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What is a HMO?
Briefing Paper
What is a ‘HMO’? When the National
HMO Lobby began lobbying in 2000, we said, "There is a short
answer, and a long answer. The short answer is that ‘HMO’
(sometimes ‘HIMO’) stands for ‘house in multiple
occupation’. The long answer is that there is no short answer,
it all depends on your perspective, on where you stand (in some
respects, this is quite literally the case, as different parts of
the UK give different answers)."
After ten years of lobbying, however, a consensus has been achieved.
The common-sense answer is that a HMO is a house
shared by a number of unrelated people (like a shared student house).
But all three components are debatable – what constitutes
a house? what qualifies as a single household, in contrast
to multiple? what counts as occupation? (For instance,
in the notorious Barnes versus Sheffield case of 1995 the court
ruled that a house shared by five students was deemed not to be
a HMO as they were living as a single household.) However, throughout
the UK, there is now basic agreement, and the debatable components
have been clarified. Broadly, a HMO is 'a dwelling shared by three
or more unrelated people.'
In housing terms, the concept of HMO was introduced
by the Housing Act 1985, where Section 345 identifies HMO as a house
occupied by persons who do not form a single household. But the
Act did not define this term. The Housing
Act 1996 (Part II) enabled local authorities to register HMOs
– but it still failed to define what they were. The new government
of 1997 was elected on a manifesto commitment to license HMOs, and
in 1999 a Consultation Paper was published on Licensing HMOs
in England & Wales. Finally, the Housing
Act 2004 provided for licensing,
and introduced a lengthy definition – effectively, any house
(or flat) which is the main occupation of three or more people who
are not a single household (i.e. family) sharing amenities. (There
are certain qualifications and exceptions: see Sections 77 and 254-259
and Schedule 14 of the Act.) (Only larger HMOs are subject to mandatory
licensing. Local authorities currently have to apply to the government
for additional licensing of other HMOs in designated areas; but
the government is consulting on giving councils a general consent
to do so.) The Act applies in England & Wales, from 6 April
2006. [The National HMO Lobby has produced a Notification
Form for residents to notify their local authority of HMOs liable
to licensing.]
In the mean time, HMO licensing was introduced in Scotland by the
Civic
Government (Scotland) Act 1982 (Licensing of Houses in Multiple
Occupation) Order 2000 (Scottish Statutory Instrument 2000 No.
177). Here, HMO is defined as “a house (or flat) occupied
by more than two persons, who are not all members either of the
same family or of one or other of two families.” All HMOs
are subject to licensing. (Part 5 of the Housing
(Scotland) Act 2006 consolidates the definition and licensing
in primary legislation; implementation is anticipated in 2007.)
In Northern Ireland, HMOs were defined in the Housing
(Northern Ireland) Order 2003 (SI 2003 412) as “a house
occupied by more than two persons, who are not all members of the
same family.” (The following year, the Statutory
Registration Scheme for Houses in Multiple Occupation in Northern
Ireland 2004 came into effect, wherein all HMOs in five designated
HMO Action Areas must be registered, as well as all HMOs with more
than ten occupants.) In 2012, a Fundamental
Review of the Regulation of Houses in Multiple Occupation
was begun.
There is therefore now a clear (though not identical) definition
of HMO in housing legislation in all parts of the UK. (All make
it clear that the definition includes student houses.) And all parts
of the UK have a licensing or
registration scheme, whose purpose is to protect the interests of
occupants of HMOs.
In planning terms, until recently, the situation
was much less clear. Planning legislation in the UK did not explicitly
recognise HMOs. The way land and property is used is classified
by Use Class Orders (one Order
for each part of the UK). Change of use from one class to another
usually requires planning permission. England & Wales were covered
by the Town
& Country Planning (Use Classes) Order 1987 (SI 1987 764).
Residential uses were grouped in Class C, comprising C1 (Hotels),
C2 (Residential Institutions) and C3, Dwelling Houses – meaning
six or less residents, unless living together as a family. So planning
permission was needed only for houses with more than six residents,
who were not living as a family – by default, this was the
planning definition of HMO (what counts as living together as a
family remained debatable) [see footnote 1].
Scotland is covered by the Town
& Country Planning (Use Classes) (Scotland) Order 1997 (SI
1997 3061 [S.195]), and the situation is similar, except that the
threshold is five residents. Class 9 covers Houses occupied by a
family or not more than five residents living together [and also
small B&Bs]; again therefore, by default, a HMO is a house with
more than five residents not living together. (Flats are excepted:
local authorities therefore have the discretion to decide what constitutes
development; most concur with the Order, but there are exceptions.)
The exception in planning terms was Northern Ireland. A new Use
Class Order came into effect in 2004 (The
Planning [Use Classes] Order [Northern Ireland] 2004, Statutory
Rule 2004 458). This Order adopted the definition of HMO from housing
legislation, the Housing Order of 2003: ‘house in multiple
occupation’ means a house occupied by more than two persons
who are not all members of the same family. Furthermore, HMOs were
specifically excluded from Class C, Residential Uses (meaning that
any change of use to HMO requires planning permission).
However, on 27 January 2010, John Healey MP, Minister for Planning,
announced that the Use Class Order in England would be amended,
to define HMOs and subject them to planning permission. Statutory
Instrument 2010 No. 653 The
Town and Country Planning (Use Classes) (Amendment) (England) Order
2010 was made on 8 March: first of all, Class C3 adopted
the definition in the Housing Act 2004 of 'single household' (a
couple and/or immediate relatives); secondly, a new Class C4 HMOs
was introduced; and finally, this Class adopted the definition in
the Housing Act of 'HMO' (three or more unrelated people sharing
a dwelling). The new Order came into force on 6 April 2010. Any
change of use to HMO required planning permission. However, on 1
October, the new government made change of use to HMO permitted
development, with Statutory Instrument 2010 No. 2134 The
Town and Country Planning (General Permitted Development) (Amendment)
(no 2) (England) Order 2010. (This permitted development
right may be withdrawn by means of an Article 4 Direction.)
Wales followed suit in 2016: on 25 February, Welsh Statutory Instrument
2016 No. 28 (W. 10), The
Town and Country Planning (Use Classes) (Amendment) (Wales) Order
2016 came into force, excluding small HMOs fron Use Class
C3, creating a new Use Class C4 for small HMOs, and adopting the
definitions of both from the Housing Act 2004. Thus, change of use
from C3 to C4 requires planning permission in Wales. On the same
date, Welsh Statutory Instrument 2016 No. 29 (W. 11), The
Town and Country Planning (General Permitted Development) (Amendment)
(Wales) Order 2016, also came into force: this made conversion
of HMO (C4) to dwelling (C3) permitted development - but it did
not make change of use from C3 to C4 into permitted development
in Wales (unlike England).
In most of the UK therefore there is now an identical definition
of HMO in both housing and planning legislation. Scotland awaits
alignment.
Regardless of the legislation, in terms of actual use,
a HMO is a unique class of property (as is now largely recognised).
The use of HMOs is distinctive in four different ways.
· Occupancy: the occupation of HMOs is intensive,
higher than an ordinary dwelling house, and equal to a high-season
hotel. (This entails high levels of noise, traffic and waste.)
· Occupants: typically, the occupants of a HMO are
from one narrow age range (young adults), unlike the wider mix in
most other residential uses (two or even three generations). (This
has lifestyle implications, with higher than usual levels of noise,
traffic and waste.)
· Occupiers: by the very fact of multiple occupation,
HMOs lack the internal structure of a single household (or the management
of a residential institution). (This makes harder the management
of noise, traffic and waste.)
· Occupation: typically, tenancies in HMOs (like
the private rented sector in general) are short-term. (This necessarily
entails a lower level of engagement with the neighbourhood.)
A HMO therefore is a very different dwelling from any other form
of residential accommodation. If change-of-use from a house to a
hotel or a residential institution needs planning permission (as
is required by all the Use Class Orders in the UK), then so too
should change-of-use to HMO – in order to protect the interests
of neighbours of HMOs.
In market terms, HMOs are the quintessence of
the private rented sector (PRS) of housing. Tenancies are short-term,
and this is typical of private renting as a whole. In Britain, the
private rented sector is largely used for temporary accommodation
– in 2003, over half of all moves were to, in or from the
PRS; 45% of all new households were in the PRS; and the average
length of stay was eighteen months. (Social renting and owner-occupation
is much more permanent.) So, the PRS in general, and HMOs in particular,
give rise to transience. Furthermore, all markets tend
towards concentrations of supply and demand, and the housing
market is no exception. Concentrations of claimant HMOs were noted
in the DETR’s Consultation Paper on HMOs in 1999. Concentrations
of student HMOs in university towns
have led the ODPM to set up a research project into the problems
which arise [the report on Studentification
was published in January 2006; the Lobby's own proposal is the Ten
Point Plan]. (Similar problems have developed in USA and
Canada.) Concentrations of transient populations are detrimental
to the sustainability of communities. In the interests of neighbourhoods
as a whole, therefore, controls on proportions of HMOs are necessary
(Glasgow has a policy of no more than 5% HMOs in any one street)
– but such policies in turn rely on planning control of individual
HMOs. [See also footnote 2.]
All these issues raise questions about HMOs in policy
terms. The Consultation Paper Licensing in the Private Rented
Sector: Consultation on the Implementation
of HMO Licensing (ODPM, 2004) asserts “HMOs ... provide
affordable housing options for some of the most vulnerable and disadvantaged
groups in society, including benefit claimants or those on low incomes,
students and asylum seekers ... We therefore recognise the vital
importance of this sector in providing housing for these groups
and in particular to meet the growing demand for student accommodation.
We want to see this sector continue to play its valuable role ...”
(p18). The Paper notes three main markets for the PRS in general,
and for HMOs in particular, “those who would otherwise be
homeless ... students ... and young professionals” (p11).
However, it is debatable whether HMOs are the best response to these
demands. Should vulnerable people, who would otherwise be homeless,
be dependant on the private sector (rather than social housing)?
HMOs are almost entirely conversions of former family homes. In
an era of housing shortage, is this the best way to accommodate
students (rather than in purpose-built accommodation)? Again, is
the young professional market best served by conversions, or by
new housing development? Are HMOs the best policy option at all?
The question then is not only 'What is
a HMO?' but also 'Why HMOs?'
Footnote 1: In 2002, DTLR
undertook a consultation on the Use Classes Order in England &
Wales, and an amended Order was made on 21 January 2005 (Statutory
Instrument 2005 No. 84, The
Town and Country Planning [Use Classes] [Amendment] [England] Order
2005). Despite much lobbying, the Order made no change
to Class C. ODPM has published guidance to the amended Order in
Circular 03/2005 Changes
of Use of Buildings & Land (paragraphs 74-77 refer
to HMOs).
Footnote 2: The social impacts
of HMOs have been recognised by a number of government publications,
including -
- Housing Research Summary 228 Dealing
with 'Problem' Private Rented Housing DCLG 2006
- House of Commons, Communities & Local Government Committee
Coastal
Towns (HC 351) The Stationery Office, London, 2007
- CLG, Evaluating
the impact of HMO and Selective Licencing: the baseline before licencing
in April 2006. August, 2007
- CLG, Evidence
Gathering - Housing in Multiple Occupation and possible planning
responses, September 2008
- CLG,
Introducing a definition of houses in multiple occupation into
the Use Classes Order: Impact assessment, March 2010
National HMO Lobby
email: hmolobby@hotmail.com
website: www.hmolobby.org.uk
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