HMO Regulations in England & Wales

What is an HMO in England and Wales? Understanding HMO Requirements in Middlesbrough

Houses in Multiple Occupation (HMOs) are a popular rental option in England and Wales, particularly in areas like Middlesbrough. The demand for affordable shared housing is high among students, young professionals, and others. This blog post explores the definition of an HMO, its legal framework in England and Wales, and the specific HMO requirements in Middlesbrough.

What is an HMO in England and Wales?

A House in Multiple Occupation (HMO) is defined under the Housing Act 2004 as a property rented by at least three people who are not from the same household (e.g., not a family) and who share facilities such as the kitchen, bathroom, or toilet. It’s commonly referred to as a house share. HMOs can include shared houses, bedsits, or converted flats where tenants have individual tenancy agreements but share common areas. A large HMO is a property occupied by five or more people from two or more households, sharing amenities, and where at least one tenant pays rent. In England and Wales, the legal definition of an HMO is outlined in Section 254 of the Housing Act 2004. Specific cases include:

• A house or flat with three or more tenants forming two or more households, sharing amenities.
• A converted house with non-self-contained flats (e.g., bedsits) occupied by three or more tenants from multiple households.
• A building converted into flats that don’t meet the 1991 Building Regulations, where over a third of the flats are rented out (known as a Section 257 HMO).

HMOs are particularly popular in urban areas like Middlesbrough due to their affordability and ability to house multiple tenants. They offer landlords higher rental yields compared to single-let properties. However, managing an HMO comes with strict legal responsibilities, especially regarding licensing and safety standards.

HMO Licensing in England and Wales

HMO licensing is a critical aspect of property management in England and Wales. There are two main types of HMO licensing:

1. Mandatory Licensing: Required for large HMOs (five or more tenants from two or more households, sharing facilities). Since October 2018, the requirement for the property to be three or more storeys was removed. This broadened the scope of mandatory licensing.
2. Additional Licensing: Some local authorities, including Middlesbrough, may require licensing for smaller HMOs (three or more tenants) in specific areas. This addresses local housing issues.

Failure to obtain a required HMO licence can result in unlimited fines or a Rent Repayment Order (RRO). Tenants can reclaim up to 12 months’ rent in such cases. Landlords must apply for a licence through their local council, and each HMO property requires a separate licence. It is typically valid for up to five years.HMO Requirements in Middlesbrough

Middlesbrough Council has specific regulations to ensure HMOs meet safety, amenity, and management standards. Below are the key Middlesbrough HMO requirements landlords must follow:

1. Licensing Requirements

• Large HMOs: Any property with five or more tenants from two or more households, sharing amenities, requires a mandatory HMO licence.
• Smaller HMOs: Properties with three or four tenants may not need a mandatory licence but must still comply with HMO standards. However, Middlesbrough Council may impose additional licensing in certain areas. Therefore, landlords should check with the council to confirm requirements.
• Licence Conditions: Licences are granted based on the property’s layout at the time of application and typically last five years. Any changes, such as adding or removing bedrooms, require a licence variation. If the property is converted back to a single-family dwelling, the licence can be revoked.
• Application Process: Landlords must submit an application to Middlesbrough Council. They need to include details about the property, its facilities, and management arrangements. The council assesses whether the landlord is a “fit and proper person” (e.g., no relevant criminal convictions or breaches of housing laws) and whether the property meets safety and space standards.

2. Safety Standards

• Fire Safety: HMOs must comply with The Management of Houses in Multiple Occupation (England) Regulations 2006 and national fire safety guidance. This includes installing mains-powered smoke alarms and heat detectors in kitchens. It ensures clear, accessible escape routes. A written fire risk assessment is mandatory for licensed HMOs.
• Gas and Electrical Safety: Landlords must provide an annual Gas Safety Certificate and an Electrical Installation Condition Report (EICR) every five years, conducted by qualified professionals.
• Housing Health and Safety Rating System (HHSRS): HMOs must be free from hazards like dampness, electrical issues, or structural problems. These are assessed under the HHSRS.

3. Amenity Standards

• Room Sizes: Middlesbrough enforces minimum room size standards to prevent overcrowding. For example, bedrooms must meet specific size requirements based on the number of occupants.
• Shared Facilities: For HMOs with five or more tenants, there must be at least one bathroom (with a bath or shower) and one separate toilet with a wash hand basin for every five occupants. Kitchens must be equipped with adequate cooking, storage, and preparation facilities, including sinks with hot and cold water, refrigerators, and freezers.
• Waste Management: Landlords must provide sufficient bins and arrange waste collection with Middlesbrough Council to prevent waste buildup.

4. Management Responsibilities

• Landlords must maintain communal areas, ensure repairs are completed promptly, and provide a written tenancy agreement outlining tenant and landlord responsibilities.
• In Middlesbrough, compliance with The Licensing and Management of Houses in Multiple Occupation (England) Regulations 2006 is mandatory. This includes covering duties like maintaining facilities and addressing anti-social behaviour.

5. Planning Permission

• Converting a family home (C3 use class) to an HMO with three to six tenants (C4 use class) may not require planning permission. However, HMOs with seven or more tenants (Sui Generis) typically do. Middlesbrough landlords should check with the council. This is especially important if an Article 4 Direction is in place. It requires planning permission for smaller HMOs in specific areas.

Benefits and Challenges of Running an HMO in Middlesbrough

Benefits:

• Higher Rental Yields: HMOs can generate more income than single-let properties due to multiple tenants.
• Consistent Demand: Middlesbrough’s student and young professional population ensures strong demand for HMOs.
• Economies of Scale: Managing one HMO with multiple tenants can be more cost-effective than multiple single-let properties.

Challenges:

• Complex Regulations: Compliance with licensing, safety, and amenity standards requires significant time and investment.
• Higher Costs: HMO landlords face increased council tax, insurance, and maintenance costs.
• Management Intensity: HMOs require active management to address tenant issues and maintain compliance.

How to Apply for an HMO Licence in Middlesbrough

To apply for an HMO licence in Middlesbrough:

1. Contact Middlesbrough Council or visit their website to access the HMO licensing application form.
2. Provide details about the property, including the number of bedrooms, bathrooms, and kitchens, as well as ownership and management arrangements.
3. Submit required documents, such as gas and electrical safety certificates and a fire risk assessment.
4. Pay the licence fee, which varies but is typically split into an application fee and an enforcement fee. In Salford, for example, the fee is £880 for up to 12 bedrooms, with an additional £40 per bedroom beyond that. Middlesbrough’s fees may differ.
5. Await a council inspection to ensure the property meets standards. The process typically takes up to eight weeks, though complex cases may take longer.

Penalties for Non-Compliance

Non-compliance with HMO regulations in Middlesbrough can lead to severe consequences:

• Unlimited Fines: Renting out an unlicensed HMO is a criminal offence.
• Rent Repayment Orders: Tenants can reclaim rent if the HMO is unlicensed.
• Prosecution: Breaches of management or safety regulations may result in legal action or civil penalties.

Landlords can appeal incorrect HMO classifications or licensing decisions through a residential property tribunal.

Conclusion

Operating an HMO in Middlesbrough offers lucrative opportunities but comes with significant responsibilities. Understanding the HMO definition in England and Wales and adhering to Middlesbrough HMO requirements—including licensing, fire safety, amenity standards, and planning permissions—is essential. Landlords need to comply for tenant safety. By meeting these standards, landlords can maximize rental income while providing safe, comfortable housing for tenants. For specific guidance, contact Middlesbrough Council or visit their website for detailed HMO licensing information. If you’re considering investing in an HMO, consult with a local property expert or letting agency to ensure compliance with all regulations.

Ready to start your HMO journey in Middlesbrough? 

Ensure you’re fully informed about HMO licensing and HMO regulations to avoid penalties and create a successful rental business. Check with Middlesbrough Council for the latest requirements and application processes today!