House in Multiple Occupation Licence
What is a House in Multiple Occupation?
A house in multiple occupation (HMO) is a building which is lived in by more than one household who share basic facilities such as a kitchen, a bathroom or a toilet. People are treated as being part of the same household if they are related to each other (i.e. family members) or live together as a couple.
Bedsits and houses shared by friends or work colleagues are likely to be HMOs. There are some exemptions, for example houses occupied by two unrelated individuals, which are not treated as HMOs.
The Law
Houses in Multiple Occupation (HMOs) in the Chiltern district area are required by law to be licensed by the local authority if:
- the property is three storeys or more, and
- is let to five or more tenants who form more than one household.
It is an offence to operate a licensable HMO without a licence from the local authority. You cannot legally collect any rent on the property and you may be prosecuted for failure to have a licence. The maximum fine is £20,000. You may also have to repay any rent received over the previous 12 month period.
Licence requirements
In deciding whether to grant a licence, the Council will need to be satisfied that:
- the property meets the current minimum prescribed housing and fire safety standards to ensure it is safe for tenants
- the property meets minimum prescribed amenities standards, such as an adequate number of bathrooms and cooking facilities.
- the licence holder and manager is a 'fit and proper' person
- the management of the property is satisfactory.
When a license has been granted, it will normally remain valid for five years.
