17 May 2022

Q:  Landlord asks “I am purchasing a former care home . I will be leasing it to an assisted living operator. Will I need to obtain a HMO license?

A:  The use of the property will determine if it needs a HMO Licence.

Is the Tenant a Registered Social Landlord?

There are many questions on this matter.

These are buildings not needing a licence, but be sure the provider is who they say they are:

Buildings controlled or managed by public sector bodies etc.

A building where the person managing or having control of it is—

  • a local housing authority,
  • a non-profit registered provider of social housing,
  • a body which is registered as a social landlord under Part 1 of the Housing Act 1996 (c. 52),
  • a police and crime commissioner,
  • the Mayor’s Office for Policing and Crime,
  • a fire and rescue authority, or
  • a health service body within the meaning of section 9 of the National Health Service Act 2006.

Additionally it would not if the

Buildings are controlled or managed by a co-operative society

A building where:

  1. the person managing or having control of it is a co-operative society whose rules are such as to secure that each of the conditions set out in sub-paragraph (2) is met, and

(b) no person who occupies premises in the building does so by virtue of an assured tenancy, a secure tenancy or a protected tenancy.

2. The conditions are:

(a)  that membership of the society is restricted to persons who are occupiers or prospective occupiers of buildings managed or controlled by the society,

(b) that all management decisions of the society are made by the members (or a specified quorum of members) at a general meeting which all members are entitled to, and invited to, attend,

(c) that each member has equal voting rights at such a meeting, and

(d) that, if a person occupies premises in the building and is not a member, that person is an occupier of the premises only as a result of sharing occupation of them with a member at the member’s invitation.

3. For the purposes of sub-paragraph (1) “co-operative society” means a body that:

(a) is registered as a co-operative society under the 2014 Act or is a pre-commencement society (within the meaning of that Act) that meets the condition in section 2(2)(a)(i) of that Act, and

(b) is neither:

(i) a non-profit registered provider of social housing, nor

(ii) registered as a social landlord under Part 1 of the Housing Act 1996.

4. In this paragraph:

  • “the 2014 Act” means the Co-operative and Community Benefit Societies Act 2014;
  • “assured tenancy” has the same meaning as in Part 1 of the Housing Act 1988;
  • “protected tenancy” has the same meaning as in the Rent Act 1977;
  • “secure tenancy” has the same meaning as in Part 4 of the Housing Act 1985.

As you can see it is confusing and much more information and detail would be needed.

Also there may be planning issues. For example many  existing C4 HMOs loose their C4 status when let for social housing and cannot get it back.

Find out exactly who you are dealing  with as the social provider and then it is best to book a consultation call with one of our senior consultants to be sure you are doing things correctly.

Book here

Thank you for reading

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