Hmo

JencParker

I am an owner occupier of a four bedroomed house and have lived here for 30 years. I am thinking of renting a couple of bedrooms out as I am studying and my income has considerably reduced. If I rent out 2 of the spare bedrooms does that mean the property will be an HMO? If so, how different is that from just having one lodger. Thanks in advance for any advice.

anselld

Two lodgers is not HMO.
Three or more lodgers would be HMO.

Two lodgers does limit your PPR Relief from CGT, however if you have lived there for so long it is highly unlikely that would have any real impact any time soon.

JencParker

Thank you - I assumed as there would be three of us an HMO would apply. I've had one lodger before, but my son was still living here so it didn't apply. It will probably only be for a year and I don't plan on moving in the near future so hope CGT won't apply

G_M

LODGERS (Licencees/Excluded Occupiers)
A lodger (broadly) lives in the same property with a resident landlord & shares facilities. Unlike tenants, lodgers have few rights.

The Housing Act 1988 provides definitions of 'Resident Landlord' & 'same property' (S31 & Schedule 1 (10).

See:

LodgerLandlord (21 tips from solicitor Tessa Shepperson + General information site)

Landlordzone (Various articles on taking in lodgers)

Renting out rooms in your home (Government info)

Rent a Room Scheme (HMRC guide for tax-free income from lodgers)

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Houses in multiple occupation

Your home is a house in multiple occupation (HMO) if both of the following apply:

• at least 3 tenants live there, forming more than 1 household
• you share toilet, bathroom or kitchen facilities with other tenants

https://www.gov.uk/private-renting/houses-in-multiple-occupation