Update on the Landlord Licensing Scheme
The much-discussed mandatory landlord licensing schemes will apply to ‘shared housing’/Houses in Multiple Occupation (HMOs) only.
The new licensing scheme will extend the existing regime for HMOs, which currently applies to properties of three or more stories high, lived in by five individuals making up two or more households.
Therefore the definition of an HMO will change shortly to suit the new law.
For example, it may propose removing the “more than one household” test or including ‘beds in sheds’. The implication is that many landlords may find that their property has changed into a licensable HMO. A risk, however, is that the property may fit somewhere between HMO and regular rental property depending on how many people are living in it at the time.
We do not know when these changes will be discussed by the government, nor when they will be enforced. Needless to say we will respond to any significant changes quickly and keep you in the loop.