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The Housing Act 2004 specifies what is a House in Multiple Occupation for the purposes of HMO management and licensing. It creates an overall definition of an HMO but only those with 5 or more occupants will have to be licensed.

The Housing Act 2004 specifies what is a House in Multiple Occupation for the purposes of HMO management and licensing. It creates an overall definition of an HMO but only those with 5 or more occupants will have to be licensed.

Certain HMOs require planning permission. The type of HMO that this applies to is different from the definition in the Housing Act. These planning definitions changed in April 2010, and again in the Autumn 2010, so local authorities are now able to choose whether to enforce the requirement for planning permission of certain HMOs, and if so, whether this is over their whole district, or just in certain areas. In Wales any change from a family house to any size of HMO needs planning permission.

Landlords of some HMOs have to pay the Council Tax for that property. The regulations putting this responsibility on landlords are contained in the Council Tax (Liability for Owners) Regulations 1992 as amended in 1993.

The definitions of HMO for these three areas of legislation are slightly different and can cause confusion. A property could be an HMO for one purpose, but not another.

An HMO [defined in ss.254 to 259 of the Housing Act 2004] is a building, or part of a building, such as a flat, that:

• is occupied by more than one household and where the occupants share, lack or must leave the front door to use an amenity, such as a bathroom, toilet or cooking facilities

or

An HMO [defined in ss.254 to 259 of the Housing Act 2004] is a building, or part of a building, such as a flat, that:

• is occupied by at least three persons forming more than one household and where the occupants share, lack or must leave the front door to use an amenity, such as a bathroom, toilet or cooking facilities 

or

• is occupied by more than one household in a converted building where not all the flats are self-contained (whether or not some amenities are shared or lacking). A self-contained unit is one which has inside it a kitchen (or cooking area), bathroom and toilet for the exclusive use of the household living in the unit. If the occupiers needs to leave the unit to gain access to any one of these amenities then the unit is not self-contained.

In both cases the households must occupy the building as their only or main residence and rent must be payable in respect of at least one of the household’s occupation of the property.

• A third type of HMO is any building which has been converted into self-contained flats, but does not meet as a minimum standard, the requirements of the 1991 Building Regulations, and where less than two thirds of flats are owner occupied. These are commonly referred to as s257 HMOs.

Generally a household is a family (including cohabiting couples and same sex couples) or other relationships, such as fostering, carers and domestic staff. It includes cousins, aunties and uncles and step-relatives. Each unrelated tenant sharing a property will be a single household.

Properties which are shared by two individuals are exempt from the HMO definition as are those with a resident landlord with no more than two lodgers.

Not all of these HMOs need to be licensed. However, management regulations place duties on the manager and occupants of all HMOs to ensure good day-to-day maintenance of the property.

More information on which HMOs need to be licensed is in the module on Licensing.

Some HMOs require planning permission to be used as HMOs. The definition of an HMO for planning purposes is different to the definition for licensing and management purposes. Most let properties will either be Dwelling Houses or Houses in Multiple Occupation.

Dwelling Houses

There are now 3 classifications of a dwelling house

Some HMOs require planning permission to be used as HMOs. The definition of an HMO for planning purposes is different to the definition for licensing and management purposes. Most let properties will either be Dwelling Houses or Houses in Multiple Occupation.

Dwelling Houses

There are now 3 classifications of a dwelling house

• Class C3(a) – those living together as a single household as defined by the Housing Act 2004 (basically related people, or co-habiting couple). There is no restriction on the number of people that who can live as a single household.
• Class C3(b) – up to 6 people, living together as a single household and receiving an element of care. Single household is not defined here.
• Class C3(c) – not more than 6 people living together as a single household, where no care is provided, and who do not fall within the C4 definition of an HMO. For example, as small religious community or a home owner living with 2 lodgers.

Houses in Multiple Occupation (3-6 occupants)

A new Class C4 has brought the definition for planning more in line with the Housing Act 2004.

• Class C4 – small shared dwelling houses occupied by between 3 and 6 unrelated individuals who share basic amenities. Must be occupied as the main residence.

Large Houses in Multiple Occupation

Those with more than 6 people sharing are unclassified and termed a sui generis use – ie ‘of their own kind’

As there is no formal definition of ‘household’ for planning purposes (apart from C3(a) ), planning officer will look for evidence that the tenants are together as a joint household. Such evidence might include:

• whether or not the tenants moved in together
• whether they know one another
• whether they are on a joint tenancy or are simply renting individual rooms
• the availability of communal facilities such as kitchens, dining rooms and living rooms where the tenants might socialise together
• whether or not individual doors are lockable against other tenants

This is not an exhaustive list and for more information a landlord should consult the local planning authority.

These definitions came into force on 6th April 2010 and do not apply retrospectively, so only those starting or changing use after that date will need permission.

From 6th of April 2010 landlords were required to get permission if they intend to let a family home (classed as C3 Dwelling House) to three or more unrelated people, who share amenities (class C4).

Landlords who were letting a property to three to six unrelated sharers as at 5 April 2010 would have an established right to continue to let their property in this way from the 6 April 2010, even if the property is let to new tenants after this date. However it is incumbent on the landlord to prove that the property was let in this way on 5th April, not on the Local Authority to prove that it was not. Make sure you keep records of previous tenancies to prove this.

If the property is let as a shared house to a family or single person you may lose your right to let it as a shared house in the future. It is advisable to consult the Planning Department in the Local Authority where your property is based before reletting your property. Ask for any clarification to be made in writing.

The new government has now relaxed the requirement and this means you no longer automatically require planning permission. However, the Government has allowed individual Local Authorities to decide whether they will require it in all or parts of their area. This came into effect on 4th October 2010. Again it is worth asking your local authority if permission is required.

In certain types of HMO it is the responsibility of the landlord, rather than the tenant, to pay the council tax for the property.

If the property was originally constructed or subsequently adapted for occupation by persons who do not constitute a single household and the occupants are only paying rent for part of the property, or only have the right to occupy part of the property, the landlord is responsible for paying the council tax.

In certain types of HMO it is the responsibility of the landlord, rather than the tenant, to pay the council tax for the property.

If the property was originally constructed or subsequently adapted for occupation by persons who do not constitute a single household and the occupants are only paying rent for part of the property, or only have the right to occupy part of the property, the landlord is responsible for paying the council tax.

In practice this means that if a landlord is letting individual rooms in a property he will have to pay the council tax. If the tenants are on a joint tenancy, sharing a house as friends and paying rent for the entire property it will be their responsibility to pay the council tax unless the tenancy agreement specifies otherwise.