Houses in multiple occupation

Houses in Multiple Occupation (HMO) are generally houses split into bedsits, shared houses such as student houses or divided into some self-contained flats.

An HMO could be:

• A house or flat which is occupied by 3 or more people who form 2 or more households, and who lack or share basic amenities
• A house which has been converted entirely into bedsits or other non-self-contained accommodation, which is occupied by 3 or more people who form 2 or more households, and who share kitchen, bathroom or toilet facilities
• A converted house which contains a mix of self-contained and non self-contained accommodation (for example a flat within the house does not contain a kitchen, bathroom and toilet) and which is occupied by 3 or more people who form 2 or more households
• A building which is converted entirely into self-contained flats if the conversion did not meet the standards of the 1991 Building Regulations and more than one-third of the flats are let on short-term tenancies

To be an HMO, the property must be used as the tenants' only or main residence. Properties let to students and migrant workers will be treated as their only or main residence.

Mandatory HMO licensing

Landlords of some HMOs will need a licence from the council if the property meets the following criteria:

• occupied by five or more people, forming two or more households AND
• tenants share facilities such as kitchen or bathrooms

Purpose built flats will also come within the definition, where there are up to two flats in the block and one or both of the flats are occupied by five or more people in two or more separate households. This will apply regardless of whether the block is above or below commercial premises. This will bring certain flats above shops on high streets within mandatory licensing as well as small blocks of flats which are not connected to commercial premises.

It is the individual HMO that is required to be licensed and not the building in which the HMO is situated. This means that where a building has two flats and each is occupied by 5 persons living in 2 or more households, each flat will need a separate HMO licence.

If your property requires a licence, you must complete a licence application and submit the necessary certificates and payment. Once the application has been considered, a draft (or 'minded to') letter and licence will be granted. Assuming there are no representations, the final licence will then be issued approximately 3 weeks following the draft licence. An appointment will be made to inspect the property within the 3 year period and works may be required to bring the property up to standard.

Licences will be given if:

• the house is or can be made suitable for multiple occupation
• the applicant is the most appropriate person to hold the licence
• the proposed manager has control of the house and is the best person to be the manager
• the management arrangements are satisfactory

Fines and penalties

It is an offence:

• not to have a licence for a property that requires one
• to allow occupation of an HMO over the number of people permitted
• to fail to comply with any conditions of the licence

You could get an unlimited fine for renting out an unlicensed HMO or a fine of up to £5,000 for breaching a condition of the licence upon conviction (as at October 2018). Local authorities are also able to issue landlords with civil penalty notices of up to £30,000 per offence as an alternative to prosecution.

Rent repayment orders

A tenant living in a property that should have been licensed but was not, can apply for the First Tier Property Tribunal to claim back any rent they have paid during the unlicensed period (up to a limit of 12 months). Councils can also reclaim any housing benefit that has been paid during the time the property was without a licence.

Restrictions on termination of tenancies

Tenants living in a property that should have been licensed but was not, cannot be evicted by serving a section 21 Housing Act 1988 notice until such time as the HMO is licensed or a management order is in place.

Licensed HMO Public Register 

To request to view the Licensed HMO Public Register please contact envhealth@cheltenham.gov.uk

HMO Licence Fees

Fees from 1 April 2023

Part 1 of HMO licence application – submission, administration and authorisation

• £334.55 standard part 1 fee  

This must be paid upon submission of the HMO licence application.

Part 2 of HMO licence application – inspection, assessment and processing

• £500.95 standard part 2 fee

This applies to HMOs with five bedrooms or bed-living rooms only. The fee will be invoiced to the licence holder after the HMO licence property inspection.

• £50 additional fee for each bedroom or bed-living room where six or more
• £154.14 additional fee for all new applications, or renewal applications where any works are required, for example under related legislative requirements, management email, letter or notice; and/or any specific conditions are required to be complied with under paragraph ‘5.0 Specific Conditions’ to the HMO licence conditions

Discount for Part 2 HMO Licence Application:

£100.00 discount is available on the standard Part 2 fee for a fully complete HMO licence application submitted. This will be applied where we have not had to follow up or chase any documents in relation to the HMO application submitted, whether missing, incomplete or part complete.

For an application to be considered fully complete, we must have received all documents listed on the online application page. Documents need to be in good, legible and complete order.

Where a valid fully complete ‘renewal’ application is received after the expiry date of the existing licence, the discount will not be applied as this is a late application.

Apply for a new HMO licence

Please read the information on this page before launching and attempting to complete either the new application or renewal form.

Currently, there is no option to save part completed forms. The form will time out after 15 minutes of inactivity; therefore you will need to be prepared to complete and submit the form in one session and without long pauses.

To avoid losing your progress, before opening and completing the form, make sure you:

1. Have all the necessary documents to hand in electronic format

Please ensure you have the following supporting documentation ready in electronic format to upload in the form as part of your application:

• Signed “Fit and Proper Persons” declarations for all relevant people. We have additional Fit and Proper Persons declaration form for you to use:

Fit And Proper Person Questionnaire - pdf - 460 Kb

• Floor plan showing the use of each room - such as bedroom, kitchen, bathroom - and locations of smoke and heat detectors and fire door
• Gas installation - An original certificate showing that the gas installation and appliances have been inspected by a Gas Safe registered Inspector in the 12 months prior to this application (where supplied)
• Electrical Installation Condition Report - An original certificate showing that a competent person has inspected the electrical installation in the 5 years prior to this application
• Electrical appliances - An original certificate showing that the electrical appliances have been inspected by a competent person in the 12 months prior to this application (PAT certificate)
• Fire detection - An original certificate showing that the fire detection and warning system has been inspected, tested and serviced by a competent person in the 12 months prior to this application. This needs to comply to British Standard BS 5839 Part 1 and/or Part 6
• Emergency lighting - An original certificate showing that the emergency lighting (where installed) system has been inspected, tested and serviced by a competent person in the 12 months prior to this application. This needs to comply to British Standard BS 5266.
• Tenancy agreement - A sample copy of the written terms for tenants

Submitting all of the above documentation will ensure your application is processed as quickly as possible.

2. Notify the required people

You must let certain people know in writing that you are going to make an application or give them a copy of it after submission.  For each person there will be separate declarations in the application form that you will need to complete to declare that you have notified them.

The people who need to know about it are:

• any mortgage lender for the property to be licensed
• any owner of the property to which the application relates (if that is not you), for example the freeholder and any head lessors who are known to you
• any other person who is a tenant or long leaseholder of the property or any part of it (including any flat) who is known to you other than a statutory tenant or other tenant whose lease or tenancy is for less than three years (including a periodic tenancy)
• The proposed licence holder (if that is not you)
• The proposed managing agent (if any and if that is not you)
• Any person who has agreed that they will be bound by any conditions in a licence if it is granted

You must tell each of these people:

• your name, address, telephone number and email address or fax number (if any)
• The name, address, telephone number and email address or fax number (if any) of the proposed licence holder (if it will not be you)
• Whether this is an application for a property licence under Part 2 or 3 of the Housing Act 2004
• The address of the property to which the application relates
• The name and address of the local housing authority to which the application will be made
• The date the application will be submitted

 3. Have a credit or debit card ready to pay the application fee 

The final step of the application form is to pay the licence application fee. Your application will only be submitted upon successful payment of the licence application fee, so please have a credit or debit card handy to pay the fee.

Apply online

What happens next

You will be notified in writing if there is anything missing from your application or any additional information is needed. Once we have a valid application you will be contacted and we aim to decide your application within 16 weeks of receipt of a complete/valid application.

You cannot assume that the licence has been automatically granted if the 16 week period has passed. It is in the public interest that we process your application before it can be granted. If we are unable to come to a decision within 16 weeks, we will contact you with further advice.  

The licence for your HMO is valid for a maximum of three years and you will need to apply for another licence before the current one expires. The council will not send a reminder it is your responsibility to apply for a new licence.

Apply for renewal of and existing HMO licence

You will only be able to use the renewal form if no material changes have occurred to the property. Please read the list of what we consider to be material changes in the dropdown section below.

If any other changes have occurred to the property, you will need to state these in the text box at the end of the form.

Completing the application

To complete the licence renewal application form, you will need your licence and renewal reference numbers. Examples of these are:

• Renewal reference: O6P4TPWL0CE00
• Licence reference number: 16/000/HMO

These will be displayed in your licence renewal reminder which will be emailed to you two months before your licence expiry date.

Please ensure you have the following supporting documentation ready in electronic format to upload in the form as part of your application:

• Signed “Fit and Proper Persons” declarations for all relevant people. We have additional Fit and Proper Persons declaration form for you to use:

 

Fit And Proper Person Questionnaire - pdf - 460 Kb

• Floor plan showing the use of each room (new applications only)
• Gas installation - An original certificate showing that the gas installation and appliances have been inspected by a Gas Safe registered inspector in the 12 months prior to this application
• Electrical Installation Condition Report - An original certificate showing that a competent person has inspected the electrical installation in the 5 years prior to this application
• Electrical appliances - An original certificate showing that the electrical appliances have been inspected by a competent person in the 12 months prior to this application (PAT certificate)
• Fire detection - An original certificate showing that the fire detection and warning system has been inspected, tested and serviced by a competent person in the 12 months prior to this application. This needs to comply to British Standard BS 5839 Part 1 and/or Part 6
• Emergency lighting - An original certificate showing that the emergency lighting system (where installed) has been inspected, tested and serviced by a competent person in the 12 months prior to this application. This needs to comply to British Standard BS 5266
• Tenancy agreement - A sample copy of the written terms for tenants

Submitting all of the above documentation will ensure your application is processed and validated as quickly as possible. 

Important notes for renewal applications

1. The discount will only be granted on the Standard part 2 fee for a fully complete HMO licence application submitted. This means we have not had to follow up or chase any documents in relation to the HMO application, whether missing, incomplete or part complete
2. Where a valid fully complete renewal application is received after the expiry date of the existing licence, the discount will not be applied as this is a late application
3. Where a renewal application is received after the expiry date, we will need a valid fully complete new application to be submitted. In this case, the additional fees for a new application will be applied to the Part 2 fees (£154.14 additional fee for all new applications)

Cost

The HMO licence fee in Cheltenham has changed. The fee is now split into two payments.

• Payment one is paid when an HMO licence application is submitted
• Payment two is due after the inspection

A licence lasts for three years.

Renew online

Fines and penalties

It is an offence:

• not to have a licence for a property that requires one
• to allow occupation of an HMO over the number of people permitted
• to fail to comply with any condition of the licence

You could get an unlimited fine for renting out an unlicensed HMO, or a fine of up to £5,000 for breaching a condition of the licence upon conviction (as at October 2018). Local authorities are also able to issue landlords with civil penalty notices of up to £30,000 per offence as an alternative to prosecution.

It is your responsibility to comply with the law.

Material changes

You can use the renewal form only if none of the following criteria have changed:

Age of property

The approximate age of the original construction of the HMO or house. The categories are: before 1919, 1919-45, 1945-64, 1965-80 and after 1980).

Type of HMO or house

The type of HMO or house for which the application is being made. The categories are:

• House in single occupation
• House in multiple occupation
• Flat in single occupation
• Flat in multiple occupation
• A house converted into and comprising only of self-contained flats
• A purpose built block of flats
• Other

Other properties which you hold a licence for

Details of other HMO or houses that you hold a licence for under Part 2 or 3 of the Act in Cheltenham borough or in any other local housing authority area.

Further information

The following information about the HMO or house for which the application is being made except for applications in respect of a section 257 HMO:

• the number of storeys comprising the HMO or house and the levels on which those storeys are situated
• the number of separate letting units
• the number of habitable rooms (excluding kitchens)
• the number of bathrooms and shower rooms
• the number of toilets and wash basins
• the number of kitchens
• the number of people occupying the HMO or house
• details of fire precautions equipment, including the number and location of smoke alarms
• details of fire escape routes and other fire safety information provided to occupiers
• a declaration that the furniture in the HMO or house that is provided under the terms of any tenancy or licence meets any safety requirements contained in any enactment
• a declaration that any gas appliances in the HMO or house meet any safety requirements contained in any enactment

Where the application is being made in respect of a section 257 HMO:

• the number of storeys of the HMO and the levels on which those storeys are situated
• the number of self-contained-flats and, of those, the number
  • that the applicant believes to be subject to a lease of over 21 years; and
  • over which they cannot reasonably be able to exercise control
• in relation to each self-contained flat that is not owner-occupied and which is under the control of or being managed by the proposed licence holder, and in relation to the common parts of the HMO:
  • details of fire precautions equipment, including the number and location of smoke alarms
  • details of fire escape routes and other fire safety information provided to occupiers; and
  • a declaration that the furniture in the HMO or house that is provided under the terms of any tenancy or licence meets any safety requirements contained in any enactment; and
• a declaration that any gas appliances in any parts of the HMO over which the proposed licence holder can reasonably be expected to exercise control meet any safety requirements contained in any enactment

If any of these changes have occurred, please use the new licence application form.

Facilities in an HMO

An HMO must have adequate facilities for everyone living there.

They must have:

• adequate facilities for storage, preparation and cooking of food, including sinks with hot and cold water supplies
• sufficient suitably located toilets
• adequate number of suitably located baths or showers and hand-wash basins, each with satisfactory supplies of hot and cold water

By rule of thumb, one complete kitchen and bathroom is required for every 5 occupants that share the accommodation. Please download the guide below for more information:

 

Amenity And Room Size Standards For HMO S Updated Sept 24 - pdf - 171 Kb

 

HMO management regulations

All properties - whether they are non-licensable or subject to mandatory HMO licensing - are covered by management regulations. 

These regulations, produced by the government, require anyone who manages an HMO to observe proper standards of repair, cleanliness and maintenance throughout the property.  The regulations cover:

• water supply and drainage
• parts of the house and installations in common use
• living accommodation
• windows and other ventilation
• escape from fire and apparatus and systems for fire precautions
• general safety of residents

Non-compliance with the management regulations can result in fines of up to £5,000 upon conviction (as at October 2018). Local authorities are also able to issue landlords with civil penalty notices of up to £30,000 per offence as an alternative to prosecution.

Certain blocks of flats

Certain types of property are covered by the following regulations: The Houses in Multiple Occupation (Certain Blocks of Flats) (Modifications to the Housing Act 2004 and Transitional Provisions for section 257 HMOs) (England) Regulations 2007 on legislation.gov.uk.

• A converted house which contains a mix of self-contained and non-self-contained accommodation. For example a flat within the house does not contain a kitchen, bathroom and toilet. And occupied by 3 or more people who form 2 or more households
• A building converted into self-contained flats. Where the conversion did not meet the standards of the 1991 Building Regulations. More than one-third of the flats are let on short-term tenancies

 

 

Housing Health and Safety Rating System

Housing standards in all HMO’s are also assessed using the housing health and safety rating system (HHSRS) under the Housing Act 2004. The HHSRS is a risk assessment approach which considers whether defects identified within a property affect the health and safety of the occupants of that property. It is applicable to all owners and landlords, including social landlords.

Fire safety

Landlords of all rented housing must make sure the risk from fire is minimised. There is a significant risk of fire in houses in multiple occupation (HMOs). We therefore require owners to provide adequate means of escape from fire and adequate fire precautions and we have the power to enforce this.

All occupants of an HMO should be able to leave the premises safely in the event of a fire.  Measures must be put in place to prevent the spread of fire and smoke to living areas or escape routes before the occupants have been able to exit the building.  There must also be adequate warning systems in which help to ensure occupants receive sufficient warning of a fire to make their escape before escape routes become impassable.

The LACORS ‘Housing – Fire Safety’ guide provides guidance on fire safety provisions for certain types of existing housing and can be used to assess what is reasonably required in each property. 

LACORS national fire safety guidance for housing (PDF 1MB / 82 pages)

Relatively simple systems will be satisfactory for smaller low risk premises, but larger houses and HMOs will need to have a more sophisticated system. All systems must comply with BS 5839: Parts 1 and 6.

We would typically expect to find the following precautions:

• heat detectors and fire blankets in the kitchen
• interlinked smoke detectors within the hallway, stairs and landing
• interlinked smoke detector in the living room
• direct access from the bedrooms on to the hallway/landing (means of escape) or suitable secondary means of escape
• thumb turn lock on main exit door to allow exit at all times
• fire doors are recommended for kitchen doors and may be required to all doors in larger 3 plus storey HMOs.  Well fitted and constructed solid doors may be acceptable in smaller 2 storey HMOs

‘Inner’ rooms

Bedrooms and living rooms should ideally exit directly onto a hallway which leads directly out of a property. However any bedrooms accessed via living rooms or kitchens are known as ‘inner rooms’ and in these cases there must be a satisfactory alternative means of escape from these rooms.

Smoke detection

Smoke and heat detectors must be interlinked (radio linked is acceptable) and should be hard wired into the property.  For smaller, low risk HMOs it may be acceptable to use 10 year battery-sealed smoke detectors as long as they are interlinked.

Fire fighting equipment

There are no longer requirements to have fire-fighting equipment in HMOs. The advice is to evacuate the building to a place of safety and call the fire and rescue service.

The Regulatory Reform (Fire Safety) Order 2005 introduced duties in relation to the common areas of HMOs and blocks of flats. 

The duty is placed on the “responsible person” who is required to:

• carry out a fire risk assessment
• take action in regard to reducing the risk of fire

The extent of fire safety measures required will depend on the design, layout and use of each individual property.

Electrical safety

Electrical inspections and testing guide

The vast majority of landlords are committed to providing good quality homes that are safe and secure. That is why over three-quarters of landlords already have a qualified person perform an inspection of the electrical installations in their properties even though there is not a legal requirement to do so.

Nevertheless, as of 1 July 2020, the rules in England changed to introduce new standards of electrical safety as well as legal requirements on the service of documents to relevant people. 

What are my responsibilities as the landlord of a property in England?

The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 places a continuous duty on landlords in England to maintain their property to the electrical safety standards and to have evidence of this. This means your property must meet the 18th Edition of the Wiring Regulations and you must have a report, such as an Electrical Installation Condition Report (EICR) that shows this from a qualified person.

My property was deemed safe during an inspection under the previous Wiring Regulations. Do I need to get a new EICR or perform works to bring the property up to the 18th Edition standards even if my property is safe?

The government has published this guidance which confirms that EICRs performed prior to the 18th Edition but less than five years old will be considered valid for the purposes of this regulation.

In addition to this, the guidance is clear that further work will only be required where the inspection demands further remedial or investigative work. If the certificate only recommends improvements (classification code C3) this is considered best practice but not a requirement. 

When do I need to have an inspection performed by?

If you are renting out a property in England and the tenancy was entered into on or after the regulations came into force (1 June 2020), then from 1 July 2020 you will be required to have an electrical inspection and a report on the condition of the property (EICR) performed by a qualified person.

Renewals in this case include statutory periodic tenancies that are created at the end of a fixed term on or after this date.

For pre-existing tenancies, you will need to have an EICR performed on all existing tenancies before 1 April 2021.

If you have a lodger or you are letting out the property on a long lease (7 years or more) you are not required to have an EICR performed.

Who do I need to give copies of the EICR to?

The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 set out a number of different requirements around providing copies of the EICR to relevant people:

1. The EICR must be given to all of the tenants before they occupy the property.
2. When you replace the EICR you must provide them with a copy of the new report within 28 days of the inspection.
3. If a tenant requests a copy of the EICR in writing, you must also provide them with one within 28 days.
4. Where the local authority requests the EICR you must provide them with a copy of it within seven days or face potential penalties.
5. Any prospective tenants who request a copy in writing must be provided one within 28 days.

How often do I need to replace the EICR?

The standard EICR lasts 5 years but this can be shorter so you should replace it as often as needed to ensure it remains valid.

My EICR has indicated a potential breach of the electrical safety standards. What do I do next?

If a breach, or a potential breach, of your duty has been identified you need to have a qualified person either perform the work or investigate further within 28 days. This time limit can be shortened if the report recommends it so you should ensure you are complying with the time frame in the report itself.

Once this has been done you need to ensure you receive a written report from the qualified person as quickly as possible. This report needs to state that the electrical safety standards are now being met or that further remedial work is required.

It is at this stage, within 28 days of the work or investigation being carried, that out you must provide the written confirmation as well as a copy of the report to all of the tenants and the local authority at envhealth@cheltenham.gov.uk. Do not send the information to the local authority before this time.

Where the follow up investigation recommends further work being done, you must repeat the steps above until the property meets the electrical safety standards.

What is a qualified person?

The qualified person is someone who is competent to perform the inspections or the works.

The simplest way of identifying a competent person would be to refer to someone with the qualifications laid out in the recent update to the Electrotechnical Assessment Specifications. This includes people with industry recognised apprenticeships or Level 3 Certificates in Level 3 Certificate in Installing, Testing and Ensuring Compliance of Electrical Installations in Dwellings.

Can I self-certify the property?

If you are qualified to check installations to the 18th Edition of the Wiring Regulations and provide a report on it then yes you should be able to self-certify. However, if there are any issues with the property upon inspection by a local authority you would likely be in a worse position than someone who had a qualified person perform the inspection for them.

What enforcement action can be taken if I do not comply with the regulations?

The local authority is responsible for enforcement and we have a number of powers to act on this.

Firstly, we can issue civil penalties of up to £30,000 per breach of these regulations.

Secondly, where we have identified non-urgent work we must serve the landlord a notice detailing the work required and giving him 28 days to perform the work. The landlord may make representations to this within 21 days of the notice being served. If you do then the local authority must respond to these representations within seven days. Until we respond the requirement to perform the work is suspended.

Finally, if we, the local authority, are satisfied the landlord is in breach and we have the tenant's permission to do so, we may perform emergency remedial work on the property and bill you for any costs incurred.

How can I submit information to the local authority, if I need to?

You, or your agent, can send it to envhealth@cheltenham.gov.uk.

Please note: Only send certificates relevant to property addresses within the borough of Cheltenham. Certificates for a property address outside Cheltenham borough must be sent to the authority relevant to it.

Planning legislation and building regulations

In addition to the Housing Act 2004, the Building Regulations 2000 (as amended) and the Town and Country Planning Act 1990 may also apply to houses in multiple occupation. 

As a general rule, HMOs with seven or more occupants require planning permission, but any changes to the HMO, such as conversions and provision of additional amenities, may be subject to planning permission, building regulations and conservation requirements.

As each HMO is individual, it is recommended you contact the appropriate department to ensure your property complies with the necessary legislation.

Article 4 Direction

In 2019, the council's Cabinet approved the making of an Article 4 Direction affecting the St. Paul’s ward. This direction will remove permitted development rights for developments involving a change of use of a dwelling (use class C3) to a House in Multiple Occupation (use class C4). This means that planning permission will be needed before starting a development of this nature.

The direction came into force 11 June 2020.

Download a copy of the direction, including a map defining the area covered:

 

Article 4 Direction St Pauls HMOs - pdf - 2.04 Mb