Additional HMO Licensing

Additional HMO Licensing

Understanding the ever-evolving landscape of HMO (House in Multiple Occupation) licensing can be overwhelming. Because of the complexities associated with this kind of licensing, many landlords assume that only larger HMOs, that is HMOs with 5 or more tenants, require a Licence. However, some smaller shared properties (254 HMOs), and certain types of converted buildings (257 HMOs), actually require licensing under specific local council rules. This is known as Additional HMO Licensing.

Failing to meet these requirements can result in hefty fines, rent repayment orders and banning orders.

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Illustration of a gavel, a house and a licensing checklist

What is Additional HMO Licensing

Additional HMO Licensing was introduced by councils in order to regulate smaller shared properties (254 HMOs), and certain types of converted buildings (257 HMOs) that do not fall under mandatory HMO licensing.

For 254 HMOs, this means that if your property is rented to 3 or more tenants from more than one household, who share essential facilities, you may require an Additional HMO Licence.

For 257 HMOs, this means buildings that: 1. Have been converted into self-contained flats; and 2. The conversion did not comply with the relevant Building Regulations in force at that time and still does not comply; and 3. Less than two-thirds of the flats are owner-occupied.

It is common to delve into the complexities of proving that a converted building meets the relevant building regulations, which can often be a convoluted and costly process.

Failure to obtain an Additional HMO Licence can result in severe consequences such as fines, possible rental bans and Rent Repayment Orders.

With this in mind, it is vital that landlords and property professionals investigate whether a property requires an Additional HMO Licence. Yuno is here to simplify the process by providing expert insight and guidance regarding Additional HMO licensing. We provide comprehensive and streamlined support to ensure you can navigate Additional HMO licensing smoothly, avoiding costly and potentially life-changing errors.

Do You Need an Additional HMO Licence?

Determining whether you require an Additional HMO Licence depends on your local council's regulations. Councils may introduce Additional licensing schemes in areas where they believe a significant proportion of HMOs are not being managed effectively, leading to problems for occupants or the surrounding community.

It is vital to consult your local council's guidelines to determine whether your property falls under the scheme. However, Yuno provides professional services to assist landlords and property professionals in determining their licensing requirements, ensuring compliance and avoiding potential financial losses.

Key Licensing Requirements for Landlords

In order to obtain an Additional HMO licence, landlords and property professionals need to comply with specific standards, including but not limited to the following:

Fit and Proper Person Test
Landlords or agents must have no criminal convictions or history of breaching landlord laws, which is defined under Part 263 of the Housing Act 2004 (England and Wales) under persons managing and persons in control.
Property Suitability and Minimum Room Sizes
Each bedroom on the property needs to meet the minimum sizes as set by the Government, though these can be increased by the local council, so ensure you have the correct advice, in England and Wales: 6.51 square meters for one occupant. 10.22 square meters for two occupants. Note: Measuring space in a bedroom is quite complex. Yuno is here to support you should you need it.
Amenity Standards
The required amenities are based on the guidelines set by the council, so they can vary heavily depending on the council, and they are to ensure that, based on the type and number of tenants, the relevant amenities are adequate.
Fire Safety Regulations
Correct installation and maintenance of smoke alarms and CO alarms, adherence to fire safety protocols, and clear escape routes need to be put in place on the property.
Waste Management
Adequate rubbish disposal facilities need to be in place, and properties need to adhere to local waste management guidelines.
HHSRS (England and Wales)
Licensing will look at all 29 hazards covered in HHSRS.
Energy Performance
Some councils push for higher energy efficiency standards, too.
Complying with the HMO Management Regulations 2006 (For 254 HMOs) or 2007 (For 257 HMOs) (England and Wales)
Regularly used to enforce, ensuring you comply with this even before and during the application process is essential. Don't just wait for the council; take the right advice from an Accredited Environmental Health Officer (CIEH), available through Yuno.

These are just some of the strict requirements that ensure property compliance and tenant safety.

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How to Apply for an Additional HMO Licence

The application process for an Additional HMO Licence typically involves the following steps:

1. Can you let the property as an HMO?
Check all your permissions, including on your lease, if you have one.
2. Documentation
Prepare necessary documents, including property floor plans and valid safety certificates. Some certifications may not be familiar to you and can be quite complex; it is common for councils to request Fire Safety Risk Assessments (FSRA) and Automatic Fire Detection (AFD) Certification. Yuno can support with simple and complex compliance certifications.
3. Application Fees
Fees vary by council and can range from a few hundred to thousands of pounds. Some councils may offer discounts for accredited landlords.
4. Application Submission
Submit the application to your local council, along with the required fees.
5. Notify all Relevant Parties
As per the Housing Act 2004, lenders, property managers, building managers, freeholders, and anyone with an interest in the property is to be notified legally by the applicant.
6. Processing Times
The duration for approval can differ, but councils aim to process applications within a specified timeframe, often several weeks but has seen to be years.
7. Inspection
The council will inspect the property to ensure it meets all standards, at least once in the 5-year licensing term. Sometimes an inspection is required before issuing a licence.
8. Common Reasons for Rejection
Incomplete or incorrect applications, failure to meet property standards, not being Fit and Proper, or a history of non-compliance can lead to rejection. Not doing things correctly can add additional costs and risks to the whole process.
9. Draft Licence
The council will issue a draft licence 21 days before the final licence. This is your time to review.
10. Representations
Upon receiving the draft licence, a thorough review should be conducted to ensure you understand what you are agreeing to comply with. It is advisable to seek expert advice to determine if the upgrades are reasonable, as you may save a significant amount of money. Yuno can help.
11. Approval
The council will issue the HMO licence.
12. Upgrades to meet compliance requirements
Ensure any upgrades are carried out by competent and accredited experts; the council will ask for proof through documentation and certification.
13. Staying compliant with the licence
Ongoing compliance is what licensing is all about, staying compliant with all documentation and certification requirements is complex and time-consuming, but a must to avoid fines. Yuno Tech is designed to help you stay compliant.

It is essential to note that processing fees and times vary by local council, so it is advisable to consult your local authority for specific details, or Yuno can provide support.

Navigating the Additional HMO licensing process can be overwhelming, but with this in mind, Yuno has simplified the process by providing landlords with expert support at every stage. Our goal is to minimise delays, total costs, risks and potential penalties.

Planning: Remember that if you do not have the relevant planning permission in place or have not applied for it before applying for the licence, you may receive a refusal of the licence or a short licence term, which will add costs and stress. Yuno can confirm your requirements before you start on your journey.

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How Yuno Helps Landlords Get Licensed

Yuno specialises in assisting landlords through the entire licensing process. We offer a variety of services, including:

  • Instant checks and Live monitoring of your portfolio. Identifying which properties require a licence couldn't be easier with Yuno's API and platform to support you.

  • Eligibility Assessment. Determining if your property requires an Additional HMO licence based on local regulations.

  • Application Management. Handling the preparation and submission of all necessary documentation to ensure accuracy and completeness.

  • Compliance Guidance. Providing advice on meeting all regulatory standards, including property improvements and management practices.

  • Compliance Upgrades. Yuno provide access to accredited experts for advice and upgrades where required.

By partnering with Yuno, landlords can navigate the licensing process successfully and effortlessly, thereby reducing the risk of delays or penalties.

What Happens If You Don’t Have an Additional HMO Licence?

Non-compliance with Additional HMO Licensing can result in severe consequences, including:

  • Fines up to £40,000 per offence

    Local authorities can impose substantial fines for operating without a Licence.

  • Rent Repayment Orders

    Landlords may be required to refund up to 24 months' rent to tenants.

  • Prosecution and Criminal Penalties

    Serious breaches can result in prosecution, leading to a criminal record and additional fines.

Ensuring compliance not only avoids these penalties but also contributes to maintaining high housing standards and tenant satisfaction.

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Ongoing Compliance

Licensing regulations are well known to change over time, and Licences require periodic renewal. Yuno offers ongoing support to help landlords stay informed about:

  • Instant checks and Live monitoring of your portfolio. Identifying which properties require a licence and planning couldn't be easier with Yuno's API and platform to support you.

  • Eligibility Assessment. Determining if your property requires a licence based on local regulations.

  • Licensing and Planning Application Management. Handling the preparation and submission of all necessary documentation to ensure accuracy and completeness.

  • Compliance Guidance. Providing advice on meeting all regulatory standards, including property improvements and management practices.

  • Compliance Upgrades. Yuno provide access to accredited experts for advice and upgrades where required.

  • Expert Advice. Access to professionals with in-depth knowledge of regulations and best practices.

  • Compliance Tracking. Yuno tech tools are used to monitor and manage ongoing compliance obligations.

This continuous support ensures that landlords remain compliant and avoid potential issues arising from regulatory changes.

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Book a Consultation for Your Additional HMO Licence

Ensuring compliance with Additional HMO Licensing is vital for protecting your investment and providing safe housing for tenants. Yuno offers expert guidance to simplify the licensing process. Contact Yuno today to schedule a consultation.

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