Housing Act 2004 Section 254

Property management software - property licence checker

Landlords must understand section 254 outlined in the Housing Act 2004. This Housing Act extended the rules regarding HMOs (House in Multiple Occupation) and their regulated licences. This guide will focus on Section 254 under the Housing Act so you can better understand what it is and if there is anything you need to do.

It’s also important to note that changes to Section 254 may happen in the future, so checking regulations regularly is always encouraged.

What is Defined as an HMO?

This type of property includes a house, flat share, a student home, bedsits, and some buildings which have been converted into more than one self-contained flat. For a property to be defined, it must meet the following criteria:

HMOs Under Section 254

  • The Standard Test. A house occupied by people from more than one household who share an amenity (such as a kitchen or bathroom).
  • The Self-Contained Flat Test. A flat occupied by people from more than one household who share an amenity (such as a kitchen or bathroom) and which are in the flat.
  • The Converted Building Test. A building that has been converted into more than one flat. The flats don’t all have to be fully self-contained, and amenities may not necessarily be shared.

What is Classed as a Household for Section 254 legislation?

To understand whether a property involves more than one household, you should understand the definition of ‘one household.’

A household is considered one person, or a family of people, living together. This could be single occupancy, a non-married couple, a married couple, or family members like children and their parents. You could also have live-in services related to one family, such as a nanny.

More than one household, therefore, comes into play when you have friends living together or tenants who are simply roommates. This is considered a shared tenancy – or house or flat share – and is viewed as each individual coming from their own household.

What is Outlined?

The Standard Test

A property/part of a property meets the standard test if:

  • It has more than one unit of living accommodation
  • It is lived in by persons who do not form a single household
  • The living accommodation is their only or main residence
  • Two or more of the households within the property share one or more basic amenities

The Self-Contained Flat Test

A part of a property meets the self-contained flat test if:

  • It consists of a self-contained flat
  • It is occupied by persons who do not form a single household
  • The living accommodation is their only or main residence
  • Two or more of the households within the property share one or more basic amenities

The Converted Building Test

A property/part of a property meets the converted building test if:

  • It is a converted building
  • It has more than one unit of living accommodation that does not consist of a self-contained flat/flats
  • It is occupied by persons who do not form a single household
  • The living accommodation is their only or main residence

How we can help

In the ever changing world of local council regulations, we have the know how to help unpick these complicated regulations. If you feel that you need further assistance then please feel free to drop us an email or go to our support page

Share

Discover Yuno Compliance Solutions!

Effortlessly stay on top of property legislation with a digital compliance report for every property in the UK. Yuno offers an all-in-one solution for seamless digital audits, real-time updates, and a wealth of property compliance knowledge, transforming compliance from a daunting obligation into a strategic advantage.

Yunoversity Tutorials

Yunoversity Tutorials

Yuno Compliance

1/4
2/4
3/4
4/4

Paul Conway Founder & CEO

With over 15 years immersed in the property sector, Paul’s expertise is unparalleled. From his beginnings as a developer in Chelsea to pioneering the innovative Yuno property compliance model, his journey showcases a deep understanding of the industry’s intricacies.

Having been a slave to the beast of responsibility & liability, Paul decided to partner with property legal professionals & experts to create a platform that would empower all with the knowledge and means to set themselves free once and for all. With Yuno, you’re not just complying; you’re thriving.

Steve Simons Financial Director

With his Chartered Accountant background and extensive experience in corporate finance, private equity, and real estate, Steve plays a pivotal role as our Financial Director and Advisor. His financial acumen is invaluable in shaping Yuno’s financial strategies and ensuring sound financial governance. 

With over 25 years of experience, Steve’s insights and guidance are instrumental in driving Yuno’s financial success.

Russell Cole Advisor CTO

With over 15 years of professional experience spanning diverse sectors, from law enforcement to fintech, Russell brings a wealth of knowledge to our team.

In 2016, Russell’s entrepreneurial spirit led him to raise an impressive $8 million for the establishment of Paymenta, a cutting-edge platform specializing in foreign exchange and remittances.

Russell is a proud graduate of Oxford, where he earned his PGDip in Software and System Security. His expertise and passion for technology make him an invaluable asset to Yuno, ensuring our platform remains at the forefront of innovation.

Lori Thompson Boardmember & Advisor

Lori brings over two decades of expertise in estate agency and the private rental sector to the Yuno team. 

As a valued advisor, Lori plays a crucial role in shaping Yuno’s compliance solutions, ensuring they meet the needs of our clients in an ever-evolving industry. Her wealth of knowledge and commitment to excellence make her an integral part of our mission to simplify compliance in property management.

David Smith Lawyer

David’s legal prowess in property litigation, property regulation, and data protection is unparalleled. His extensive experience, especially in matters concerning residential tenancies and agencies, makes him an invaluable asset to Yuno. 

With a keen eye for new legislation and obligations, David excels in advising and litigating complex property issues. He has a knack for finding innovative solutions within existing laws to tackle unique client challenges.

Kate Faulkner OBE Advisor – Industry Figure

With a proven track record of nurturing businesses and an in-depth understanding of consumer behaviour in relation to property, Kate is a true industry figure. Her insights and expertise are invaluable to Yuno’s mission.

Kate’s dedication to improving the property industry aligns perfectly with our goals, and her guidance helps us continually evolve to meet the needs of property professionals and consumers alike.

Yuno Compliance

1/4
2/4
3/4
4/4