It's no longer breaking news that there will be some changes to landlord licensing scheme rules in the United Kingdom. These laws are mandatory for all landlords.
The Houses in Multiple Occupation rules (HMO rules) were designed to bring mandatory licensing to all multi-occupied properties where there are over five people, forming two or more separate households. In summary, the five or more people in question that who are not in any way related. In the past, the scheme was previously restricted to properties that had three-story structures.
This shouldn’t in any way be misinterpreted, and it is also important to stat that government has excluded self-contains that are multi-occupied. I’m talking about self-contains that are within purpose – building blocks that contain three or more self-contained flats. The self – contained flats are not in any way required to own a license under the mandatory HMO licensing scheme, even though the flat could not be included within an additional licensing scheme. It doesn’t really matter if these flats are occupied by five or more people.
Before going further, one has to understand the main changes that are contained in these new rules. Compared to how it was in 2004.
The new changes made to the rules.
• A change in the definition of what an HMO is under the Housing Act 2004 that is meant for licensing purposes. Which stated then that HMO will be any property that is occupied by five or more people, that forms two or more different households. Now, the new definition states that a property that is occupied by five or more people, forming two or more separate households, it also comprises of three-story structure or more.
• The continuum of validity until your license expires (Normally, the expiry date is 5 years from the date of issue), but this only applies to those who already have the HMO license that falls under the current definition.
• An exception that excludes if the property falls within a purpose – built block of flats which comprises of over 3 units.
• You will need to apply for a license via the local council if you currently let an HMO which in the past didn’t require a license but will do now that the law has come into effect.
• The regulation 2 under these rules introduces a minimum room standard meant for those properties that fall within the scope of mandatory licensing.
The Expectancy of the rules.
The new HMO rules are expected to bring over 160 000 to 180 000 properties within its scope of licensing, this is the first time such will be happening. The deadline for all the application was the 1st of October, 2018. That means you needed to have submitted the Application about two months ago.
What’s the cost?
When it comes to licensing, you will need to pay a separate application fee for each property, referring to the properties that need licensing. It usually varies from a few hundred to a few thousand pounds.
The Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 SI 2018/221 & The Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licenses) (England) Regulations 2018 SI 2018/616 can be read on Gov.uk.
Comments