In the current uncertain market, Houses in Multiple Occupation (HMOs) may
be an attractive proposition as they can bring greater yields on investment
compared with the market average. However, HMOs are heavily regulated and
the financial penalties for non-compliance can be substantial. It is
important therefore that landlords and managers of HMOs are aware of the
regulations affecting HMOs.
There are different management regulations for landlords and managers of
HMOs in England and in Wales, different planning laws for HMOs in England
and Wales and different rules relating to mandatory licensing of large
New template documents, and a guidance note, have been created to assist
landlords of HMOs in Wales and other properties affected by a licensing
regime in Wales.
Councils are also cracking down on illegal HMOs and recent cases have
resulted in HMO Landlords having to pay fines to their local authorities
for being in breach of the regulations, either failing to have a licence
where one is required, or failing to comply with the licence conditions or
failing to comply with the management regulations. In light of this, there
has been a review of Guidance Notes: Houses in Multiple Occupation (HMOs)
and Licensing of Private Rented Properties (England) and Guidance Note:
Letting Property to Students. The review was done this month. All the
templates are periodically refreshed and modernised, to ensure they follow
best legal practice.
The contents of this Newsletter are for reference purposes only and do not constitute
legal advice. Independent legal advice should be sought in relation to any specific