In 2005, significant changes were made to the Housing Act which meant that Houses in Multiple Occupancy came under additional legislation and scrutiny. 

This was to protect the people staying in HMO’s whilst ensuring that standards were nationalized and brought up to a decent and safe standard.

Generally speaking, all properties where there are more than 2 people sharing who are unrelated is classified as a HMO.  However, what this means in practice is that HMO’s need to meet national standards of rental accommodation.

None of this is too onerous and is general commonsense.

HMO’s, which are 3 or more storeys and house 5 or more people do fall under a mandatory licencing scheme and these properties WILL require additional work to meet regulations.

This typically involves fire alarm systems, emergency lighting and fire-proof self-closing doors.  You should budget £3,000 to £6,000 for these works depending on the size and complexity of the requirements.

Additional regulations such as fire risk assessments and periodic inspection of the electrical facility will be required.  You or your manager can manage all of these requirements with the assistance of good electrical contractors.