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View Full Version : Does owner-occupier need HMO licence for letting?



Maruca
08-04-2006, 18:00 PM
After scoring trough regulations I am still confused about new regulations.

I have a Victorian house which was divided in four flats in around 1984 - with not plans. My family and I occupy 2 of the flats (which are not renovated) and let out the other 2. which have been updated to more or less comply with the 1991 building regulation, but it is difficult for me to assess that and would need the help of someone. But whom,, Architect?? Surveyor ?? Council Official ?? …and at reasonable cost …I am not sure.
Also as my family and I occupy half of the building (more that the “less than two thirds of owner occupier” to be exempt ) would the council be allowed to enter my home and/or request that I update my living accommodation??
Can any one please advice me??

red40
08-04-2006, 19:50 PM
No license required unless additional or selective licensing is in place, however it will be classed as a HMO under Part 1 of the Act and therefore HHSRS can be applied, although it would be looked at as a low risk property.

Maruca
11-04-2006, 10:37 AM
Thank you for your advice. I have been informed that Flats in a HMO building would have a lower market value. Which I believe, as tenants say they would not like to live in a HMO building.
Have know given notice to tenants in one flat and will explore either get a retrospective planning application or sell one flat.
I am still uncertain if after exercising either of the above options my property would be exempted from HMO Licensing.
I understand that the government should protect the public, but perhaps the new legislation is to harsh on responsible Landlords “modestly” like me. I have not been a Landlord for long but my tenants get a five star service at a lower market rent. And as I live in the property the service sometimes is a 24/7 service.
Perhaps it would be less stressful -and more profitable- to sell up and move my “pension” to other activity. At present I am getting a yield of under 3 pc. While some shares are given a 19pc return!!

soo
11-04-2006, 10:58 AM
i don't understand. why have you had to give notice to one of your tenants?

what makes you believe flats in hmos have lower rental value? here almost every rental flat, excl the new build ones, have now become hmos.

your building is an hmo, but does not yet need a licence.
it is exempt from mandatory licensing as a section 257 hmo. your council may later decide to impose additional or selective licensing on such hmos, but it will have to consult about this.

retrospective planning permission would not prevent the building becoming an hmo/or revert it to non hmo status. only building works to make all the flats, and their conversion from a house, comply with 1991 building regulations, can remove this status.

if you sell one flat, the building could still remain an hmo if the new owner decides to rent it out.

my local council has still not yet managed to produce any info on the subject, but promise that some time this week [next week, next year??]they will be able to provide application forms for hmo licensing, which will contain the full list of exemptions to licensing. so i would suggest you try your local council, and also see if they are holding any public meetings to inform landlords.

hope this helps

soo