New Rules on London Houses in Multiple Occupation

Are you a London landlord of a house in multiple occupation? You may so ‘no’ but the answer since August 2021 may be ‘yes’ although you may not realise it because the definition of a London Westminster house in multiple occupation has changed. Many London landlords have been so busy sorting out rent arrears and tenancy repairs that they have not appreciated the significance of the rule change for them. In this article Nollienne Alparaque, head of the landlord and tenant team at OTS Solicitors, takes a look at the new rules on London houses in multiple occupation.

UK Online and London Based Landlord and Tenant Solicitors 

For an initial consultation on how HMO regulations affect you as a landlord or tenant or for advice on any aspect of landlord and tenant law call the expert London landlord and tenant lawyers at OTS Solicitors  on 0203 959 9123 or contact us online.

House in multiple occupation definition

As London landlord and tenant solicitors who also work online with both landlords and tenants to solve their tenancy related queries our job would be a lot easier if there was a national definition of what constitutes a house in multiple occupation and whether the property required a HMO license or not.

We think life would be a lot easier for both landlords and tenants if there was a national approach taken to HMO licensing requirements. Landlords would clearly know if they needed a house in multiple occupation licence and tenants would better understand their rights as a tenant in a HMO. There is still no nationally used definition of a HMO property that requires a HMO licence. That is why it is easy for HMO landlords to be caught out and for tenants to not understand their rights with a HMO tenancy.

The official government definition of a house in multiple occupation or house share is:

‘A HMO is a property rented out by at least three people who are not from one household (for example a family) but share facilities like the bathroom and kitchen’.

The government  guidance on HMOs then gets confusing as it goes on to define what amounts to a large house in multiple occupation.

A ‘large house in multiple occupation’ is defined by the government  as a property where ALL the following conditions apply:

• The property is rented to five or more people who form more than one household and

• Some or all of the tenants share a toilet, bathroom or kitchen facilities and
• At least one tenant pays rent (or their employer pays the rent for the tenant).

The rules say:

• You must have a HMO licence to rent a large house in multiple occupation.
• You may need a HMO licence to rent out a HMO that is rented out by at least three people who are not from the same household but share facilities like the kitchen and bathroom.

If you own a HMO (that does not fall within the definition of a large HMO) you must check with the local authority where the property is located to check and see if you need a HMO licence to be able to let the property out.

Assuming that the local authority rules are the same across the country is not a sensible approach because local authorities take a different approach to the requirement for a house in multiple occupation licence.

Landlord and tenant solicitors say that some HMO landlords complain the situation is a lottery because the requirement to hold a HMO licence is entirely dependent on the location of a small HMO rather than the standard of the facilities and a landlord’s good track record. Furthermore, a landlord can buy a rental property in an area where they have checked that a HMO licence is not required only to find that the local authority then change the goal posts and require a HMO licence even though the property is relatively small, well maintained and does not meet the description of a large HMO.

Frankly, landlord and tenant solicitors have no logical answer when landlords question why they have to go to the expense of securing a HMO licence for a property but not for an identical property in an adjoining area. Likewise, there is no rationale behind why one set of HMO tenants are protected by HMO licensing regulations but the tenants in an adjoining area but in an identical small HMO are not.

The answer for both landlords and tenants are to check if a property does need a HMO licence as that way a landlord can avoid penalties for not securing one and a tenant has additional redress.

The HMO Westminster story

In August 2021 Westminster council changed their rules on whether a landlord had to have a HMO licence. Prior to August 2021 a licence was only required if a property met the definition of a large HMO. After August 2021 houses or apartments with three or more people from more than two households that share kitchen or bathroom facilities required a HMO license. The Westminster council then had a rethink and partially changed their new HMO licensing requirements.

In October 2021 Westminster council announced that it was revoking part of its earlier decision over the requirements for a HMO license. The revocation was effective from the 1 October 2021 and applies to section 257 houses in multiple occupation.

A section 257 house in multiple occupation is a property where a whole converted property consists of self-contained flats and the conversion work does not comply with building regulations and where less than two thirds of the flats are owner occupied.

If you are a landlord or tenant in Westminster, you may be confused as to where you stand and the legal position of whether your property is classed as a HMO and, if so, does it require a license. If a HMO licence is necessary but a landlord has not secured one then it is important to understand the ramifications for both landlord and tenant.

In Westminster, with private rental property at over forty per cent of all housing stock, even the October  2021 amended regulations bring far more property into the requirement for HMO licensing. Many existing landlords are not aware of the change, and then the further council amendment, in licensing requirements. Landlord and tenant solicitors say that ignorance of the change in the law is no defence if a landlord does not have a required HMO licence. If in doubt seek legal advice.

UK Online and London Based Landlord and Tenant Solicitors and HMO Lawyers

For advice HMO regulation and on any aspect of landlord and tenant law call the expert London landlord and tenant lawyers at OTS Solicitors  on 0203 959 9123 or contact us online.