In my 21 days of tips, I discussed whether taking in lodgers could create an HMO on day 7.  However since then the planning law has changed.  If you take in more than two lodgers your property may need planning permission.

The background to this change in the law, is the numerous complaints to MPs and ministers about ‘studentification‘ in various parts of the country.  This is where a particular area, generally within walking distance of a college or University, is used largely for student housing.  This will generally be normal houses converted into student homes, with up to six or more students sharing a property.

This creates problems for the ‘normal people’ living nearby – loud parties, properties not being looked after properly, local shops and pubs losing trade when they all go home in the holidays, that sort of thing.  Apparently this type of problem is only severe in a relatively number of locations.  However local residents in those areas are vocal and Something Had to Be Done About It.

The thing which was done, was to change the planning rules, to require planning permission to be necessary if a property is used in a way which complies with the definition of an HMO, ie three or more unrelated people sharing a property.

In the Day 7 post I discussed the implications of a property coming within the HMO definition.  All of these properties will be bound by the management regulations, and some of them will need to get a license from the Council.  To this can now be added, obtaining planning permission!  Which will of course involve paperwork,  and the paying of a fee.  Plus no doubt a long wait for permission to be granted.

It does seem a bit odd that someone wanting to rent a room in their own home to more than two lodgers will need to get planning permission, but this does appear to be the case.  In the published guidance on the new planning rules on the Communities and Local Government web-site, it says

Properties containing the owner and up to two lodgers do not constitute HMOs for these purposes.

Which presumably means that properties containing the owner and three lodgers will.  It is even odder, as whether a property is considered an HMO, is not related just to the number of people  there, but whether they are a ‘household’ or not. So if you take in six brothers as lodgers, they (probably) will count as one household as they are related.

Note that if you already let to three or more lodgers you will not need planning permission.  Only if you started doing this after 1 April 2010.  If you stop letting to the lodgers, you will not, apparently, need permission to change the planning class back again (but will if you later decided to take more than two lodgers again).

I am not a planning lawyer, so cannot advise fully on the ramifications on this new legislation (and would welcome comments from anyone who knows more about planning law and practice than I do).  However I would suggest that unless your lodgers are related in some way, you confine yourself to just taking in two at any one time.  Then you will not have a problem.

Do you take in more than two lodgers?  Is this rule likely to put you off taking lodgers?  Has anyone had any practical experience of applying for planning permission in these circumstances?  If so please do leave a comment, I would love to hear from you.

HMO issues
There are three things you need to know:

1. Whether your property is already an HMO, or
2. Whether by taking in lodgers you will create an HMO, and
3. Whether, if your property is an HMO, you will need to get a license

1. Is your property already an HMO?
This may be the case if you are a tenant of private rented property. For example if you are sharing a property with people who you are not related to, e.g. in a student house.

Following on from this, if your home is in one of those HMOs where your landlord has had to obtain a license, he may not be able to let you to have a lodger. The reason being that most licenses limit the number of people allowed to live in the property. If there are already this number, your landlord will risk losing his license if he lets anyone else live there.

If this is your landlords reason for refusing permission, there is nothing that can be done (other than move house).

2. Will taking in a lodger create an HMO?
Under the Housing Act 2004, a property is classed as an HMO if there are three or more occupiers who form two or more households and who share a kitchen, bathroom or toilet.

A household is generally a family unit (including parents, grandparents, children (and step-children), grandchildren, brothers, sisters, uncles, aunts, nephews, nieces or cousins, plus half relatives and foster children). If therefore, you take in your cousin as a lodger, this will not count as a separate household. Similarly any ‘domestic staff’ for example an au pair or nanny.

As a live in landlord, you are allowed two ‘non family’ lodgers before your property can be classed as an HMO. So, if you take in three non family lodgers your property will probably be an HMO. However if you take in two uncles, your cousin and have a live in nanny, your property will not be an HMO, even though there will be more people living in it!

The HMO Management regulations : One of the main consequences of running an HMO is that you need to comply with the Management of Houses in Multiple Occupation (England) Regulations 2006 – whether or not you need to get a license. There is not time to discuss these in any detail here, but you can read them online >> here (they are also explained on my Landlord Law web-site >> here).

3. What about licensing?
Many people with lodgers do not realise that in some circumstances they may have to obtain a license from their local authority. This will be if:

• Your property is an HMO as discussed above, and
• The property has three or more storeys, and
• There are four or more persons living at the property in addition to yourself and your family (including any family who are lodgers and any domestic staff)

To work out how many storeys there are, you need to include all actual storeys in the building including attics and basements if these have been converted to residential use or if they are used for business purposes. So if you have a standard two story house where the attic has been converted to a bedroom then this will count as a three story house.

If you are not sure whether your house or flat will come within the definition, have a word with someone at your Local Authority. Generally they will have a separate department which deals with HMOs and the licensing of HMOs.

Note that in some areas Local Authorities have introduced additional licensing requirements, so if you have three or more lodgers (who are not family) it might be a good idea to check with them. However if you only have two non family lodgers you will be safe.

If you find out that your property will need licensing, you will have to get the license before letting to your third non family lodger. This means completing the relevant form and paying the license fee. The fee varies from local authority to local authority. In some places it is under £100 but in others over £1,000. It will normally last for five years.

If you want to contact your Local Authority to ask about this, you will find contact details in my >> Local Authority Directory.

You will find a lot more information about HMOs and licensing on the Communities and Local Government web-site here.

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What is your experience of the things in this section? Have you had problems getting permission to rent to a lodger because your home is an HMO? If you let to more than three lodgers have you had to apply for a license yourself? How helpful have your Local Authority been when you asked them for advice?