What is Additional Licensing? A Guide for HMO Compliance

Understanding Additional Licensing for HMOs

As a landlord or property owner in the UK, you may have heard of the term “Additional Licensing” and wondered how it affects you. The government and local councils have introduced several regulations to ensure safe and well-maintained homes. One such regulation is Additional Licensing, specifically designed for Houses in Multiple Occupations (HMOs).

In this guide, we’ll explain what Additional Licensing is, how it affects HMOs, and the requirements you must meet to ensure compliance. Whether you’re a seasoned landlord or just starting out, understanding these regulations is crucial to managing your rental properties effectively.

What is Additional Licensing?

Additional Licensing is a scheme introduced by local councils in the UK to regulate Houses in Multiple Occupation (HMOs) that are not covered by the mandatory HMO licensing scheme. Under Part II of the Housing Act 2004, local authorities can impose this scheme to ensure that properties meet health and safety standards. licensing is aimed at improving the condition of HMOs, preventing overcrowding, and protecting tenants.

When is Licensing Applied?

Local councils introduce Licensing schemes when a significant number of HMOs in their area are found to be poorly managed. The goal is to improve living conditions for tenants and reduce issues such as anti-social behavior, overcrowding, and disrepair. This scheme can be applied to a specific area or borough, and it may not necessarily apply to all HMOs in the region.

How Does Additional Licensing Apply to HMOs?

An HMO is a property rented out by at least three tenants who form more than one household, and they share basic amenities like a kitchen or bathroom. If you own such a property, it may fall under the mandatory HMO licensing requirements. However, Additional Licensing applies when the council identifies problems with HMO management in their area.

If a council finds that a neighborhood has many poorly managed HMOs, it may introduce a licensing scheme. This means your property might need an Additional License, even if it doesn’t meet the mandatory licensing requirements (which apply to properties with five or more tenants).

How to Determine If Your Property Requires Licensing

To find out if your property is affected by Additional Licensing, you must first determine whether your property is classified as an HMO.

According to the government’s definition, an HMO is a property with three or more tenants from different households who share amenities like the kitchen, bathroom, or toilet. After confirming your property is an HMO, check with your local council to see if licensing applies.

Different councils may have different requirements for Licensing. For example, in Newham, all HMOs are subject to Licensing, whereas in other areas, the scheme may only apply to properties that are two or more storeys high and occupied by four or more tenants.

Exemptions from Additional Licensing

While the Licensing scheme applies to most HMOs, certain exemptions may apply depending on the local authority. Some of the statutory exemptions include:

• Properties that already require a mandatory HMO license.
• Properties where the owner resides with no more than two additional tenants.
• Properties occupied by fewer than three tenants from different households.
• HMOs managed by the local council or a registered social landlord.
• Properties designated for religious or educational use, such as a religious community or student halls of residence.

It’s important to consult your local council to determine whether any exemptions apply to your property.

Benefits of Licensing for HMOs

While Additional Licensing may seem like an added burden, it offers several benefits for both landlords and tenants. Some of the key advantages include:

1. Improved Property Conditions: Local councils use Additional Licensing to ensure that HMOs meet certain safety standards, including fire safety, electrical safety, and proper sanitation.
2. Tenant Protection: The scheme aims to protect tenants by ensuring that landlords provide safe, habitable living conditions. By complying with the regulations, you help prevent overcrowding and unsafe living environments.
3. Increased Demand for Well-Managed HMOs: Landlords who comply with Additional Licensing regulations often find that their properties are more attractive to tenants. Properly maintained HMOs are in high demand, which could lead to higher rental yields.
4. Reduced Risk of Fines: Non-compliance with Additional Licensing regulations can result in substantial fines, so following the rules will help you avoid these penalties.

How to Apply for Additional Licensing

If your local council has implemented an Additional Licensing scheme, you’ll need to apply for a license to ensure your HMO is compliant. The process usually involves the following steps:

1. Check if Additional Licensing applies to your area: Contact your local council or visit their website to confirm whether your property is subject to the scheme.
2. Submit your application: If Additional Licensing applies, you’ll need to complete an application form, provide relevant documents, and pay a fee. Documents may include details of the property, the number of tenants, and information about your management practices.
3. Comply with regulations: Once you’ve obtained your license, ensure that your property complies with all the required health and safety standards. This may involve making improvements to the property, such as installing fire safety measures or ensuring that the property is in good repair.
4. Renew your license: Most Additional Licenses are valid for five years, after which they need to be renewed. Keep track of the renewal date and submit any required documentation to maintain your license.

Frequently Asked Questions