HMOs that require licences

1. HMOs that require
licenses

2. Mandatory licensing of a HMO
The 5-3-2 rule
The property must have a license if…
• 5 or more tenants and
• 3 or more storeys and;
• 2 or more households
• Building comprising only self-contained flats are exempt from
mandatory licensing
• A combination of self-contained and non self-contained accommodation
will count as if all are non self-contained

3. Additional licensing
• Power for local authority to impose licensing of all HMO’s (not just those
that meet the mandatory 5-3-2 rule)
• May be in a designated area, or the whole borough
• Available if significant proportion of HMOs are poorly managed an
causing problems for residents (S56 Housing Act ‘04)
• Requires 10 week consultation period (and may require approval from
Secretary of State)

4. How to obtain a license
• Submit application
• Pay a fee – this will vary for each local authority
• 5 years – maximum amount of time that a license will last for
• License applies to the specified property in the application – it is not
transferable
• Suitability of property – the local authority may stipulate what
amenities such as bathroom/kitchens need to be provided

5. How to obtain a license
• Suitability of persons and management arrangements – local authority
decides if landlord is a ‘fit and proper’ person
• Mandatory conditions are set (such as requirement for gas cert,
tenancy agreement) and discretionary conditions (such as certain
repairs must be done, or landlord to attend training course)

6. Offences and enforcement
Criminal offence to be a person having control of or managing a licensable
HMO without a license. Local authority may prosecute or choose to apply
civil penalty of up to £30,000’
Unable to use S21
Local authority or occupier can apply for a rent Repayment Order (up to 12
months rent repaid)