11. Properties proposed to be included in the additional HMO licensing scheme
The following types of rented properties will be included within the proposed scheme:
- Houses and flats
- A house occupied by three or four persons forming more than one household who share a basic amenity, that is sharing bathroom, toilet or cooking facilities.
- A flat occupied by three or four persons forming more than one household who share a basic amenity located within the flat, that is sharing a bathroom or WC or cooking facilities.
- A building that has been converted into flats but not all the flats are fully self-contained flats. There may not necessarily be sharing of all amenities, but at least some sharing of bathroom, WC or kitchen facilities.
- Section 257 HMOs:
- Converted block of flats, either the whole building or part of a building, where the following apply:
- The building or part of it (including those with commercial premises within the overall building and including common parts of buildings) has been converted into self-contained flats; and
- The conversion into self-contained flats did not (and still does not) meet the Building Regulations 1991 (or later); and
- Less than two-thirds of the flats are owner-occupied.
Individual flats in converted properties will be considered as owner-occupied if they are occupied by:
- Someone who has a lease of the flat which has been granted for a term of more than 21 years, or
- Someone who has a freehold interest or estate in the converted block of flats.
Apart from the exemptions and exclusions listed below, the proposed scheme will include all rented houses and flats with three or four persons in two or more households where there is sharing of bathroom and/or WC and/or cooking facilities.
For section 257 HMOs the additional licensing scheme will cover the external parts of a building including land associated with it such as gardens or yards, and communal areas such as hallways and landings. In these cases, it would be for the freehold owner to obtain the licence.
For a flat in a section 257 converted building that is occupied by three or four persons forming more than one household who share a basic amenity all of which are within the flat, that is sharing bathroom and/or toilet and/or cooking facilities, it would be for the owner of that individual flat to obtain the licence (whether the freeholder or a leaseholder). In some scenarios this will therefore require two (or more) licences to be in place in regard to the same building – one for the communal areas which are under the freeholder’s control (as well as any applicable flats under their control) and one for each flat with three or four occupants which is under a leaseholder’s control.
Those properties that have five or more occupants in two or more households and who share facilities are already covered by the mandatory HMO licensing requirements and should already have obtained a licence.
Properties that are already mandatorily licensed would not be required to obtain an additional licence under the proposed additional HMO licensing scheme.
Additional licensing schemes operate for a period of up to five years before they need to be renewed. A new consultation would then be undertaken at that time.
Examples of the types of properties that will be included in Arun’s additional HMO licensing scheme are shown below:
Colour key
Yellow = Under freehold ownership control, including exterior of building and any associated land
Red = Under leasehold ownership control three or four occupants in two or more households sharing bathroom, WC or cooking facilities
White = Under leasehold ownership control rented to a single occupant or a couple, two unrelated occupants, or a family or owner-occupied
Example 1
Freeholder owns the building
Entire house or flat has five or more occupants in two or more households sharing bathroom, WC or cooking facilities
Already licensable under the mandatory HMO licensing regime
Example 2
Freeholder owns the building
Entire house or flat with three or four occupants in two or more households sharing bathroom, WC or cooking facilities
Licensable under the proposed scheme. It would be for the freeholder to obtain the licence
Example 3
All three flats in the building are owner-occupied
Not licensable under the proposed scheme
Fire safety regulations and guidance would still apply to lobbies, hallways and landings
Example 4
Two flats are owner-occupied but the third is rented out to a family or fewer than three occupants
Not licensable under the proposed scheme
Fire safety regulations and guidance would still apply to lobbies, hallways and landings
Example 5
One flat is owner-occupied or rented to a family or fewer than three occupants by the freeholder
Two flats are rented out by leaseholders to a family or fewer than three occupants in each flat
Licensable under the proposed scheme
Only the common parts of the building and the exterior of the building and associated land would be covered by the license. It would be for the freeholder to obtain the licence
Example 6
One flat is leasehold owned and occupied
One flat is leasehold-owned but rented out to a family or fewer than three occupants
One flat is leasehold-owned and rented out to three or four occupants in two or more households sharing bathroom, WC or cooking facilities (red unit)
Under the proposed scheme the building is licensable including common parts and the exterior of the building, and associated land. This would be for the freeholder to obtain the licence
The flat rented out to three or four occupants is individually licensable under the proposed scheme. This would be for the flat’s owner to obtain the licence
Example 7
One flat is leasehold-owned and occupied or rented out to a family or fewer than three occupants
Two flats are leasehold-owned and rented out to three or four occupants in two or more households sharing bathroom, WC or cooking facilities (red units)
Under the proposed scheme the building is licensable including common parts and the exterior of the building, and associated land. This would be for the freeholder to obtain the licence
The two flats rented out to three or four occupants are both individually licensable under the proposed scheme. This would be for the flats’ owners to obtain the licences
Example 8
The freeholder owns the building and one flat which they rent out to three or four occupants in two or more households sharing bathroom, WC or cooking facilities
Two flats are rented out by leaseholders to a family or fewer than three occupants in each flat
Licensable under the proposed scheme
The common parts of the building, the exterior of the building and associated land and the flat with three or four occupants would need to be licenced. It would be for the freeholder to obtain the two licences
Example 9
Ground floor is a commercial premise
The two flats above the commercial premises are rented out to a family or fewer than three occupants in each flat
The common parts entrance and stairs and exterior of the building, and associated land are licensable under the proposed scheme. This would be for the freeholder to obtain the licence
Example 10
Two flats with communal hallway and landing on ground and first floor level
One flat is leasehold owned and rented out to a family or fewer than three occupants
One flat is leasehold-owned and rented out to three or four occupants in two or more households sharing bathroom, WC or cooking facilities (red unit)
Under the proposed scheme the building is licensable including common parts and the exterior of the building, and associated land. This would be for the freeholder to obtain the licence
The flat rented out to three or four occupants is individually licensable under the proposed scheme. This would be for the flat’s owner to obtain the licence
Example 11
Two flats accessed by a communal lobby on the ground floor only. Each flat has a family or fewer than three occupants
Not licensable under the proposed scheme
Fire safety regulations and guidance would still apply to the lobby or entrance hallway
Example 12
Three flats all with their own separate entrances and no communal parts
Each flat has a family or fewer than three occupants
Not licensable under the proposed scheme
Example 13
Converted property where some flats do not have their own bathroom, WC or cooking facilities within the flat
Freeholder owns and rents out each flat
The common parts and exterior of the building, shared bathrooms and kitchens, and flats 2 and 3 are licensable under the proposed scheme. This would be for the freeholder to obtain the licence
Exemptions and exclusions
There are a number of properties and occupancy types that are exempt from requiring a HMO licence, either mandatory or additional. These exemptions to the licensing requirements are included in Schedule 14 of the Housing Act 2004 and primarily relate to buildings owned and managed by public sector bodies, housing associations, the police, and educational establishments. For the proposed scheme these will include the following:
- Any property occupied by only two people who form two households
- Buildings managed by a local housing authority, registered social landlord, police or fire and rescue authority or a health service body
- Buildings already regulated under certain other statutory provisions, such as care homes
- Student halls of residence and buildings managed by an educational establishment
- Buildings occupied for the purposes of a religious community whose principal occupation is prayer, contemplation, education or the relief of suffering. (This does not apply in the case of a converted block of flats to which section 257 applies)
- Common parts of purpose-built blocks of flats that meet the relevant Building Regulations at the time they were built (but individual HMO flats within the block may be licensable)
- The owner lives in the property with no more than two lodgers
- Owner-occupied properties. (This does not apply in the case of a converted block of flats to which section 257 applies, except for the purpose of determining the status of any flat in the block)
- Rooms or dwellings that are let as short-term accommodation on a commercial basis - for example a 'host family' arrangement for foreign students, a holiday let, or Airbnb (but if one room is let as the main residence of a tenant, the property may need a licence). It will be for the council to determine on evidence provided whether a let is a short-term let rather than a tenancy or other type of accommodation
- Properties let as part of an adult placement or Shared Lives scheme where up to three adult placements, plus their careers, live at the property
- Properties which are subject to a temporary exemption under section 62 of the Housing Act 2004
- Properties which are already subject to mandatory HMO licensing under section 55(2)(a) of the Housing Act 2004
It should be remembered that properties with three or more people and two or more households are still HMOs even if they are not licensable under the mandatory licensing scheme and are already legally required to meet national and/or local HMO standards.