House of Multiple Occupancy - Definitions
There are five definitions for a HMO, which can be found in the Housing Act 2004
Certain HMO's are required to be licensed by Cardiff County Council. If you are unsure on if your HMO should be licensed please see our section on mandatory and additional HMO licensing.
The most common method of a property being declared a HMO is S254(2) of the Housing Act 2004. This is defined as follows.
A building or a part of a building meets the standard test if-
- (a) it consists of one or more units of living accommodation not consisting of a self-contained flat or flats;
- (b) the living accommodation is occupied by persons who do not form a single household (see section 258);
- (c) the living accommodation is occupied by those persons as their only or main residence or they are to be treated as so occupying it (see section 259);
- (d) their occupation of the living accommodation constitutes the only use of that accommodation;
- (e) rents are payable or other consideration is to be provided in respect of at least one of those persons' occupation of the living accommodation; and
- (f) two or more of the households who occupy the living accommodation share one or more basic amenities or the living accommodation is lacking in one or more basic amenities.
At this point it is also worth noting that Schedule 14 of the 2004 Housing Act excludes certain properties from being classed as HMO's, which can be seen below.
Any building which is occupied only by two persons who form two households.
Therefore, this can be surmised as a HMO being an entire house or flat which is let to three or more tenants who form two or more households and who share a kitchen, bathroom or toilet . If you are unsure if your HMO is licensable, please see our Mandatory and Additional HMO licensing section.
Is my flat/apartment a HMO?
Just because your property is a self contained flat, this does not necessarily mean it is not a HMO. To examine this, we can look at the self contained flat test as defined below.
A part of a building meets the self-contained flat test if-
- (a) it consists of a self-contained flat; and
- (b) paragraphs (b) to (f) of subsection (2) apply (reading references to the living accommodation concerned as references to the flat).
This effectively means that if the flat meets the same requirements as a building for a HMO then the individual flat will be classed as a HMO. For example where there are three unrelated tenants in a flat/apartment, the individual flat would be classed as an HMO. Whether a HMO licence was required would depend on where the property was located, and if additional licensing is in force in that area.
However, there is also the converted building test, which is commonly referred to as S257 HMO's.
Section 257 of the 2004 Housing Act states that a converted block of flats will be classed as a HMO if: -
HMOs: certain converted blocks of flats
For the purposes of this section a "converted block of flats" means a building or part of a building which is converted into, and consists of, self-contained flats.
(2) This section applies to a converted block of flats if-
- (a) building work undertaken in connection with the conversion did not comply with the appropriate building standards and still does not comply with them; and
- (b) less than two-thirds of the self-contained flats are owner-occupied.
- (3) In subsection (2) "appropriate building standards" means-
- (a) in the case of a converted block of flats-
- (i) on which building work was completed before 1st June 1992 or which is dealt with by regulation 20 of the Building Regulations 1991 (S.I. 1991/2768), and
- (ii) which would not have been exempt under those Regulations, building standards equivalent to those imposed, in relation to a building or part of a building to which those Regulations applied, by those Regulations as they had effect on 1st June 1992; and
- (b) in the case of any other converted block of flats, the requirements imposed at the time in relation to it by regulations under section 1 of the Building Act 1984 (c. 55).
This can be surmised as a building which is converted entirely into self-contained flats if the conversion did not meet the standards of the 1991 Building Regulations and more than one-third of the flats are let on short-term tenancies. Full definitions of owner-occupation and building standards can be found here
CPS Homes have confirmed with Cardiff County Council that all HMO's including those defined under S257 of the Housing Act 2004 will require an HMO application to be made by 1st July 2010. Failure to apply for a licence is an offence under Section 72(1) of the Housing Act 2004 for which a person may be fined up to £20,000. In addition you may be required to repay up to 12 months rent collected ruing such time that the property was licensed.
CPS Homes have also confirmed with Cardiff County Council that one licence per block of flats will be required, and therefore one application fee. This only applies where there is one owner. Where there is more than one owner; each landlord will be required to make a separate application.
Do I need an HMO licence?
Firstly you will need to identify if you are the owner of a HMO. In order to do this please see our definitions section above. If you require assistance in ascertaining if your property is a HMO and you are a client of CPS Homes, please contact our Albany Road branch on 02920 454 555.
Once you have identified that your property is a HMO, there are currently two licensing schemes in effect in Cardiff, which may affect you.
Mandatory HMO licensingMandatory HMO licensing applies to all privately rented HMOs of three or more storeys and occupied by five or more people who form more than one household. Cardiff County Council impose conditions on these licensed properties such as requirements for them to be occupied by a specified maximum number of occupants, as well as ensuring that there are adequate amenities in place. Additionally landlords will need to be identified as being fit and proper in terms of their suitability to manage the property. Mandatory licensing is part of the Housing Act 2004 and is in place across the UK.
Additional LicensingCardiff County Council declared an additional licensing scheme for all Houses in Multiple Occupation (HMOs) in the Cathays Community Ward of the City on 4th March 1010. The scheme will go live on 1st July 2010 and all HMO landlords will be under a duty to apply. The scheme will last for 5 years.
If you have a HMO in Cathays including S257 HMO's or those meeting the standard test then you will have to make an HMO application.
The map of the affected area can be found here.
If you want to know more about applying for an HMO licence see our HMO Regulations Page
The official release from Cardiff County Council on additional licensing in Cathays can be found here