Landlord Advice UK Tenant Eviction Service For Landlords

Definition of HMO

The Housing Act 2004 provides a detailed definition of a House in Multiple Occupation (HMO), which is essential for landlords to understand. This guide outlines the criteria for an HMO, specific tests used to determine if a property qualifies as one, and the associated exemptions and council tax implications. The information applies exclusively to England.

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Definition of an HMO

An HMO is defined under Part 7 of the Housing Act 2004 [1]. For a building or part of a building to be classified as an HMO, it must fall into one of the following categories:

• A building or flat where more than one household shares a basic amenity, such as a bathroom, toilet, or cooking facilities (the Standard Test or the Self-Contained Flat Test).
• A building that has been converted and does not entirely comprise self-contained flats (the Converted Building Test).
• A building that is declared an HMO by the local authority.
• A converted block of flats where the conversion does not meet current building regulations, and fewer than two-thirds of the flats are owner-occupied (a Section 257 HMO).

Each of these tests is explained in detail below.

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The Standard Test

The Standard Test applies when:

• Occupants share one or more basic amenities (defined as toilets, personal washing facilities, and cooking facilities), or the accommodation lacks one or more of these amenities.
• The building is not entirely made up of self-contained flats (though it may include some).
• The property is occupied by at least three people forming more than one household.
• The building is the main residence for the occupants.
• Rent or some form of consideration is paid for at least one person’s occupation.

This test commonly applies to shared houses, purpose-built bedsit accommodation, and some hostels [2].

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The Self-Contained Flat Test

The Self-Contained Flat Test mirrors the criteria of the Standard Test but applies specifically to an individual flat within a building [3]. A flat is considered self-contained if:

• It is a separate set of premises.
• All three basic amenities are exclusively available to its occupants [4].

If both self-contained and non-self-contained units are present in the building, the Standard Test applies.

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The Converted Building Test

The Converted Building Test applies to buildings where:

• The property has been converted into living accommodation, with at least one unit created after the building’s original construction.
• The building contains at least one non-self-contained unit (though it may also include self-contained flats).
• The property is occupied by at least three people forming more than one household.
• The accommodation is the main or only residence of the occupants.
• Rent is payable for at least one person’s occupation.

This test is typical for properties such as houses converted into bedsits with shared bathrooms [5].

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HMO Declarations by Local Authorities

Local authorities can declare a property an HMO if it meets any of the tests above and the use by more than one household constitutes a significant use of the property [6].

The authority must serve notice of the declaration on relevant persons (excluding tenants) within seven days [8]. The declaration takes effect after 28 days unless an appeal is lodged with the First-tier Tribunal (Property Chamber). Appeals must be resolved before the notice is enforced [9]. Declarations can be revoked if the property no longer meets the HMO criteria.

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Section 257 HMOs

A Section 257 HMO applies to buildings converted entirely into self-contained flats if:

• The conversion does not meet the required Building Regulations 1991 or 2000 standards.
• Fewer than two-thirds of the flats are owner-occupied [10].

Owner-occupiers include those with leases over 21 years or freeholders, along with their household members.

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Definition of a Single Household

The Housing Act 2004 defines a single household as:

• A family, such as a couple (married, cohabiting, or same-sex partners) or related persons.
• An employer and certain domestic employees.
• A carer and the person receiving care.
• A foster parent and their foster child [11].

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Only or Main Residence Requirement

To qualify as an HMO, the property must serve as the occupants’ only or main residence. This includes:

• Residences for full-time students in further or higher education.
• Refuges for people affected by domestic violence.
• Accommodation for migrant or seasonal workers provided by employers.
• Properties housing asylum seekers under Section 95 of the Immigration and Asylum Act 1999 [12].

Hostels and night shelters providing temporary accommodation for homeless people may also qualify as HMOs if the property serves as the occupants’ only residence and rent is paid.

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Exemptions from HMO Regulations

Certain properties meeting HMO criteria are exempt from licensing and management regulations. These include:

• Properties managed by registered providers of social housing, co-operatives, local authorities, or other public bodies.
• Buildings regulated under other legislation, such as boarding schools, prisons, and care homes.
• Religious communities, except Section 257 HMOs.
• Student accommodation managed by educational institutions listed in the regulations.
• Properties occupied by the owner and up to two tenants or licensees (excluding Section 257 HMOs).
• Properties occupied by two unrelated individuals forming two separate households [13].

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HMO Definition for Council Tax Liability

The Council Tax (Liability for Owners) Regulations 1992 define an HMO differently for council tax purposes. Under these regulations:

• An HMO is a dwelling constructed or converted for occupation by multiple households.
• The property is occupied by two or more individuals, each with a separate tenancy or licence agreement.

Case law clarifies that joint tenants under a single tenancy agreement are not considered HMO occupants for council tax purposes, shifting the liability to the tenants rather than the landlord [14][15].

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Conclusion

Understanding the legal definition and requirements for HMOs is crucial for landlords to ensure compliance with regulations under the Housing Act 2004. Proper classification, licensing, and adherence to HMO rules can help landlords avoid penalties and maintain safe, regulated housing for tenants.

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[1] s.254 Housing Act 2004.
[2] s.254(2) Housing Act 2004.
[3] s.254(2) and (3) Housing Act 2004.
[4] s.254(8) Housing Act 2004.
[5] s.254(4) Housing Act 2004.
[6] s.260 Housing Act 2004.
[7] s.255 Housing Act 2004; Herefordshire Council v Rohde [2016] UKUT 39 (LC).
[8] s.255(4) Housing Act 2004.
[9] Tribunal Procedure (First-tier Tribunal) (Property Chamber) Rules 2013 SI 2013/1169; the First-tier Tribunal and Upper Tribunal (Chambers) (Amendment) Order 2013 SI 2013/1187.
[10] s.257 Housing Act 2004.
[11] s.258 Housing Act 2004.
[12] s.259 Housing Act 2004; reg 5 Licensing and Management of Houses in Multiple Occupation and Other Houses (Miscellaneous Provisions) (England) Regulations 2006 SI 2006/373.
[13] Sch. 14 Housing Act 2004, as amended.
[14] R (on the application of Goremsandu) v Harrow LBC [2010] EWHC 1873 (Admin).
[15] Shah v Croydon LBC [2013] EWHC 3657 (Admin).