HMO Compliance Made Simple

The client, a company with plans to sponsor migrant workers, invested in a property at auction without fully understanding its background, location, or regulatory needs. After a £50,000 renovation - transforming the living room into an additional bedroom and adding an extra bathroom to increase capacity, changing boilers, pipes and rewiring it completely - they were unaware that the property was situated in a council - managed area requiring mandatory HMO compliance. Just seven days after the workers moved in, neighbours raised concerns about the property’s compliance with HMO regulations. The local council inspected the property and issued a 14 - day enforcement letter, outlining several mandatory improvements the company needed to make to meet HMO standards.

Upon receiving the council's enforcement letter, the company turned to us for guidance. We quickly assessed the property and identified the key compliance issues that needed to be addressed, including:

• Proper Room Allocation: The property, although well-renovated, needed clearer room designations that met the council’s guidelines for safe and adequate living space per tenant.
• Fire Safety: We ensured that fire safety regulations were properly adhered to, including the installation of fire doors and smoke alarms throughout the property.
• Sanitation Facilities: The additional bathroom was a great step, but certain standards needed adjustment, including water pressure and drainage requirements.
• Legal Requirements for Occupancy: Since the tenants had already moved in, we provided guidance on the process of applying for an HMO license retroactively, despite the complications involved.
• Emergency Lighting: We had to install the mandatory emergency lighting and provide an escape route for all tenants.
• Mandatory certificates: Although the client had Gas certificate and EICR in place, we had to conduct EPC, Floor plan, PAT testing on all appliances to ensure that all needed documentation is in place.

We followed a clear, structured process to help the client meet HMO compliance:

• Property Assessment: We conducted a thorough inspection of the property, creating a compliance checklist based on the council's 14-day enforcement letter.
• Implementing Fire Safety Measures: Our team coordinated the installation of fire doors, smoke detectors, and appropriate exit routes.
• Ensuring Adequate Facilities: The existing renovations were enhanced to comply with sanitation and living space requirements, such as improving bathroom facilities and confirming that each bedroom had adequate space per tenant.
• Documentation and HMO License Application: We helped the company submit the necessary documentation for their HMO license, guiding them through the required forms and processes with the local council.

The property was brought into full compliance within the 14 -day enforcement period, with the client investing an additional £9,500 on top of the £50,000 they had already spent on initial renovations. However, compliance did not guarantee automatic licensing approval, as HMO applications should typically be submitted before tenants move in. Despite this setback, the client successfully filed the application, though delays in approval were anticipated due to the retroactive submission. While the process was costly and time -consuming, the property is now compliant with all local council regulations. The company is better equipped to manage future properties with a clear understanding of the importance of securing HMO licensing early on in the process.

This case highlights the complexities of purchasing properties at auction and the importance of understanding local regulations - particularly in council -managed areas in London. With proper guidance and quick action, we were able to help the client avoid severe penalties and ensure their property met all HMO compliance standards. If you’re looking to convert your property into an HMO in London, contact us today for expert advice and support.