• 1. exclusions: does one of the L exclusions apply (eg the property is managed by a HLA; residential social L; police, fire or health authority; student accommodation managed by an educational establishment; occupied by a religious community; occupied by only two persons who do not form a single household (ie flatsharers); predominantly owneroccupied, including resident Ls where the owner-occupier lives with no more than two lodgers);
• 2. number of households: it is important to look at the number of separate households, rather than the actual number of Ts. One household will comprise families; cohabiting couples; or single people. A property is an HMO if it is occupied by more than one household, and two or more households share a common amenity (eg bathroom or kitchen). Since buildings occupied by two single people who are not related (ie twoperson lets) are excluded, it follows that virtually any flat or house rented out to three or more single people who share amenities will qualify as a ‘household’.

As a separate point, it should be remembered that, if the building is comprised entirely of self-contained flats, of which less than two-thirds are owner-occupied, L must also consider whether the building complies with Building Regs 1991. In practice, calculating the number of households can be problematic, especially if it is unclear how individuals are related, or if the tenancies are subject to a high rate of change.

If a house does qualify within the above definition of a HMO, only those with three or more storeys (and occupied by five or more people, consisting of two or more households) must be licensed under the mandatory licensing scheme. For other HMOs, the local housing authority has discretionary power as to whether they will require a license. Note: when deciding whether a building is three storeys or greater in height, floors given over to nonresidential use can be included (eg a ground-floor shop). This chart summarises the licensing requirements:

Source: Lovells.  © Practical Lawyer