Appendix 3 - 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:

hmo colour key depicting the different classifications on residence. More information is within the text body.

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

 

Image shows a building shaded yellow, indicating freeholder ownership control

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

 

HMO example 2 shows a building shaded yellow, indicating freeholder owns the building

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 depicting an unshaded building. All three flats in the building are owner-occupied

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 depicts an unshaded building, meaning leasehold control. Two flats are owner-occupied but the third is rented out to a family or fewer than three occupants

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 shows a building with unshaded floors and yellow shaded communal areas. More information is in the main body text

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 shows two unshaded floors, 1 red floor, and yellow shaded communal areas. more information is in the main text body.

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 shows one white, and two red floors, and yellow communal areas. There is further description in the main text body

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 shows one yellow floor, yellow communal areas, and two white floors

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

 

three white floors and yellow shaded communal areas. the ground floor is labelled commercial premises

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 shows a building with one red floor that has its own door, one white floor that has its own door, and yellow shaded communal areas.

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 shows Two unshaded flats accessed by a communal lobby on the ground floor only. Each flat has a family or fewer than three occupants 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 shows Three unshaded flats all with their own separate entrances and no communal parts Each flat has a family or fewer than three occupants 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 shows a yellow shaded building except for the ground floor, which is unshaded. more information is in the text description

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.