HMO Licences In Peterborough

Say “house in multiple occupation” and some people tend to think of massive properties with ten or more people living in them.

While this is true of some, in fact many smaller properties can be HMOs, and they form a significant part of the rented housing sector in Peterborough.

They’re popular with students and young professional renters who find sharing with friends and colleagues a sociable and wallet-friendly way to live.

They’re equally popular with landlords who can often get better yields than by renting to a couple, single person or family.

But there’s a certain amount of extra work involved in setting up and running them, and they do require a licence from the council.

What is an HMO?

An HMO is defined by Peterborough City Council as being occupied by ‘five or more persons who form two or more households, and who share basic amenities such as a kitchen, bathroom and toilet’. It’s sometimes known as a house share.

(A ‘household’ would be a single person, a couple, or a group of people who are directly related.)

HMOs can vary from a bed-sit where each room has its own kitchen but shares a bathroom, to lettings where each person has their own room but shares kitchen and bathroom facilities.

Landlords or property managers are expected to ‘conduct appropriate checks’ to be confident about whether their property is a single let or an HMO.

Mandatory licence

If a licence is required – known as a ‘mandatory licence’ – it’s important to get one, as running an HMO without a licence could attract a civil penalty of £30,000, or an unlimited fine in the courts.

If a landlord or manager is convicted, they may be deemed not a ‘fit and proper person’ and they may not be allowed to operate an HMO anywhere in in England.

Another sting in the tail is that courts could make a rent repayment order which could mean paying back all rents received in the course of one year.

Lucrative for landlords

However, as long as landlords or lettings managers get everything right, HMOs can be very lucrative.

You can apply for a licence online but it’s important to fill everything in correctly, and you have to pay the application fee. If the council is not happy that all the boxes have been ticked, you may have to apply again – you will not get back your application fee and will have to pay a new fee on top.

The fee is currently £750 and the licence runs for five years.

Anyone can apply but must nominate a person or company to be the licence holder. This could be the property owner or the managing agent.

If the owner, landlord or agent already has a ‘selective licence’ – this applies in areas where the council wants more control over the supply and type of properties – it will be inspected and then moved on to the mandatory licence.

Peterborough has selective licensing areas which can be found on the council website.

Some parts of the country have an ‘additional licensing’ scheme with stricter conditions, but as of April 2023 this does not apply in Peterborough.

Fit and proper persons

You must ensure the house is suitable for the number of tenants  and the owner/manager is a fit and proper person, which usually means no criminal records or breach of landlord laws.

The council must also be sent an updated gas safety certificate every year and be provided with electrical safety licenses for wiring and all appliances.

There are also various conditions relating to fire safety.

Award-winning services

Here at Progressive Lets, we have extended our award-winning services to include profitable HMO management across Cambridgeshire, Northamptonshire and Lincolnshire.

If you currently have an HMO, or are looking to source your first or next one, we are here to help every step of the way. Please don’t hesitate to contact us.