HMO and section 21

Landlord Discussion
1

So I got 2 question here.

HMO - so is it right to understand that 1 couple and 1 friend in a 2 bed, that is 3 people 2 household so that is a HMO. BUT if it is 1 friend and another 1 friend then it is normal. So… the stupid difference is 1 friend to be a couple or not to create all the fuss about getting HMO license. Am I right saying that or am I missing something?

Section 21 - hearing the news lately and just want to confirm, we can still section 21 as of now. The news was just saying people are looking to getting rid of it and haven’t even reached the point putting into practice to make it illegal?

Suggestions appreciated!

2

Yes, that is correct with regard to HMOs. A 3 or 4 person HMO is only licensable if the Council have introduced an Additional Licensing scheme.

S21 is still avavilable and will be for a while yet.

If you have a licensable HMO and are planning to evict the tenants, you should know that you could not enforce a s21 notice if the tenants dont leave until you rectify the licensing situation. You could try asking the Council for a temporary exemption notice, which would allow you to use a s21, but they might not grant it.

3

Thanks for the info Dave. Crikey… the regulation is a total nightmare. so now 2 bed can only fit 2 individual friends, it cut the 2 bedroom demand by quite a bit it seems.

4

Yes, a family let or 2 friends. You have to be careful with 2 friends also as this would become an HMO if one of them moves their oartner in.

5

What about if one of them moves their partner in but doesn’t tell the landlord and the partner is not part of rental agreement?

6

Its not the number of tenants that counts, its the number of occupants.

The landlord would be expected to have a prohibition on subletting/taking in lodgers and a regular and frequent inspection regime to pick up on any breaches in order to have any acceptable excuse. Even then, if it became an HMO, the Council would ask the landlord to apply for a licence and sue the tenants if the want to recover the licence costs. The landlords insurer wouldnt care that it wasnt the landlords fault and would probably void the insurance. Likewise any superior landlord is unlikely to be sympathetic if the HMO breached the lease or any covenants on the property.

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7

Is HMO required if there are one tenant and two live in landlord? It seems to me that HMO is reqired as there are three occupants.

8

Not if the landlord(s) own the property. There is an exemption allowing landlords and their family up to 2 lodgers without the property becoming an HMO.

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