By: 24 October 2024
Are Yorkshire councils cracking down on illegal HMOs?

Houses in multiple occupation (HMOs) have become increasingly popular with professional landlords and property investors with more than 400,000 in the UK in 2024. However, councils across the UK and most recently in North Yorkshire, have introduced new licensing schemes and stricter regulations to improve the Private Rented Sector (PRS) and crack down on the number of illegal HMOs. 

The licensing boom is set to only continue as councils focus on the number of illegal HMOs with new licence requests. Perdip Kaur Bhachu (pictured), a senior associate solicitor in the residential property team at Blacks Solicitors, discusses the rise in illegal HMOs and shares best advice for those with or considering purchasing HMO:

What is a HMO?

A HMO or a House in Multiple Occupation is a property let to multiple, unrelated tenants. It is defined and regulated by The Housing Act 2004, which first came into force in 2006 and changed legislation and licensing around HMOs. If a property is occupied by three or more people who form more than one household and who share facilities such as a kitchen, bathroom and possibly a living room or communal space then it is a HMO.   

Licences are mandatory in England for all HMO properties occupied by five or more people forming more than one household who share facilities.   

Why are councils cracking down? 

Councils across the UK are cracking down on HMOs for many reasons, including council tax revenue, minimising impact to communities and local amenities, council services, licensing and planning permissions.  Councils continue to warn landlords that HMOs must meet all their legal responsibilities ahead of a crackdown on unlicensed properties in their area. The penalties of managing HMOs without a licence can be severe, with the potential of facing prosecution at a magistrates court,  an unlimited fine, a banning order and being registered on the rogue landlord database. 

Implications in practice: 

The City of York has recently released a supplementary planning document to control the concentration of HMOs in the city. Whilst HMOs are regarded as a valuable asset to York’s housing offering, there is growing concern about the concentration of HMOs and the wider impact on the neighbourhoods and increasing rental costs.  

An evidence base has recently been developed to explore the impact of HMOs in the area to ensure that communities do not become imbalanced. From 01st April 2023, eight selected electoral ward boundaries across York are now required to meet both mandatory and additional HMO licensing, meaning that all HMOs occupied by three or four people who form more than one household must secure a HMO licence. 

Similarly, other councils, such as Bolton Council, have confirmed they are coordinating a campaign to ‘rein’ in the number of HMOs, with planning and parking rules and council tax rebanding which will make securing licences for this type of rented property much harder. 

Key things to consider for those with HMOs 

Understanding licensing: 

HMO properties come in all shapes and sizes from traditional bedsits to shared houses, hostels, self-contained flats and converted buildings. Different sizes of HMO properties do, of course, have alternative licensing requirements and these vary depending on the location of the property. The licence issued and regulated by the Local Authority lasts for a maximum of five years and demonstrates that the property meets (or at the time of the assessment, met) the minimum standards. The licence whilst relating to the property is issued to the person managing the property and is not transferable.  

Planning is key:

For any property to become a HMO, planning regulations will need to be considered to ensure it is in the correct Planning Use Category. All large HMOs require planning consent for change of use. For planning purposes, a HMO is considered ‘large’ if it is let to seven or more people forming more than one household who share facilities. 

If you are considering purchasing a HMO or unsure of your legal position and responsibilities as a HMO owner, it is best advised to contact a Residential Property legal expert. 

For more information on Residential Property law, please visit: www.lawblacks.com 

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Guest Post
This post has been written by an expert guest contributor, just for Yorkshire Legal News.