3 Friends Renting - HMO Required?

rowland93

I’m currently living with my partner and our closest friend, in a house way too small to be practical for the 3 of us. We’re looking at renting a considerably larger place together whilst we save for mortgages but have been running into barrier after barrier with HMO requirements and there doesn’t seem to be any genuinely clear advice online.

i understand the three of us form ‘2 households’ despite effectively living as siblings, however it’s unclear from browsing the web as to whether 2x households comprised of ONLY 3 people requires a specific HMO license, or if it simply comes down to the preference of the landlord to let to us. Can anyone help on this subject and is there any advice for - effectively - 3 friends trying to rent a house together?

Either way it seems nigh on impossible to find somewhere which isn’t listed as a ‘house-share’ who will rent to us despite positive references and strong financial backgrounds! ☹️

elsien

As far as I know, a mandatory licence is only required where there's 5 or more people  sharing facilities although local councils can add their own requirements so it seems unlikely that's the only reason you're not getting anywhere. Have you checked with the council about their HMO policy?
What reasons are you being given for being turned down?

rowland93

That’s correlates with I’ve seen online thus far; 5 occupants forming more than one household counts as a ‘large HMO’, whereas any more than one household being formed by any number of people creates a ‘HMO’ (not considered ‘large‘ before 5 occupants).

The reasons so far have simply been (direct quote) ‘Since you form two separate households, it would become a HMO meaning we cannot let to you, I’m afraid’. 

D.L

Yes, renting to 2 households of 3 people requires a landlord to have an HMO licence in a lot of councils. There's some additional paperwork and a cost to the licence (and probably some additional regulations but I'm not sure about these). I think especially for 2 bed properties (which I assume you're looking for), it's quite easy to find a small family, a couple who want a spare bedroom, or 2 individuals which all fall outside the definition of HMO, and so it makes sense to a lot of landlords to avoid the HMO issue altogether.

I think you need to just keep looking and hope you find something... sorry!

thenakedchef

There are different types of HMO Licence. 
Mandatory which means 5 persons or more incorporating 2 or more households. This is UK wide.
Additional which means 3 persons or more incorporating 2 or more households. This would be a scheme introduced by the local authority. This can cover certain wards within the authority or the whole authority area.
Selective which means all rental properties in the area require a licence. This would be a scheme introduced by the local authority.
You will find more information on the above on the local authority website of whether licensing schemes have been declared. 

But also 3 or more unrelated people in 2 or more households does class as a HMO for purposes other than licensing. There is further legislation placed on the landlord and often higher requirements for fire and amenity standards. This may put off a potential landlord as they would be required to upgrade their property.

Hope this helps a bit!

Fosterdog

How would it work in this situation if a couple rented a 2-3 bedroom house and then took in a lodger? Obviously the lodger wouldn't have the same rights as the tenants so their home would be less secure but would it still then be an HMO even if the landlord was unaware of the lodger? I'm only asking because a friend of mine has moved in with another friend and partner in a rental and reading this makes me worry that they could all be risking their home if they've unknowingly turned it into a HMO and they like their landlord so wouldn't want to cause any problems for him either. He is aware of the friend moving in but it is only a temporary situation (house purchase fell through but didn't want to pull of of house sale and didn't want to get tied into a fixed term tenancy of their own as they are still hoping to find a new place ASAP)

greatcrested

Start by looking at your local authority website. As explained, different LAs have different criteria (beyond the national rules). It may be that a neighouring LA (or even a neighbouring area within the same LA) would not require HMO licencing.

But yes, many LLs will want to avoid the necessity to apply for an HMO licence with all the associated costs and upgrades, soa LLwith a property in a neighbouring LA where HMO rules are less stringent may well consider you.

rowland93

Fosterdog said:

How would it work in this situation if a couple rented a 2-3 bedroom house and then took in a lodger? Obviously the lodger wouldn't have the same rights as the tenants so their home would be less secure but would it still then be an HMO even if the landlord was unaware of the lodger? I'm only asking because a friend of mine has moved in with another friend and partner in a rental and reading this makes me worry that they could all be risking their home if they've unknowingly turned it into a HMO and they like their landlord so wouldn't want to cause any problems for him either. He is aware of the friend moving in but it is only a temporary situation (house purchase fell through but didn't want to pull of of house sale and didn't want to get tied into a fixed term tenancy of their own as they are still hoping to find a new place ASAP)

Having spoken with a long-term Housing Officer today (turns out we had a family friend in high places!) albeit from a different Local Authority, it seems that yes - a lodger moving in DOES create a HMO. Dependant on the LA’s own restrictions, 3/4 unrelated people living together should warrant a fire door on a kitchen but not much else by way of adjustment. Sounds like most of the more strict rules of HMO apply when 5+ tenants are involved.