HMO Licence Manchester: Guidelines for Landlords & Tenants

If you're letting a property in Manchester to multiple tenants who aren’t from the same household and they share a kitchen or bathroom, you're likely running an HMO. But here's the catch: you’ll probably need a licence.

Whether it’s three friends renting together or a full house share, Manchester City Council has clear rules, especially around fire safety and property standards. And trust us—ignoring them can lead to hefty fines. Let’s break down what you need to know to stay compliant and stress-free.

HMOs in Manchester

Understanding HMO properties and the associated regulations is imperative for potential landlords in Manchester. The term 'HMO' stands for 'Houses in Multiple Occupation,' and typically refers to any property that is

Rented out to at least three or more tenants who form more than one household
Share common facilities such as a toilet or a kitchen.

These can include houses or flats shared by students, young professionals, or others, hostels, and blocks of converted flats.

How does the Manchester City Council define HMO?

According to the Manchester City Council, an HMO is a building or part of a building in which:

More than one household resides in and facilities are shared, for example, a toilet.
It’s a converted building where more than one household lives in and is not entirely made up of self-contained flats.
The building consists entirely of converted self-contained flats with inappropriate conversion standards compared to the 1991 Building Regulations, and more than one-third of the flats are occupied under short tenancies. |

This definition helps landlords comprehend whether their property falls under the HMO regulations.

What are the Common types of HMOs in Manchester?

HMOs can take many forms, depending on the types of tenants and the building structure. Some common types in Manchester include:

Standard HMOs: These are usually properties rented to at least three tenants from different households, sharing facilities such as a kitchen or bathroom.
Large HMOs: These properties accommodate five or more tenants from two or more households, all sharing communal facilities.
Blocks of Converted Flats: These are buildings converted into several individual flats, often rented to different households.
Hostels: These serve as temporary accommodations where facilities are shared by multiple occupants.
Self-contained cluster flats: These are typically purpose-built flats, each with its own cooking facilities and bathroom, but possibly sharing other amenities.

Having identified your property type, you'll be better prepared to grapple with your HMO licensing requirements.

What is HMO Licensing in Manchester?

In recent years, the rise in the demand for affordable housing has seen an increasing number of properties in Manchester being rented out as Houses in Multiple Occupation (HMOs). These are typically rented to at least three or more tenants who form more than one household and share facilities such as toilets and kitchens. Given this growth in HMO properties, it becomes crucial for both landlords and tenants to understand the necessary regulations and licensing requirements that apply to this type of accommodation.

The HMO Licensing process is managed by the local council, with expectations set down clearly by the Manchester City Council. If a property meets the given conditions, it falls under the category of HMO and becomes subject to fulfilling specific standards and regulations. Landlords must ensure their property complies with these criteria, as failure to do so can lead to heavy penalties.

Is Your Property Eligible for an HMO Licence?

To secure a HMO License in Manchester, there are a series of criteria you must meet as a landlord. These guidelines help to ensure the well-being of tenants and maintain the overall quality of the public living environment.

1. Number of occupants and storey requirements

For a property to qualify as an HMO, there are key requirements related to the number of occupants and the number of storeys that must be considered.

For a property to be licensed as an HMO in Manchester, it not only needs to be occupied by three tenants forming two households, but also can comprise up to five people in the case of a large HMO. Interestingly, if the property consists of three or more storeys, irrespective of the number of occupants, it automatically gets classified as an HMO. Also, if your property has fewer than three storeys but houses five or more people, it also needs to follow the HMO licensing protocol.

Therefore, it's crucial to understand these occupant and storey requirements to ascertain the need for an HMO license.

2. Safety standards and amenities

In addition to the number of occupants and storeys, HMO landlords are also obligated to meet certain safety standards and provide necessary amenities. These include:

Ensuring proper maintenance of shared areas.
Regular cleaning and disinfection of shared spaces, particularly kitchens and bathrooms.
Providing sufficient, suitable facilities such as heating or cooking appliances.
Ensuring compliance with fire safety measures.

Meeting these safety requirements is extremely essential for creating a safe and harmonious living environment that is crucial for tenant's health and well-being.

3. Room size regulations

The room size in an HMO matters for ensuring adequate space for tenants. For instance, single bedrooms should ideally have a minimum floor area of 6.51 square meters, while double bedrooms require at least 10.22 square meters. Apart from fulfilling these size requirements, each bedroom must also provide sufficient heating, ventilation, and natural light to ensure tenants' comfort and health. Complying with these room size regulations is mandatory for HMO landlords and helps in maintaining the standard of living within HMO properties.

Who Needs a Mandatory HMO Licence—and Why?

Mandatory HMO Licensing is primarily required for large HMOs in Manchester. If the property being rented out is occupied by five or more people forming two or more households, and the tenants share facilities like a kitchen or bathroom(s), the landlord needs a Mandatory HMO licence. Not having one when required can bring about fines and penalties, so it’s wise to stay informed and in line with the local council's requirements.

Do You Need an HMO Licence in Manchester? Here’s What Landlords Must Know

If you're a landlord in Manchester and plan to rent your property, you are legally required to apply for an HMO Licence. But the responsibility doesn’t stop at just the property owner. The law applies to others involved in managing the property, too.

You Need an HMO Licence If:

Your property is rented to five or more people
The tenants form two or more separate households
They share facilities such as a kitchen, a toilet, or a bathroom
The property is their main residence, or they use it as their only home

Who Must Apply?

Landlords who own and rent out the HMO
Letting agents or property managers are involved in the day-to-day running of the property
Persons managing the property (even if just collecting rent) may also fall under this requirement, depending on the level of involvement

Why This Matters:

Operating an unlicensed HMO in Manchester can lead to civil penalties of up to £30,000, criminal prosecution, rent repayment orders, and restrictions on eviction procedures (Section 21 notices).
Local councils, like Manchester City Council, have the authority to enforce licensing rules strictly.

Application process and timeline

Applying for an HMO license starts with connecting with the local council. The application process generally aims to assess the suitability of the property for its intended number of occupants, inspecting amenities and fire precautions before deciding on the license and any necessary conditions.

Following the submission of a valid application, landlords can legally operate the HMO until final decisions and appeals are completed. While licenses can last up to five years for well-regarded landlords, less satisfactory conditions or past interventions might limit this period to three years. If a refusal to grant a license appears, serious consequences may follow, including the potential for the council to manage the property. Appeals against licensing decisions are permissible to the Residential Property Tribunal within 28 days.

What are the Additional Criteria for Licensing?

Beyond mandatory licensing, Manchester City Council occasionally extends licensing to smaller HMOs through what is known as Additional Licensing. These are typically properties that do not meet the Mandatory HMO Licensing criteria, possibly due to housing fewer people or because they exist within particular geographic confines.

Note that while currently there isn't an active additional HMO licensing scheme in place, the council reserves the right to introduce one in the future. Landlords should keep themselves updated and ensure compliance with all current licensing schemes to avoid any complications.

1. Coverage beyond standard Mandatory Licensing

Beyond your standard Mandatory Licensing, there are additional and selective licensing regulations that you need to meet when operating a HMO property, particularly as these can extend to smaller HMOs that do not meet the mandatory requirements. While an Additional HMO Licensing scheme is currently not in place in Manchester, the council may at any time choose to roll out one to extend licensing to smaller HMOs that don't meet mandatory licensing standards.

Similarly, Selective Licensing can be required regardless of the number of tenants or households residing in the property, but only for specific geographic areas within the city. Therefore, it's crucial to stay up-to-date with all local council rules and regulations associated with your HMO property.

Special Regulations for Specific Areas

Manchester City Council has also imposed certain additional licensing criteria for specific areas within the city bounds, an attempt to provide additional safeguards for tenants residing in these locations. Here are some special regulations:

Areas notorious for low housing demand or suffering from the adverse impact of antisocial behaviour might be especially targeted.
In certain areas, Selective Licensing may be required irrespective of the number of tenants or households within the property.
Some geographical areas may have Additional HMO Licensing requirements, something landlords in these zones will need to account for.

Staying informed about these special regulations and keeping your HMO property in compliance with them can spare landlords unnecessary legal trouble and penalties.

What Are the Penalties for Not Complying with HMO Licensing in Manchester?

Failing to comply with HMO licensing requirements in Manchester can lead to serious legal and financial consequences. Whether it's renting out an unlicensed property or breaching licence conditions, landlords risk facing strict enforcement action by Manchester City Council. Here’s what you need to know:

Hefty Financial Fines: Operating an unlicensed HMO can result in civil penalties of up to £30,000 per offence. These are often issued without the need for court action.

Criminal Prosecution: In more serious or repeated cases, landlords may face prosecution, leading to unlimited fines, court costs, and a potential criminal record.

Invalid Tenancy Agreements: If you're renting out an unlicensed HMO, your tenancy agreements may be deemed unenforceable. This means you cannot issue a Section 21 eviction notice, severely limiting your legal options as a landlord.

Rent Repayment Orders (RROs): Tenants (or the council) can apply for an RRO, which may require you to repay up to 12 months’ rent received while the property was unlicensed.

Breach of Licence Conditions: Even with a valid HMO licence, breaching its terms (e.g., poor fire safety, overcrowding) can result in further fines or penalty notices.

Interim Management Order (IMO): In extreme cases, the council can take control of your property through an IMO.

They will:

Manage the property directly
Collect rent from tenants
Exclude the landlord from management responsibilities

Also read: Navigating the Challenges of HMO Development Finance.

Need Help Navigating HMO Licensing in Manchester?

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Conclusion

When it comes to managing rental properties, particularly HMOs, staying on top of the necessary regulations and licensing requirements is essential. In the city of Manchester, the council works diligently to ensure that all HMOs meet specific safety standards and accommodate the well-being of their tenants optimally.

A clear understanding of what defines an HMO, the licensing criteria, mandatory versus additional licensing, and the regulations for specific housing areas can aid you in staying compliant with the law. Non-compliance opens you to potentially high penalties, including significant financial fines and legal prosecution.

To be a successful HMO landlord, ensuring compliance with all HMO licensing requirements is fundamental. Contacting your local council to clarify any doubts about your property's status, the need for licensing, and the mandatory requirements will indeed serve as rewarding guidance.

Frequently Asked Questions

How do I know if my property is an HMO?

Your property is considered an HMO if it has three or more tenants from multiple households who all share communal facilities. Familiarising yourself with the specifics of the Manchester City Council's HMO definition is crucial to identify whether your property requires licensing.

What are the penalties for running an unlicensed HMO?

Running an unlicensed HMO can result in severe penalties, including prosecution by the council, expensive fines, and court costs. In addition, you may be asked to repay the rental income earned during the period of non-compliance through a Rent Repayment Order. It's always advisable to stay compliant.