A Comprehensive Guide to HMO Licensing in Scotland

If you’re a landlord accommodating more than two unrelated tenants in a property, chances are you’ll need a House in Multiple Occupation (HMO) licence. HMO licensing has been a legal requirement for many years, originating under Civic Government legislation and now governed by the Housing (Scotland) Act 2006. While it’s a licensing matter, it is deeply rooted in the landlord-tenant relationship, making compliance essential.

What is an HMO?

An HMO can range from a single property to a few flats in a block or even large-scale student accommodation. However, if you have more than two unrelated tenants living together, an HMO licence is typically required unless the property qualifies for an exemption (e.g. hospitals or prisons).

To comply with HMO regulations, landlords must meet specific standards relating to space, safety, and technical requirements, detailed in Scottish Government guidance and technical standards for domestic buildings.

Navigating the Licensing Process

HMO licences are granted by the local Council where the property is located. Each council interprets the regulations and guidance differently and may impose additional conditions specific to its jurisdiction. It’s essential to double-check Council boundaries and policies, as these variations can be surprising and may affect your application.

When applying for a licence, timing is critical. Applications can take longer than anticipated, especially if they need to be reviewed by a licensing committee. Delays can also occur if objections are raised, or additional information is requested by the council.

Key Differences Between Scotland and England

Scotland’s HMO regulations differ significantly from those in England. In Scotland, only two unrelated tenants can occupy an HMO property without a licence, even if the property is otherwise ready for more tenants. In England, landlords can accommodate tenants while awaiting the licence.

This distinction emphasises the importance of timing and preparation when applying for an HMO licence in Scotland.

Maintaining HMO Licences

HMO licences are non-transferable, meaning new property owners must submit a fresh application, even if the property already holds a licence. Strict deadlines apply, and failing to meet them can result in the property being treated as a new application. This may require compliance with the most up-to-date and often more stringent technical standards, potentially leading to costly renovations.

For example, properties licensed in 2006 didn’t require natural light or ventilation in living areas. However, if such a property fails to renew its licence on time, it may have to meet current standards, which could involve substantial restructuring and financial loss.

Challenges with Council Licensing

Council licensing departments are currently facing backlogs, which can further delay the process. Incomplete applications or late payments can lead to rejections or delays, making it crucial to submit accurate and complete applications on time.

Why Seek Professional Advice?

The complexity of HMO regulations and the potential consequences of non-compliance highlight the need for professional assistance. At Gilson Gray, we have an experienced lettings team and legal professionals who specialise in HMO licensing. From new builds to property acquisitions, we provide end-to-end support, including recommending architects to assist with layout planning.

Whether you’re a landlord, property investor, or letting agent, navigating HMO licensing doesn’t have to be daunting. By seeking expert advice and ensuring compliance with regulations, you can avoid unnecessary costs, delays, and complications.

If you’re considering investing in an HMO property or need guidance on licensing, get in touch with our team at Gilson Gray.

Find out more about our Licensing services here.