unlicensed HMOs often neglect their maintenance responsibilities, leading to disrepair, dampness, infestations, or other hazards. You may find yourself living in unsafe or unhealthy conditions.
• Lack of Legal Protections: Without proper licensing, tenants in an HMO are often more vulnerable to poor management practices, unfair treatment, and inadequate living standards. You may find it more difficult to enforce your rights.
• Overcrowding: Unlicensed HMOs might be overcrowded, leading to uncomfortable living conditions and potentially hazardous situations. There might not be enough space for all tenants, or not enough bathrooms or cooking facilities.
• Inadequate Facilities: Unlicensed HMOs are more likely to have inadequate facilities such as kitchens, bathrooms or heating systems, which can affect your daily quality of life.

Landlord Responsibilities and the Consequences of Non-Compliance

It’s the landlord’s responsibility to ensure that their HMO property is properly licensed, compliant, safe, and well-managed. Failing to do so is not only illegal, but it puts tenants at risk and can have serious consequences for the landlord including:

• Heavy Fines: Landlords can be fined very heavily by local authorities for operating an unlicensed HMO. This is often a very large fine and can affect their livelihood.
• Prosecution: In some serious cases, landlords can face prosecution and criminal charges.
• Reputational Damage: If a landlord is found to be operating an unlicensed HMO, they are likely to develop a bad reputation, meaning tenants are less likely to rent from them.
• Inability to Evict Tenants: If an HMO is unlicensed, a landlord can find it difficult to evict tenants, even if they have breached a tenancy agreement.
• Rent Repayment Orders: Tenants may be entitled to claim back rent from the landlord if the property was unlicensed when they were living there.

It’s crucial that landlords understand their responsibilities, and tenants understand the potential repercussions of not being compliant.

Tenant Rights in an HMO

Tenants in an HMO have specific rights that are important to understand:

• Right to Safe and Well-Maintained Living Conditions: You have a right to a property that is safe, habitable, and properly maintained.
• Right to Information: You have a right to know if your property should be licensed and if your landlord is compliant.
• Right to Report an Unlicensed Property: You have the right to report your landlord if your property is not licensed.
• Right to Seek Compensation: If you have been living in an unlicensed property, you may be entitled to seek a rent repayment order to get rent back from the landlord.

Understanding your rights and being vigilant about licensing issues are crucial steps to protecting yourself. If you suspect your property is an unlicensed HMO, you should take action to make sure your living situation is safe and legal.

What To Do If You Suspect an Unlicensed HMO (Actionable Advice)

If you suspect you’re living in an HMO that requires a mandatory license but doesn’t have one, it’s important to know what steps you can take to address the issue. This is about your safety, your rights, and ensuring your landlord is fulfilling their obligations. Here’s a step-by-step guide.

Initial Steps: Start by Communicating with Your Landlord

Before taking any formal action, it’s always best to start by communicating directly with your landlord. This may not always be possible, but it’s important to have documented proof that you have tried to engage with them.

1. Express Your Concerns: Politely contact your landlord, in writing if possible (email or letter), and state that you believe your property may be an HMO that needs a mandatory license.
2. Ask for Confirmation: Ask your landlord to confirm whether the property is properly licensed.
3. Give Them Time to Respond: Allow a reasonable timeframe for your landlord to respond to your concerns and to provide documentation if required.
4. Keep Records: Keep records of all conversations, emails, or letters that you have sent to your landlord, along with dates and times. This evidence could be beneficial if you need to take the matter further.

What To Do If Your Landlord Doesn’t Respond, or is Uncooperative

If your landlord doesn’t respond to your initial communications, or is uncooperative and refuses to engage, or denies that a mandatory license is needed, or they do not provide evidence of licensing you may need to take further action. Here’s what to do:

1. Check the HMO License Yourself: Check if your property is licensed on your local council’s website. Most councils have an online public register of licensed HMOs. You can search for your address and see if your property is listed.
2. Report to Your Local Authority: If you confirm that your property is not licensed, you should report it to your local council.
   • Find the Correct Department: Contact your local council’s housing department or their HMO licensing team.
   • Provide Details: Provide as much detail as possible including your address, landlord’s contact details, and why you suspect an unlicensed HMO. Also give them any evidence or paperwork that you have already collated.
   • Follow Their Procedure: Follow the correct reporting procedure for your local council.
3. Contact Relevant Housing Charities: If you are unsure about what steps to take, or want some advice on how to move forward, contact relevant housing charities who can help to give free advice.
   • Shelter – provides free housing advice via their helpline, email or webchat.
   • Citizens Advice – can provide free and impartial advice on housing and other legal matters
   • Other local housing charities – there may be local charities in your area that are better suited to help you, so it’s worthwhile researching local charities.
4. Be Prepared to Take Further Action: Your local council will then investigate, and can take action against the landlord. They might choose to send out an enforcement notice, which means the landlord is compelled to apply for a licence within a certain time period. Depending on the seriousness of the issue, your local council can prosecute the landlord.

Contacting Your Local Authority

Here’s a step-by-step guide on how to contact your local authority for advice or to report an unlicensed HMO:

1. Visit the Council Website: Go to your local council’s website.
2. Locate the Housing Section: Find the section about housing, private rented sector, or HMO licensing, as we mentioned before.
3. Search for Contact Information: Look for a phone number, email address, or online contact form for the relevant department. This will often be called ‘the licensing team,’ ‘housing standards team’ or ‘HMO team’.
4. Clearly Explain Your Issue: Provide all the key details of your situation when contacting them.

Remember, it’s essential to be proactive if you suspect your living situation is unsafe or illegal. By following these steps, you can protect yourself and take action to ensure your living situation is compliant.

Resources for More Information (Provide Support)

Navigating the world of HMO licensing can be complex, and it’s understandable if you still have questions. To help you on your journey, we’ve compiled a list of trustworthy resources that offer further information, advice, and support.

Government Resources

Official government websites provide a wealth of information on housing law and HMO licensing. Here are a few key pages:

• Gov.uk – Houses in Multiple Occupation (HMO): This is a great starting point to understand the basics of HMOs, licensing, and standards. https://www.gov.uk/house-in-multiple-occupation-licence
• Gov.uk – Renting out a property: This provides guidance on the legislation for renting out property. https://www.gov.uk/renting-out-a-property

Reputable Tenant Advice Organizations and Housing Charities

These organizations provide free and impartial advice, support, and guidance for tenants across the UK:

• Shelter: Provides advice on a wide range of housing issues, including HMOs. You can contact their helpline, use their online web chat, or view their website. https://www.shelter.org.uk/
• Citizens Advice: Provides free and independent advice on many legal matters including housing. https://www.citizensadvice.org.uk/
• Your Local Housing Charity: There may be additional local housing charities in your area that are better suited to advise you.

Your Local Council Website

As we highlighted earlier, local councils have their own specific rules and regulations around HMO licensing. You should visit your local council’s website to get specific information that is related to your local area, such as:

• HMO Licensing Policy: This will detail the specific criteria, fees, and enforcement approaches your local council takes.
• Online Register of Licensed HMOs: Many councils provide a register of all licensed HMO properties in the area. This can help you check if your property is listed.
• Contact Details: This will give you the contact details for the relevant team who can help you.

Make sure to search for “[Your City/County Name] Council” and navigate to their housing section for all the relevant information.

Still Unsure? Need Further Help?

If you are still unsure about your specific living situation or have further concerns, it’s best to seek advice. Don’t hesitate to contact the organizations listed above, or your local council’s licensing team. They are there to provide you with guidance and support.

If you suspect your property needs a licence but doesn’t have one, it’s important to take action to ensure you are living in a safe, legally compliant, and properly maintained property.

Conclusion (Summarize & Empower)

We’ve covered a lot of ground in this guide, but now you should have a much clearer idea of what an HMO is, when mandatory licensing applies, and what your rights are. Here’s a quick recap of the critical aspects of mandatory HMO licensing:

Key Points to Remember

• Definition of an HMO: An HMO is a property where multiple households live and share facilities, rented out by a landlord or management company.
• Mandatory Licensing Thresholds: Generally, a mandatory HMO license is required for properties with 5 or more tenants forming two or more households, but this can vary depending on your local council.
• Location-Specific Rules: HMO regulations can vary significantly depending on where you live, so it’s vital to check your local council’s website for specific rules and guidance.
• Risks of Unlicensed HMOs: Living in an unlicensed HMO can expose you to increased risks related to safety, property maintenance, and lack of legal protections.
• Your Rights as a Tenant: As a tenant, you have a right to live in a safe, legally compliant, and well-maintained property. You also have the right to take action if you think the property should have a licence.
• Resources Available: There are several trustworthy resources that provide free advice and support about HMOs.

Take Action and Be Proactive

Now that you’re equipped with this knowledge, it’s important to take the next step. Don’t wait for something to go wrong before you check the licensing status of your property. Here are some actions you can take today:

• Check Your Property: If you think you might be living in an HMO, use the guidance given in this article to see if a license is required.
• Check Your Landlord: Contact your landlord for clarification on the license if required.
• Report if Needed: If necessary, you have the right to contact your local council or relevant housing charities if your landlord is not being compliant.
• Seek Help: If you are still unsure about your living situation or your rights, it’s vital to seek further advice as soon as possible.

Your Empowerment Journey

Remember, you are not powerless in this situation. You have the right to live in a safe, legal, and compliant property. By understanding the rules around HMO licensing and taking proactive steps, you can ensure that your rights are protected, and your landlord is fulfilling their responsibilities. You have the knowledge and resources to make informed decisions. We hope you find this information useful, and wish you all the best in your housing journey.