A HMO is a house or flat that is lived in by two or more individuals who together are not a single household. Furthermore, they share one or more basic amenities, such as toilets or a kitchen or living room. HMO status also applies to a building of self-contained flats that is not converted to certain standards. These HMO requirements are set by the 1991 Building Regulations, and the other HMO requirements set out in this article.
COMPLIANCE WITH HMO REQUIREMENTS
The topics covered in the compliance checklist ring true for HMOs as well.The Complete Compliance Checklist That Landlords Need To Know
Additional requirements for HMOs compared to the standard residential rental compliance checklist are as follows:
Fireproof Doors
The purpose of fire doors is to contain the spread of fire and smoke in a house. Fire doors should comply with the 30-minute fire resistance criteria and signage. Furthermore, all fire doors should be self-closing to ensure they are always closed when not in use.
Signs & Notices
All notices need to be clearly marked, identifying an exit. The size must be 100mm x 500mm and placed at each landing level and above the final exit door.
Emergency Lighting
The emergency lighting lights up exit ways in case of an emergency. Emergency lighting is required on each floor and outside and should provide no less than 3 hours of duration.
Firefighting Equipment & Facilities
It’s a requirement to provide firefighting equipment in an HMO. The number and location of all fire extinguishers will depend on the size and layout of the property. Key necessities are a fire extinguisher in the kitchen area and a fire blanket in each room used for cooking.
HMOS REQUIRMENTS FOR FIRE RISK ASSESSMENTS
Yes, HMOs need a fire risk assessment. A fire risk assessment helps put in place precautions and general measures to ensure safety. It means that either the landlord or your managing agent needs to complete a fire assessment and apply the recommendations.
MANDATORY LICENSING
HMO licencing is a standard requirement in the UK compared to single-family rentals. Some HMOs are subject to mandatory licencing, which needs to be in place to enable a tenancy to proceed. An HMO is subject to a mandatory licence if all of the following apply:
1. The building or part of the building is classified as an HMO.
2. It is occupied by five or more people who form two or more households. They are sharing one or more basic amenities. You have let out your property to five or more people who form two or more households. You must have obtained a licence or risk prosecution and a significant penalty.
ADDITIONAL LICENSING
Over and above the mandatory HMO licencing mentioned above. Local authorities have the ability to introduce additional licencing for HMO properties. Furthermore, we are able to set different criteria for mandatory licencing as well. Typically, the criteria will be stringent and will differ from one local authority to another. It is the owner’s responsibility to apply for any required HMO licence. For further information on how to comply with the HMO legislation, Please read the rules detailed in the Housing Act 2004—Part 2 and the Management of HMOs (England Regulations 2006).
HMO MINIMUM ROOM SIZES REQUIREMENTS
As of October 1, 2018, councils can set minimum bedroom size standards. Furthermore, introduce limits on how many people can live in each bedroom of a licenced HMO. Councils will be able to use national minimum standards. Alternatively, apply even tougher requirements to address specific local needs as they see fit.
The government has set minimum bedroom sizes for HMOs in the UK. The minimum sleeping room floor area sizes are:
- 6.51 m² for one person over 10 years of age
- 10.22 m² for two people over 10 years
- 4.64 m² for one child under the age of 10 years
Rooms with less than 4.64 metres squared are not considered sleeping accommodations. Any licenced property must meet the national minimum standard or the standards imposed by your local council.
HMO REQUIREMENTS FOR WASTE STORAGE AND DISPOSAL
Landlords need to provide adequate waste storage facilities in line with their local authority’s rules. If they fail to do so they could face a fine.
PENALTIES FOR NON-COMPLIANCE WITH THE HMO REGULATIONS
There are significant penalties for breaching regulations. This can be regarding either the management or occupancy conditions of the licence. Also, if you’re operating without an HMO licence,
a. The financial penalties for operating without a licence are up to £20,000.
b. Miss management of the HMO has an unlimited fine cap.
Other penalties could include rent repayment orders brought by tenants or the local authority. Also, a ban on serving a valid Section 21 notice to seek possession of the property. For further information and to clarify if your property requires a licence or planning consent, please contact your local housing authority.
HMO SUMMARY
HMOs provide value-added investment characteristics that are appealing to investors. For reference, they commonly provide higher yields and reduced voids compared to family rentals. They reduce voids as a result of numerous tenants under one roof, spreading the risk instead of depending on one tenant. Although these perks come with regulations that we have spelled out in this article.
