To determine what is an HMO we need to start with what ‘HMO’ stands for ie. House in Multiple Occupancy or House of Multiple Occupation. The standard definition of a section 254 HMO is:
The standard definition of a section 257 HMO refers to 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.
Note – some councils operate their Additional licensing scheme (s257) if the property has less than 50% of the flats owner occupied.
WHAT IS A “HOUSEHOLD”?
WHAT CONSTITUTES A “FAMILY”?
To be classified as an 254 HMO the property must meet the standards defined in the description above, and meet the standard conversion test, self-contained flat test or converted building test. The full definition of all HMO’s can be found in the Housing Act 2004 Sections 254 to 260.
A section 257 HMO is a whole building that has been converted into self-contained flats that meet specific criteria. The full details of what constitutes a section 257 HMO is under the additional licensing section.
There is no legal definition of a ‘shared house’ and so this term can sometimes cause confusion. The key point of a shared house HMO, is that the occupants are known to each other and there is therefore a level of interaction between them that resembles the way in which a family would be living together. Normally such properties will have additional shared space for socialising such as a dining room and / or lounge.
In a shared house all tenants are on the same tenancy agreement and all tenants have exclusive legal possession and control of all parts of the house, including all the bedrooms. There should therefore be no locks on internal doors apart from bathrooms. Whilst shared houses fall within the legal definition of an HMO and will be licensable where licensing criteria are met, it is recognised that they can often present a lower fire risk than traditional bedsit-type HMOs due to these characteristics.
A building which has been divided into individual non self-contained lettings, let to individual tenants. Each bedsit letting will usually comprise only one room (sometimes more) which may contain cooking/food preparation facilities, washing facilities and living/sleeping space. Sometimes bathrooms and WCs are shared between a number of bedsits. The actual facilities contained within each bedsit letting will vary from property to property.
Although many people immediately think of bed-sit type accommodation, the vast majority of HMOs in London were previously family homes, now being shared by young professional people.
A common part will be created in this circumstance and The Regulatory Reform (Fire Safety) Order 2005 will apply to the property.
Schedule 14 of the Housing Act 2004 lists all the exemptions.
HMOs can be classified by the size; small and large. A Small HMO is up to 6 tenants, from more than 1 household, sharing facilities whereas a large HMO is 7+ tenants, from more 1 than household, sharing facilities. If you are considering or are currently running a large HMO you will require planning permission from your local Council in order to do so. You may also require planning permission for a small HMO if your brough operates an Article 4 directive. (link to planning and Article 4 directive page)
WHAT IS A “HOUSEHOLD”?
WHAT CONSTITUTES A “FAMILY”?
To be classified as an 254 HMO the property must meet the standards defined in the description above, and meet the standard conversion test, self-contained flat test or converted building test. The full definition of all HMO’s can be found in the Housing Act 2004 Sections 254 to 260.
A section 257 HMO is a whole building that has been converted into self-contained flats that meet specific criteria. The full details of what constitutes a section 257 HMO is under the additional licensing section.
There is no legal definition of a ‘shared house’ and so this term can sometimes cause confusion. The key point of a shared house HMO, is that the occupants are known to each other and there is therefore a level of interaction between them that resembles the way in which a family would be living together. Normally such properties will have additional shared space for socialising such as a dining room and / or lounge.
In a shared house all tenants are on the same tenancy agreement and all tenants have exclusive legal possession and control of all parts of the house, including all the bedrooms. There should therefore be no locks on internal doors apart from bathrooms. Whilst shared houses fall within the legal definition of an HMO and will be licensable where licensing criteria are met, it is recognised that they can often present a lower fire risk than traditional bedsit-type HMOs due to these characteristics.
A building which has been divided into individual non self-contained lettings, let to individual tenants. Each bedsit letting will usually comprise only one room (sometimes more) which may contain cooking/food preparation facilities, washing facilities and living/sleeping space. Sometimes bathrooms and WCs are shared between a number of bedsits. The actual facilities contained within each bedsit letting will vary from property to property.
Although many people immediately think of bed-sit type accommodation, the vast majority of HMOs in London were previously family homes, now being shared by young professional people.
A common part will be created in this circumstance and The Regulatory Reform (Fire Safety) Order 2005 will apply to the property.
Schedule 14 of the Housing Act 2004 lists all the exemptions.
HMOs can be classified by the size; small and large. A Small HMO is up to 6 tenants, from more than 1 household, sharing facilities whereas a large HMO is 7+ tenants, from more 1 than household, sharing facilities. If you are considering or are currently running a large HMO you will require planning permission from your local Council in order to do so. You may also require planning permission for a small HMO if your brough operates an Article 4 directive. (link to planning and Article 4 directive page)
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.
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.
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 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’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.
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.
