The point, of course, is that HA 2004 has introduced a wider-ranging definition of what constitutes an HMO. The ‘standard test’ covers most buildings that are HMOs and will include typical bedsit accommodation or shared houses or hostels. The building must consist of one or more units of accommodation not consisting of self-contained flats. It must be occupied by people who do not form a single household, and be the occupiers’ only or main residence. Rent must be payable, and there must be some element of sharing between households of one or more of the basic facilities (lavatory, personal washing, cooking), or alternatively one of those facilities must be lacking. Note that this ‘standard test’ can include self-contained flats.

At the same time, it is important to check that a property is not in an area designated by the LA for selective licensing (under Part III HA 2004). If so, then a property will be an HMO if the whole of the house is occupied either under a single tenancy, or under two or more tenancies in respect of different dwellings within it. In essence, this is designed for areas that suffer significant and persistent anti-social behaviour, and where typically many of the properties will have been bought up by speculative Ls (rather than owner-occupiers). The point, of course, is that if an area is designated in this way (often student areas) then this may have important implications for a buy-to-let purchaser. Accordingly, always consider optional enquiry 10 (on CON 29O) which will reveal whether the property is currently registered as an HMO, or is in an area (actual or proposed) for selective licensing. © Practical Lawyer