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Are you prepared for upcoming HMO legislation changes?

Mon 24 September 2018

If you own a House in Multiple Occupation (HMO), you should be prepared for upcoming HMO legislation changes.

From 1 October this year, the criteria for which rental properties need a mandatory HMO licence is changing. As the term HMO refers to residential properties where ‘common areas’ exist and are shared by more than one household, these changes are being put in place in a bid to address poor living conditions and overcrowding in the Private Rented Sector.

As a result, from October all HMOs with five or more occupants from at least two unrelated households, irrespective of the number of storeys the property has, must be licenced.

What if I already have an HMO licence?

Landlords with existing licences are not required to reapply for a mandatory HMO licence until the existing one expires. That said, local authorities can still introduce licencing schemes for properties that fall outside the regulations.

What happens if I do not have a licence?

Landlords failing to comply with the new regulations could be faced with an unlimited fine or fixed penalty notice of up to £30,000. In addition to this, the landlord would be unable to issue their tenants with a Section 21 notice.

For more information or to seek advice on this matter, please contact Andrew Luxton MRICS FARLA, Partner in charge of Stags Lettings department or get in touch with your local authority.

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