Expert Letting Property Advice
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25th April 2008
Yes if our property is classified as a House in Multiple Occupation (HMO). From 6th April 2006 new legislation was introduced to ensure that sub-standard properties are no longer being let. Previously an HMO meant a group of bed sits, a hostel or rehabilitation centre, not a residence. The change in the 2004 Housing Act means rented property containing at least three unrelated individuals is now legally classifiable as an HMO – so you will need a license. However, licensing is at the discretion of local authorities, in most cases only properties with three or more floors and five or more tenants will be termed an HMO.
I would suggest your first stop is your local authority to find out how they view the HMO licence. If you ignore this, you could receive an enforcement notice through the letterbox with a demand to apply for a licence within 28 days – or cease renting.
Licences vary in price and you could pay anything from £400 to £1,000 depending on the area.
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