Many Landlords and Lettings Agents are aware of the new laws regarding Houses in Multiple Occupation introduced in the Housing Act 2004.
This requires Landlords or Letting Agents with properties of 3 storey or more with more than 5 individual households to be licensed.
The idea of the legislation was originally to have a national scheme that everyone understood.This would make it easier for Local Authorities, Landlords and Letting Agents to recognize a HMO and act accordingly as there would be one definition across the country for all Local Authorities.This all sounds great, and it is hoped that through this it would be easier to uncover disreputable Landlords and bring them into line.
What you may not be aware of is, Additional Licensing, where Local Authorities can in effect decide their own criteria in addition to the standard licensing.
For example, the London Boroughs of Ealing, Hounslow and Hillingdon criteria for HMO's under Additional Licensing includes flats and 2 storey properties with more than 2 households.Therefore, if you have 3 individual tenants in any property, self contained or not, converted or not, you may have to register that property.Failure to apply for a license is an offence under Section 72 (i) of the Housing Act 2004 for which a person may be fined up to, £20,000.That fine will be levied on the person responsible for the property, which maybe a Landlord or Agent/Property Manager