Attention Landlords…Have you recently acquired a buy-to-let property that you are preparing for the market? One of the first questions you need to ask is: does my property need a licence? With evolving housing regulations and local authority requirements, understanding licensing rules is essential. From HMOs (Houses in Multiple Occupation) to Selective and Additional licensing schemes, the rules can vary depending on your property type and location across Newcastle upon Tyne and surrounding areas. Here, we’ll break down the different types of licences, where they are required and how we can help you with your licensing responsibilities as a Landlord.
What Is A HMO?
HMO stands for House in Multiple Occupation, which means a building or part of a building such as a flat is occupied by people who form more that one household:
• As their only or main residence
• Where the accommodation is used as living accommodation
• Where rents are payable or alternative arrangements in lieu of rent are made by at least one of the occupants.
• And where there is sharing of one or more of the basic amenities such as kitchen, toilet or personal washing facilities.
A household is defined as a family and this includes single persons, couples and same sex couples with or without their relatives, foster children or domestic staff. Also falling into the category of a HMO are bed & breakfast/ hotel accommodation which provides accommodation to person(s) who have no other permanent residence.
What Are The Different Types Of Licensing Schemes Across Newcastle upon Tyne?
There are three different licensing schemes in place across areas of Newcastle upon Tyne that Landlords should be aware of when investing. Mandatory HMO licensing: This was introduced nationwide by Central Government in 2006. The definition was extended in October 2018 to 5 or more occupants forming 2 or more households. Additional licensing (HMO): This is Local Authority designated and can apply to certain types of HMOs and can be area based or citywide. This is required when there are 3 or 4 occupants forming 2 or more households. Selective licensing schemes: Also Local Authority designated and includes all privately rented property and can be area based or citywide. This is applicable to 1 or 2 occupants forming 1 or 2 households.
What Is The Legislation?
The Housing Act 2004 introduced this new definition of a House in Multiple Occupation and the main impact it had was to encompass shared student accommodation, which previously hadn’t been governed by any such legislation. The government intended that only larger high risk HMOs be subject to Mandatory licensing from 6th April 2006. These properties were ones that comprise of 3 storeys or more and house 5 or more persons from 2 or more households. In 2018 however, the storey rule was removed, and any house or flat with 5 or more persons from 2 or more households requires a Mandatory licence. In addition, any part of the building not used for residential purposes, such as commercial premises within the building will count towards the number of storeys. Schemes are Local Authority controlled and can vary between Council’s across the country, however all schemes are governed by this legislation.
Mandatory HMO Licences:
The licence will specify the maximum number of persons who may live in the HMO in its current state and the term of the licence (usually a maximum of 5 years but can be shorter). The licence requires the landlord to have in place:
• A valid Gas Safety Certificate (renewed annually).
• An Electrical Safety Certificate (renewed every 5 years or less).
• A valid Portable Appliance Test (PAT renewed annually).
• Proof that smoke alarms are correctly positioned and installed and are maintained in good order (annual Smoke Alarm Test) or self-declaration.
• Proof that all furniture is safe and kept in safe condition (this can be done by declaration).
• A written statement of the terms under which occupants occupy the property, e.g. a tenancy agreement, given to all occupiers.
Additional HMO Licences:
From 6th April 2020, the scheme applies city wide and was renewed for a further 5 years in April 2025. Therefore the vast majority of HMOs in Newcastle upon Tyne now require a licence. This is for properties occupied by 3 or more occupants, in 2 or more households, who share or lack any basic amenities.
Exemptions:
• Buildings occupied by owners (& up to 2 tenants).
• Buildings owned or managed by public bodies, local housing authority or Residential Social Landlords.
• Buildings where residential accommodation is ancillary to main use of building. Examples include religious buildings and conference centres.
• Buildings not regulated under the Housing Act 2004. Examples include care homes and bail hostels.
• A HMO which is a self-contained flat situated in a purpose built block comprising of three or more self-contained flats.
Selective Licences:
Seven selective licensing areas are designated in Newcastle upon Tyne. All private rented properties within a selective licensing area require a licence unless otherwise exempt. From April 2025 the new Selective scheme will include any private rented property in the follows areas:
• Cowgate
• West End Terraces
• Howdene Road, part of Howlett Hall Road, Ravenburn Gardens and part of Swinley Gardens in Benwell. Also known as HHRS.
• Lemington
• Denton Court
• Columbia Grange
• Byker Old Town
• Greater High Cross
It is very important to note that if the property is not defined as a HMO but is in a selective licensed area, it will require a licence (for example, if there is a single occupant living in a rental property in a Selective Licence designated street, the property requires a licence).
Exemptions:
• Buildings managed or controlled by public bodies, local housing authority or Residential Social Landlord.
• Business tenancies, licensed tenancies, tenancies of agricultural land or holdings.
• Holiday homes.
• Buildings regulated outside of The Housing Act 2004 (such as a care home).
• Homes occupied by members of the owner’s family
How Can Pat Robson & Co. Assist You With Licensing?
As part of our Full Management service, our property management team and licensing experts can take care of your licensing application and any renewals for you. Your dedicated Property Manager will help you with the following:
• Carry out a full compliance check to ensure you are meeting the licensing requirements.
• Instruct and oversee any works which are required.
• Apply for the licence application (administration fee applies)
OR
• Apply for a licence renewal application (administration fee applies).
Our Full Management Service offers landlords a complete and worry-free property management solution, handling every aspect of the rental process from start to finish. We act as the primary point of contact for your tenants, managing all communications to ensure their needs are promptly addressed. To find out more about our range of Landlord services, you can give us a call on our dedicated Landlord line on 0191 20 100 – option 5. You can also email us at [email protected]
