Houses of Multiple Occupancy are often lucrative ventures for British landlords. They can have the potential to bring in yields that can’t be matched by standard buy-to-lets. But you may already be aware that since October 1st new rules and regulations have effected HMOs, as well as property owners who previously would not have been considered HMO landlords.
The changes affected around 177,000 homes in the UK according to the Residential Landlords Association and a HMO is now defined as any property occupied by five or more individuals who are from more than one household and not related to each other. But have the changes affected you?
So what else has changed?
It no longer matters how many storeys a house has. Previously, only houses with three or more storeys were considered HMOs but now a house with any number of storeys can be classified as a HMO. Because of this change you might now be a HMO landlord without even knowing .
There have also been changes to the minimum room sizes too. Rooms used for sleeping one adult must be no smaller than 6.51 square metres and 10.22 square metres for two adults.
Another change implemented was around waste management. Each HMO must now have an appropriate area outside for the occupiers to store waste.
These changes have given your local authority greater power over housing in your area so it is important you are aware of the changes and how they affect you.
If you are a HMO landlord then the new regulations could impact you. You may need to remortgage or raise capital from your properties to make some changes in order for them to meet the new regulations or potentially face a hefty fine of up to £30,000.
If you’re a HMO landlord, or a landlord that thinks you may now own a HMO due to the licensingchanges, contact your adviser today to talk through your options.