Legal Compliance in HMO Management

Unlicensed HMO fines

A Landlord husband and wife have been ordered to pay £141,000 in fines for serious safety and licensing violations of their HMO in London.

The case highlights the importance of landlords fully understanding their legal responsibilities and duties under the HMO Regulations. Landlords must ensure properties meet safety standards and are legally compliant, or face severe penalties. 

The Council Tax (Chargeable Dwellings and Liability for Owners) (Amendment) (England) Regulations 2023

Previously, local authorities could classify each room in an HMO as a separate unit, making each liable for council tax. Under the new regulations, HMOs are treated as a single dwelling for council tax purposes. The responsibility for paying council tax falls on the HMO owner, not the tenants. 

If an HMO is rented out on a room-by-room basis, the landlord is liable for council tax. If the property is let under a single agreement to multiple tenants, then the tenants are responsible.  Self-contained flats are excluded from the new regulations. 

Selective Licensing Schemes

In addition to mandatory and additional licensing for HMOs, landlords should be aware that local authorities may introduce selective licensing schemes in certain areas. 

It is essential to verify whether such schemes apply to your property, as failure to comply can lead to substantial penalties, and in severe cases, the local housing authority may issue an interim management order. 

There are a range of documents in the Property folder to help guide landlords with their understanding and management of HMOs.