HMO - new rules

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brightncheerful
2 Lemon pips
Posts: 225
Joined: November 4th, 2016, 4:00 pm

HMO - new rules

Postby brightncheerful » December 6th, 2016, 12:58 pm

Following a consultation to extend the reach of HMOs, coming into force in April 2017 will be a mandatory requirement for flats over business premises to be licensed for HMO to flats above and below business premises (regardless of storeys).

According to consultation document, if the answer to each of the questions below is yes, then the residential part of the building needs a mandatory licence. If the answer to any of the questions is no then the property is not subject to mandatory licensing.

Q: Is there non self-contained living accommodation or such accommodation which lacks any basic amenities above or below a shop or other commercial premises, (regardless of whether there may also be self-contained flats in the block)?

Q. Are there five or more people in at least two separate households occupying the living accommodation?

Q. If so would the residential part of the building meet the shared building or non self-contained living accommodation tests above (had it been a residential building)?

Examples given:

A purpose built fish and chip shop with residential accommodation above which the owner lets out as 5 bedsits, with shared use of kitchen and bathroom. Licensable because it is occupied by at least 5 people in at least 5 households, who share basic amenities

Self-contained flat above 24 hour kebab shop. At least 6 occupiers sharing 3 bedrooms plus living room. All employed in the business and none pay rent. Licensable because there are 6 occupiers sharing facilities. The fact that rent isn’t paid is not relevant because their occupation of the property is linked to their employment.

A 3 storey purpose built block of flats above a parade of shops comprising 10 self-contained flats. Five of those flats have been let out by their owners and 3 are in multiple occupation, all with at least 5 persons living in 2 or more separate households. Not licensable because mandatory licensing does not apply to purpose built blocks with 3 or more self-contained flats.


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This may be wrong but I'd interpret a yes requirement to shop and living accommodation where the residential is ancillary to the shop, rather than self-conntained. Where the shop has self-contained flat above (the flat having its own separate entrance), would need to be licensed if the shop also has a door from inside the shop direct into the hallway for the residential flat would negate the self-contained exclusion I don't know.

tieresias
Posts: 28
Joined: November 4th, 2016, 8:25 pm

Re: HMO - new rules

Postby tieresias » December 20th, 2016, 8:27 pm

How do you go about buying such properties? If I can find one where it makes sense to buy, I am interested in a parade of shops on the ground floor and some flats upstairs.


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