Real Estate Adviser Alert: Inside International Investment
Property Week magazine has this week published the results of our Real Estate Investment Team's think tank 'Looking Inside International Investment'…
Published 18 July 2016
Renting your property out for short term use could turn it into a House in Multiple Occupation (HMO), for which a local authority licence may be required.
The Deregulation Act 2015 has brought short-term lets in London in line with the rest of the country, by permitting short-term use up to 90 days a year. However, owners/ landlords and managing agents should be aware of certain provisions in the Housing Act 2004 whereby a building could be classified as an HMO.
There are two types of HMO:
A s257 HMO may require a licence from the local authority if they have stipulated that one is required (it is not mandatory for the local authority to license this type of HMO). If you manage, or control, an HMO which should be licensed, and for which no application has been made, you will be committing a criminal offence for which the local authority may prosecute.