New guide explains mandatory licensing regulations
by Patrick Garratt - 22nd June 2018
Publication lays out responsibilities for landlords and local authorities
The Government has published its guidance to local authorities (LAs) in preparation for the law-change governing Houses in Multiple Occupation (HMO).
The law, which comes into effect on 1st October 2108, will extend mandatory HMO licensing of rental properties. It removes the so-called ‘three storeys’ rule, meaning the majority of properties rented to five or more people from two separate households will need an HMO licence.
It also contains the much fretted over clause that sets out a national minimum room size.
There has been concern about how LAs will handle the regulatory changes. This guide makes the process more transparent. It also arrives in enough time to give landlords time to understand the changes and apply for their licence, or a temporary exemption, before the 1st October cut off.
While LAs will manage the changes to the licensing of HMOs, the guide also makes it clear that they have a duty to publicise the new regulations, so that landlords are clued-in and can get ready. LAs are expected to actively promotion awareness of the changes before the autumn cut off, so be on the lookout for adverts in the local press, as well as updated information on their websites.
Preparedness is the watchword, but the law change doesn’t necessarily mean a rush to the housing authority. If you are one of the landlords with properties that will newly qualify for mandatory licensing, there is every chance that it will not apply until any current special licence on the property expires.
This means the regulations will only affect licence applications for 1st October or afterwards. Landlords with current valid HMO licences do not have to reapply until that licence expires.
LAs will only be able to enforce the new requirements for those properties with the new licence.
In general, student properties tend towards a three-storey layout. This means that landlords with student properties are unlikely to feel much effect from the widening of the requirements. You will probably already be comfortable with the strict measures required for your property to comply with a mandatory licence. (Or you have an agent who sorts all of this out for you.)
However, some landlords will need to think about their portfolios. You will need to consider any properties that are let to five or more people from different households, but don’t currently have a licence. From October, you will need a licence for these properties. If you’re a client, speak to your account manager, if you’re not sure.
According to the guidance, a house does not have to have been structurally altered for it to require a new licence. If there are five people from two households or more who share the property, you will need a licence.
Room to manoeuvre
The change to the law that has raised some concern from student landlords is the new standard room size clause.
This means that minimum bedroom size is now standardised across the whole of England. Individual LAs can require different room sizes, but none can be smaller than:
- 6.51 m² for one person over 10 years of age
- 10.22 m² for two persons over 10 years of age
- 4.64 m² for one child under the age of 10 years
However, having HMO licences featuring a minimum room size is not new. Many LAs already include some sort of provision in their current licences.
What has got some landlords reaching for the tape measure is the fact that there are lots of HMOs out there with that ‘small room at the back’. For instance, Birmingham City Council has a 10% leeway, enabling landlords to rent out one bedroom that is 5.82 m², as long as the other bedrooms in the property comply with its 6.5 m² requirement.
Some of these properties might fall foul of this new law.
Of course, while you’re reaching for the tape measure, it’s worth remembering that the new rule will only apply once you renew your HMO licence for each property.
More good news is that LAs are required to give landlords time to comply with the new rules on room sizes. If a room does not comply, the authority must state why and give time for the landlord to take action. The maximum time for this is 18 months, but the authorities have been given scope to reduce this if they think necessary.
There’s also breathing space for landlords who have properties currently licensed under additional or selective licences. They will not have to move to the new mandatory licence, until their current one expires. LAs are also forbidden to enforce the new laws, until a property needs to be licensed again under the new scheme.
Rubbish
Refuse storage is also becoming a provision in the licence. Again, from the 1st October start date, LAs will impose a condition on licences that ensures HMO properties are provided with suitable refuse storage facilities. Some LAs already have these requirements as part of their special licences, others do not.
Some people are concerned that adding this requirement into a mandatory licence gave LAs an inroad to charging for waste removal at HMOs. This guidance is clear that HMOs are residential properties and those living there can expect regular waste collections, free at point of use.
This is going to be a big change for how rental properties are going to be licenced.
If you are a current Purple Frog client and would like to speak to someone about the licence changes, please speak to your account manager.
If you’re not yet a client, we’re happy to discuss your student properties with you. Fill in the form on our landlord page, or contact us directly, to see how we can help you manage your student properties.
You can download the Government’s guide here: assets.publishing.service.gov.uk/HMOs_and_residential_property_licensing_reforms_guidance_final_v1.pdf
Further reading:
We have been following this story for a while. Here are some of the other posts covering the change in the regulations:
https://www.purplefrogproperty.com/blog/minimum-bedroom-sizes-hmos/
https://www.purplefrogproperty.com/blog/government-announces-new-hmo-regulations/
https://www.purplefrogproperty.com/blog/government-expand-licensing-rental-properties/