There is a high chance you will need a licence to rent out your property in Hackney although you need to study the arrangements carefully as one scheme only applies to part of the borough. We will try to explain.
On 1 October 2018, Hackney Council introduced a borough wide additional licensing scheme together with a selective licensing scheme that covers part of the borough. Both schemes will operate for five years.
There is also the mandatory HMO licensing scheme that applies across England. So in total, there are three separate licensing schemes.
If you think you may need a licence, you need to decide which one. We will try to help you choose the right licence for your property.
1. Mandatory HMO licence
You will need a mandatory HMO licence if your property meets the standard test, self-contained flat test or converted building test HMO definition in section 254 of the Housing Act 2004 and is occupied by five or more people.
But what are these tests and what does this mean in practice? It means you need a licence for any house or flat that is occupied by five or more people who are not all related and live in the property as their main home. For example, it includes:
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Shared houses and flats occupied by students and young professionals;
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Properties converted into bedsits with some shared facilities; and
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Properties converted into a mixture of self-contained and non self-contained accommodation.
Prior to 1 October 2018, the mandatory HMO licensing scheme only applied to properties that were three or more storeys in height, but that restriction has now been lifted.
The government have decided to exclude purpose built self-contained flats within a block comprising three or more self-contained flats from the mandatory HMO licensing scheme. While this will be good news for some landlords, it does make the licensing scheme far more complicated.
To find out more, you can read our free guide to mandatory HMO licensing (here).
2. Additional licence
From 1 October 2018, you need an additional licence if your property is let as a House in Multiple Occupation that does not fall within the remit of the mandatory HMO licensing scheme. Licensing applies to almost all HMOs in Hackney.
The House in Multiple Occupation definition is not straightforward and you will need to study it carefully or seek advice. For example, Hackney Council have included ‘section 257 HMOs’ within the additional licensing scheme. These are properties that:
a) have been converted into self-contained flats; and
b) less than two thirds of the flats are owner occupied; and
c) the conversion did not comply with the relevant Building Regulations in force at that time and still does not comply.
In Hackney, the council only license section 257 HMOs if all the flats within it are privately rented. This is a complex area of law and you may need further advice.
3. Selective Licence
From 1 October 2018, you need a selective licence if your property (house or flat) is let out to a single person, couple or single household and is located in the council wards of Brownswood, Cazenove and Stoke Newington.
If you are unsure which ward your property is in, you can check on the council’s website.
If you rent a property to a single household in other parts of the borough, the selective licensing scheme does not apply.
In summary, if you rent out a House in Multiple Occupation in Hackney, it will need to be licensed. If you rent out a property to a single family, it will need to be licensed if it is in the council wards of Brownswood, Cazenove and Stoke Newington.