Does a 2-Bedroom House Need a HMO Licence?

A question recently poised to me by a client and normally I would say – No.

However, a bizarre turn of events led me to reading a Liberal Democrat blog and during the course of a day out with the Chief Executive of Reading Borough Council, they happened upon a 2-bedroom property that had been turned into a 9-bedroom HMO!

Several things sprung to my mind:

1. I understood that minimum room sizes were generally 6.5 metre squared – surely going from 2 to 9 bedrooms would make them so small they would be broom cupboards!
2. I know that generally you don’t need to get planning for change of use from a residential property to a House in Multiple Occupation unless its over 7 rooms but how on earth did these guys get planning or did they not apply?
3. Parking is going to be a massive issue.  I find that only around 50% of tenants have a car but even so – at 9 bedrooms, that possibly 4 to 5 cars and in a terraced road, that’s going to cause major issues.
4. Normally a 2-bed HMO wouldn’t need a HMO licence but in this case with 9 bedrooms, I would assume that it does as its WAY over the norm.

So for my responsible HMO property investors out there, here are some rules to follow when contemplating your next HMO:

1. Ensure your minimum room sizes are 6.5 metre squared – its just not feasible renting a room smaller than this and would you want to live in a room smaller than this?
2. Ensure that you find out what the planning guidelines are in the town where you wish to run your HMO – and if you can, stick to smaller HMO’s to avoid having to change usage.
3. Make sure that you have off-road parking for at least 50% of your tenants as its very rare that more than this will have their own cars.
4. Speak to your local housing officers about the HMO licence, find out what is required and get your applications in if they are needed.

And to the good people of Redland, hope you get some of your issues sorted out quickly!