HMO Licensing and Household Definitions
Manuel*, a private landlord, approached our advisory service seeking clarity on House in Multiple Occupation (HMO) regulations. He had a three-bedroom property available and was approached by a prospective group of tenants, two cousins and their friend.
The landlord was aware that renting to three or more people often requires an HMO licence but believed an exemption might apply because two of the prospective tenants were family members.
The challenge
The landlord needed to understand:
- Whether two cousins and a friend constitute a single household or multiple households.
- If renting to this specific group would legally require him to secure an HMO licence before the tenancy began.
Our advice
Our adviser broke down the legal requirements under the House in Multiple Occupation Act (Northern Ireland) 2016:
- The Three-Person Rule: A property requires an HMO licence if at least three people from three or more different households live in it and share basic amenities (such as a bathroom and/or kitchen).
- The Legal Definition of a 'Household' (Section 88): Under Section 88 of the Act, a person is only considered a member of another person’s household if they are a:
- Partner
- Parent or Grandparent
- Child or Grandchild
- Brother or Sister
- Uncle, Aunt, Nephew, or Niece
- The Cousin Exemption Absence: Crucially, cousins are not included in the statutory definition of a household member.
Because cousins do not legally count as the same household, the prospective group consisted of three individuals from three distinct households.
Our adviser informed the landlord that he could not legally rent the property to this group without a valid HMO licence.
Note: Operating an unlicensed HMO is a serious offence. Landlords in breach of HMO licensing requirements can face severe legal penalties, including fines of up to £20,000.
*Name has been changed to protect privacy