On 1st October the government will be changing its criteria on what HMO (House in Multiple Occupancy) needs a mandatory licence. In 2015 it was announced that, in a bid to improve poor living conditions and overcrowding in the private rented sector, local authorities will need to meet specific tests to determine its need for a licence. The current tests include 'The Standard Test', 'The Self Contained Flat Test' and 'The Converted Building Test'. 

Previously, however, a large HMO had to have a mandatory licence when it housed five or more occupants from at least two unrelated households, although this was only if the property had at least three storeys. If a building is already licensed under a mandatory or additional scheme, the existing licence will be valid until the date of expiration. Since April 2016, licenses with local Councils typically last five years. Those landlords who are currently licensed will receive necessary information about the new regulations and requirements prior to their current licence expiring, and it will be at that point that the new licensing conditions apply. 

Further changes require minimum measurements and dimensions to rooms that are used for sleeping. For example, a room sleeping a child aged 10 or under will require space of 4.64 square metres, a room for a person aged 10 and over requires 6.51 square metres, and a room sleeping two occupants requires 10.22 square metres. 

The price of not adhering to the new regulations is significant and will be regarded a criminal offence with a fine of up to £30,000 and a RPO (Rental Repayment Order) of up to 12 months' rental income. If a landlord fails to obtain a licence for their licensable property, they will not be able to issue tenants with a Section 21 notice.