HMOs

A property is an HMO if:

• there are at least three tenants in the property, who form: 

  • more than one household (in England and Wales), or

  • more than two families (in Scotland), and

• the tenants share a kitchen, bathroom, or toilet

What is a household?

In England and Wales, the Housing Act 2004 defines a household as members of the same family living together. This includes:

• couples who are married or otherwise living together

• relatives (including children, parents, grandparents, grandchildren, siblings, uncles, aunts, nephews, nieces, or cousins) living together. This includes half-relatives, step-children, and foster children

• domestic staff that live rent-free in the accommodation provided by the person for whom they are working (like live-in nannies or au-pairs)

What is a family?

The Housing (Scotland) Act 2006 defines a ‘family’ as including:

• married, unmarried, or in a civil partnership

• children, stepchildren, and foster children

relatives like parents, grandparents, grandchildren, brothers, sisters, uncles, aunts, nephews, and nieces (but not cousins)

Example of an HMO

If you’re renting a flat to three university students or friends, who each have their own room and share basic amenities (eg cooking facilities and a bathroom), they would generally form three separate households/families. Similarly, if you rent to a couple and another unconnected person, they could form households/families. In both cases, the property would be classified as an HMO.

What is a large HMO?

In England and Wales, the Housing Act 2004 defines what a large HMO is. An HMO is considered to be a large HMO if both of the following apply:

• at least five tenants live at the property, forming more than one household, and

• the tenants share a kitchen, bathroom, or toilet facilities

In Scotland, there is no differentiation between regular HMOs and large HMOs.

What are the landlord’s obligations when renting out an HMO?

In addition to their usual obligations as landlords, which vary across England, Wales, and Scotland, renting out an HMO requires additional responsibilities from the landlord. In particular, the landlord is responsible for:

• putting in place proper fire safety measures (including smoke alarms). In Scotland, this also includes providing fire extinguishers, fire blankets, and fire escape routes. For more information, read Fire safety in HMOs

• carrying out gas safety checks yearly and electricity checks every five years (or every three years in Scotland)

• ensuring that communal areas are clean and in good repair (however, in Scotland, this responsibility can be passed to the tenants in the tenancy agreement)

• any repairs to the communal areas of the property (eg sinks, baths, or toilets)

• any repairs to the structure of the house (ie walls, windows, and gutters)

• any repairs related to the supply of water, gas, and electricity (eg damaged gas pipes and broken heaters)

Licensing obligations

Some HMOs are subject to extra licensing obligations. Whether such obligations apply depends on where the property is located and the size of the HMO.

HMOs in England and Wales

When the property is a large HMO, the landlord must get a licence from the local council. 

Further requirements include conditions that the floor area used as bedrooms in HMOs must be over a certain size. Specifically, bedrooms used by:

• one person over 10 must not be smaller than 6.51 square metres

• two people over 10 must be at least 10.22 square metres

• under-10s cannot be smaller than 4.64 square metres 

Note that some councils may set higher standards for bedroom sizes.

Some councils also require other HMOs to be licensed, even if the property is smaller or rented to fewer people. When deciding whether to issue a licence, the council will check that the property meets an acceptable standard (eg whether the property is large enough for the occupants and is well managed). It may also consider whether the landlord is a 'fit and proper' person. For more information, read Selective licensing.

If you are a landlord and want to know whether your HMO needs a licence, you should check with your local council for their policies on HMOs, as there are large fines for non-compliance.

Licences usually last for five years, but some councils grant them for shorter periods.

HMOs in Scotland

In Scotland, landlords must have a licence for all HMOs. If you rent out an unlicensed HMO property, you could be fined up to £50,000. The local council issues HMO licences, and it will carry out several checks before doing so, including:

• that you’re ‘fit and proper’ to hold a licence (ie no criminal convictions for fraud or theft)

• that you manage the property properly (ie you carry out your responsibilities as a landlord and respect the tenants’ legal rights)

• that the property meets the HMO standards (eg the bedrooms must be of adequate size, the property should be secure, and adequate fire safety and security measures must be in place)

Licences usually last for three years, and they must be renewed before they expire.

What if I do not comply with licensing requirements?

In England and Wales, landlords who do not comply with licensing requirements can be subject to a fine and can be ordered to repay up to 12 months' rent. This is called a rent repayment order. In addition, if an HMO in Wales should be licensed but isn’t, a Section 173 Notice to repossess property won't be valid.

In Scotland, failing to comply with licensing requirements can result in a fine of up to £10,000. Your licence may also be revoked, and you could be ordered to fix any problems with the property.

Make sure to record your HMO tenancies in the appropriate Tenancy agreements. If you have any questions or concerns about HMOs, do not hesitate to Ask a lawyer.