Definition of an HMO
A House in Multiple Occupation (HMO) is defined as:
- An entire house or flat which is let to 3 or more occupiers who form 2 or more households and who share basic amenities – e.g. a kitchen, bathroom or toilet.
Note:- rents must be payable or other consideration are to be provided;
it is the occupiers only, or main residence; A resident landlord is allowed to rent to two extra sharers before it becomes an HMO; (Section 254 HMO’s)
Or:- - A building which is converted entirely into self-contained flats if the conversion does not meet the appropriate building standards (generally the 1991 Building Regulations) and more than one-third of the flats are let on short-term tenancies (Section 257 HMO’s);[Note: S257 HMO is generally not subject to as much regulation but can be included in local authority additional licencing schemes.].
Note that the legislation refers to occupiers, not tenants. So, a family taking in a (non-related) lodger would create an HMO, whether the landlord is aware or not.
All HMO’s all subject to HMO Management Regulations,-Additionally, the Local Authority might require:
- A manager, and that the;
- Manager is a fit and proper person
Note that the manager does not have to be the landlord.
The Fit and Proper person
The “Fit and Proper Person” (FPP) test ensures HMO licence holders and managers have sufficient integrity and character to safely operate Houses in Multiple Occupation, preventing risks to tenants by scrutinizing past offenses (fraud, violence, housing law breaches) and overall conduct. Local authorities assess this, considering evidence like criminal records, unlawful discrimination, and adherence to housing laws.
Key aspects of the Fit and Proper Person test for HMOs
- Applies to: The proposed licence holder, the property manager (if different), and any person involved in management/rent collection.
- Purpose: To ensure those managing HMOs do not pose a risk to residents’ safety or welfare.
- Assessment criteria (Local Authority will check for):
- Offenses involving fraud, dishonesty, violence, drugs, or certain sexual offenses.
- Unlawful discrimination (sex, race, disability) in business.
- Contravention of housing or landlord/tenant law.
- Breaches of approved codes of practice or previous failed HMO management.
- Relational test: Can also consider offenses committed by “associated” persons to prevent circumvention (e.g., passing control to an associate).
- Outcomes: Failing the test can lead to license refusal, revocation, or enforcement action.
- Process: Applicants must declare relevant history, and councils may request further details/meetings.
HMO Manager Duties
HMO manager duties include maintaining safety (fire alarms, escapes), ensuring upkeep of common areas/utilities (gas, electricity, water, drainage), providing waste disposal, managing tenant information, and ensuring the property meets health/licensing standards. They are legally required to manage the property to a good standard under UK regulations (The Management of Houses in Multiple Occupation (England) Regulations 2006).
Key HMO manager responsibilities
- Safety & Fire: Maintain fire alarms, firefighting equipment, and keep fire escape routes clear.
- Safety checks and certification: Annual gas cert (normal), plus 5 yearly electric certificate
- Utilities & Maintenance: Ensure uninterrupted water, gas, electricity, and drainage; maintain common parts, fixtures, fittings, and appliances (e.g., cookers, heaters).
- Cleanliness & Waste: Keep common areas clean and provide adequate waste disposal facilities.
- Tenant Communication: Provide clear contact information (manager’s name, address, phone number) to all residents and display it prominently.
- Living Accommodation: Ensure each rented unit is clean at tenancy start and maintain the internal structure/fittings.
- Legality: Adhere to licensing conditions and management regulations (e.g., 2006/372).
- Protection: Take reasonable measures to protect occupiers from injury.
Be careful if you are letting to a family who subsequently take in a lodger. Whether you are aware or not they will have created an HMO, and if there are 5 (or more) occupants, will have created a Mandatory Licensable HMO.
Sharers vs HMO’s
Some Council differentiate between an HMO on one rental agreement (AST) which they call an HMO, and where the tenants are on individual agreements, which they call Sharers.
Note that the definition of an HMO is in legislation (Housing Act 2004) and does not take into regard the type of agreement.
Article 4 Direction
Frequently confused with licensing, if Article 4 Direction has been brought in by a Local Authority it is required to get planning permission on a new HMO. If a property was an HMO at the time Article 4 was introduced it will retain the rights to trade as an HMO, although some Authorities will not allow the property to retain that right if they choose to let as a non-HMO (i.e. a standard family let).
Note that a larger HMO of 6 occupants or more has always required to have planning permission.
