New Licensing rules for HMOs

With the new rules for licensing HMOs coming into effect on 1st October, maybe it’s time to repeat the post from 6 months ago on this subject.

The definition of a HMO will be changing, bringing an estimated additional 177,000 properties under the HMO rules, meaning they will also need licensing. Under the new rules any property which is occupied by five or more people, comprising individuals from two or more separate households – regardless of the number of storeys in the property – will be classified as a HMO.

If you own and let a property which will fall into this category, and haven’t already done so, you should apply for a licence before 1st October.

The actual legislation can be found Here

The good news is that ibmco can help raise finance and remortgages for shared letting properties whether a licence is needed or not. So please send us your enquiries. And for example we have access to Precise Mortgages exclusive products for HMOs and Multi-Unit properties offering among other things a 5 year fix with only 3 years tie-in. Contact Pav or David for details.