Letting agents must ensure their landlords properties are properly licensed or they could risk prosecution and an unlimited fine or a civil penalty of up to £30,000, while their landlords could be ordered to repay tenants up to 12 months’ rent. Recent research showed that 75% of privately rented properties in the capital that required a licence under mandatory HMO or additional licensing schemes were operating without one, putting letting agents, landlords, and their tenants at risk, so it’s important that letting agents are aware of their obligations.
Large HMOs in England or Wales must be licensed. A house in multiple occupation (HMO) is a property rented out by at least three people who are not from one household and share facilities in the property, like the bathroom and kitchen. A family or couple would be considered a household, while friends in a house share would not.
A property is defined as a large HMO if all of the following apply:
Smaller HMOs may still need a licence, depending on the area the property is in. Even if a property is smaller and rented to fewer people, it may still need a licence, depending on the area. This can be checked with the property’s local council.
In order for a property to be licensed, it must:
The landlord or agent is also required to:
The council could also add other conditions to the HMO licence, for example, improving the standard of the property’s facilities.
A rental property might still be subject to additional licensing requirements, even if it isn’t an HMO. Under the Housing Act 2004, local authorities have powers to introduce selective licensing of privately rented homes to address problems in their area caused by low housing demand and/or anti-social behaviour. You will need to check with the relevant local authority to find out if a rental property needs to be licensed.
Huguenot Place
Heneage Street
London
E1 5LN
Need to get in touch?
Contact us
Want to join our brilliant team?
See our available jobs!
Oh Goodlord Limited is an Appointed Representative of Goodlord Protect Limited for general insurance products and credit broking. Goodlord Protect Limited is directly authorised by the Financial Conduct Authority, registration number 836727. You can check this information on the Financial Services Register by visiting www.fca.org.uk/register or by telephoning 0800 111 6768 (Freephone) or 0300 500 8082 from the UK. The FCA is the independent watchdog that regulates financial services.