Landlord Advice UK Tenant Eviction Service For Landlords

HMO Licensing

The Housing Act 2004 introduced mandatory licensing for Houses in Multiple Occupation (HMOs), setting clear definitions, management standards, and licensing requirements. These regulations ensure that HMOs meet safety and management criteria to protect tenants and maintain property standards. The rules surrounding mandatory licensing were significantly updated on 1 October 2018 [1].

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Mandatory Licensing Requirements

A property is subject to mandatory HMO licensing if it meets all the following criteria:

• It is occupied by five or more persons.
• It is occupied by individuals living in two or more separate households.
• It meets one of the following tests:
  • The Standard Test under Section 254(2) of the Housing Act 2004.
  • The Self-Contained Flat Test under Section 254(3) of the Act (excluding purpose-built flats in blocks comprising three or more self-contained flats).
  • The Converted Building Test under Section 254(4) of the Act.

If a building or part of a building does not meet these criteria but has been subject to an HMO declaration, it will not require a licence.

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Temporary Exemption from Licensing

Landlords who control an HMO that should be licensed but is not can apply for a Temporary Exemption Notice (TEN) if they intend to take steps to remove the property from licensable criteria [2]. Once a temporary exemption notice is issued, the property is no longer required to be licensed.

Key Features of Temporary Exemption Notices

• Duration: A temporary exemption notice is valid for three months from the date it is issued.
• Extension: If further notification is provided, a second temporary exemption notice may be issued, extending the exemption for an additional three months. However, no more than two notices can be issued for the same property.

If the local authority refuses to serve a temporary exemption notice, it must provide the affected party with a written explanation of the decision, along with reasons, without delay. The decision can be appealed to the First-tier Tribunal (Property Chamber) [3].

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Key Changes in 2018

The Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 expanded the scope of mandatory HMO licensing. Before 1 October 2018, mandatory licensing applied only to properties with three or more storeys. The updated rules removed the storey requirement, significantly increasing the number of HMOs that require licensing [1].

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Compliance and Next Steps for Landlords

Landlords of HMOs must ensure compliance with the Housing Act 2004 to avoid penalties, fines, or legal action. If a property meets the mandatory licensing criteria:

• Apply for a Licence: Submit an HMO licence application to your local authority, including all required documentation and fees.
• Consider Exemptions: If you plan to change the property’s use to remove it from licensable criteria, apply for a temporary exemption notice promptly.
• Stay Updated: Monitor changes to licensing laws and local authority requirements to ensure ongoing compliance.

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Key Takeaways

• Mandatory Licensing: Applies to HMOs occupied by five or more people from two or more households, meeting specific tests under the Housing Act 2004.
• Temporary Exemption: Provides up to six months for landlords to address licensing requirements or reconfigure properties.
• Appeals: Landlords have the right to appeal local authority decisions regarding temporary exemptions to the First-tier Tribunal.

Understanding these requirements is essential for landlords to operate HMOs legally and responsibly while avoiding penalties for non-compliance.

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[1] The Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018.
[2] s.62 Housing Act 2004.
[3] 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.