Ls letting HMOs of three or more floors (including basements, attics and floors used commercially), with five or more people living in them (sharing a bathroom or kitchen), must apply to the LA for a mandatory licence. This in turn requires minimum standards (eg bathrooms, toilets, cooking facilities) to be in place.

The occupants must be living in two or more households, and, for the purposes of licensing, a household comprises any Ts who are members of the same family living together, including couples (whether or not they are married, relatives, adopted children or foster children). A group of friends sharing a house will not be a single household. In general terms, a HMO means a building, or part building, which is occupied by more than one household and in which more than one household shares an amenity. There are exceptions, so the following will not come within the scope of the legislation:

• two-person flat shares;
• buildings occupied by a resident L with up to two Ts;
• buildings managed or owned by a public body, local housing authority, or registered social L;
• student halls of residence.

A failure to register can result in a fine, and also it may result in the LA taking over management (plus rent will not be recoverable). Accordingly, these are important provisions and any L involved in letting has to be familiar with the wide scope of these important provisions. Bear in mind also that LAs can have a discretion to widen the scope of the definition of what amounts to a HMO, so that other properties within specified local areas can come within the scope of the legislation.  © Practical Lawyer