If you are purchasing a buy to let and intend to enter the renting market, you should understand the term HMO – House in Multiple Occupation. Crucially, you may also need planning permission depending to your local council’s rules. HMO licensing and planning permission are two separate legal requirements – failure to comply can amount to a criminal offence and cost you unlimited fine.
What is an HMO?
A house in multiple occupation (HMO) is a house or flat where both of the following apply:
- At least three people live there, forming more than one household.
- The occupants share toilet, bathroom or kitchen facilities with other tenants.
There are two main types:
- Small HMO – typically 3–4 tenants in 2 or more households.
- Large HMO – 5 or more tenants in multiple households (this requires a mandatory licence).
When do you need an HMO licence?
You will always need a licence for a large HMO. For a small HMO, a licence is required if the local authority imposes an additional licensing scheme. Always check your local council scheme before renting out your property.
A licence is valid for a maximum of 5 years, and you must renew your licence before it runs out.
Conditions for an HMO licence
The conditions for an HMO licence are that you must:
- send the council an updated gas safety certificate every year
- install and maintain smoke alarms
- provide safety certificates for all electrical appliances when requested
The council may add other conditions to your licence, for example improving the standard of your facilities. They will let you know when you apply.
Planning permission
You do not need planning permission when converting the use of a dwelling house (use class C3) to a C4 HMO (small HMO), as this is a permitted development.
However, planning permission may be required for change of use from C3 to C4 HMO, subject to whether the Article 4 Directions applies by the council.
If the Article 4 Directions applies in the area:
- You need to apply for planning permission to use the property as an HMO
- Failure to have planning consent could mean the property is in breach of planning control
- Local authority could serve an enforcement notice, requiring use to revert to C3 (single household)
If you are converting C3 into a large HMO, planning permission is always required, regardless of Article 4 Directions.
Final thoughts
In summary, even if the property does not require an HMO licence, you may still need planning permission if it is in Article 4 area. Landlords should therefore check both the licensing and planning rules before renting out the property.
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