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Deregulation Act and HMO changes next week-make sure you’re prepared

Victoria Barker
Written by Victoria Barker

HMO mandatory licensing, new minimum room size requirements, and the extension of the Deregulation Act to apply to all tenancies.

There are several changes coming into play on Monday 1st October which you need to be aware of. With a week to go, here we have compiled our articles and guides on the topics in one convenient.

Don’t forget our training courses will keep you up to date with the law. Check out our full range of courses on our Training Academy website, including our HMO landlord training programme

1. Changes to minimum room sizes

In a nutshell: As of 1st October 2018, it will be unlawful to rent out a house of multiple occupation (HMO) unless it meets brand new minimum room size requirements.

What’s new? A HMO licence granted under Part 2 of the Housing Act 2004 (that is pursuant to mandatory and additional licensing schemes) must contain conditions requiring the licence holder to ensure that any room used for sleeping accommodation is:

  • Not less than 6.51 m2 for one person over 10 years;
  • Not less than 10.22 m2 for two persons over 10 years of age; and
  • Not less than 4.64 m2 for one person aged under 10 years.

Learn more: You can read a helpful guide on the new minimum room size requirements here.

2. Changes to mandatory licensing

In a nutshell: More HMOs (an estimated 177,000) will be required to have a mandatory licence in order for them to be let out lawfully.

What’s new? What is known as the three storey rule is now going to be scrapped, and the changes will require landlords who let a property to five or more tenants forming two or more households to apply to their local authority for a licence, irrespective of building size. You must apply for a licence now as there is no grace period for this. A licence is valid for up to five years, and each HMO property requires a separate licence. You can also read about mandatory waste storage and disposal conditions for licences HMOs in our helpful guide here. 

Failure to have a licence when you a required to have one is a criminal offence and you could face an unlimited fine.

Learn more: In preparation for these changes, the RLA has been writing to over two hundred local authorities reminding them of the changes to mandatory HMO licensing. You can also read a new guide about mandatory licensing from 1st October here.

3. Section 21 changes and the extension of the Deregulation Act

In a nutshell: This extension of the Deregulation Act means that landlords with tenancies pre-dating October 2015 must give tenants the ‘prescribed documents’ at the start of the tenancy. Failure to do this could mean that if at a later date they were to attempt to gain possession of their property through the Section 21 route, then they could be unable to do so.

What’s new? For tenancies that pre-date October 2015, in order for landlords to serve a Section 21 they had to use a old form. However this form is to be scrapped, meaning that all landlords must use a prescribed Form 6A

Learn more: Our Policy Director and lawyer at Anthony Gold solicitors, David Smith has written about these changes. Read this helpful piece in the Financial Times explaining the Deregulation Act 2015, what it introduced and what you need to know if you do have tenancies that began before October 2015.

For an in depth read about this change you can also read this blog from David on our site.

About the author

Victoria Barker

Victoria Barker

Victoria is the Communications Officer for the RLA.

She is responsible for producing articles for our Campaigns and News Centre, the weekly E-News newsletter and media review, and creating social media content. She also contributes to our members magazine, Residential Property Investor.

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