Houses In Multiple Occupation 'HMO’s'

Brighton and Hove has a massive student population and the increase in buy to let investments and financial long term planning (eg a use of your Pension fund) has opened up the mortgage market for properly Licensed HMO’s.

HMO’s used to be difficult to purchase with a standard buy to let mortgage, which affected their value and marketability. Lenders regarded these properties as a bad risk, usually consisting of multi-let properties which were in a bad state of repair and poorly managed. Brighton And Hove Council decided to monitor and control smaller HMO’s. They imposed an enhanced licensing system and more stringent controls in multi let areas in the city on 5 November 2012. Full details of what now qualifies as an HMO in Brighton and Hove that should be Licensed and what properties already have an HMO licence are on the Brighton & Hove Council Website.

Any property with an HMO Licence has been inspected by the Council and has had to comply with stringent conditions including the size of the bedrooms, communal areas, amount of bathrooms, fire alarm systems etc.

A Licence lasts 5 years from the date of issue , but any Buyer must apply to have that Licence transferred to them on a purchase of that Licensed HMO. There are sliding scale fees payable, on average £500 and the Buyer must prove to the Council that they are a responsible person to hold a Licence.

A properly Licensed HMO in Brighton and Hove is now seen as a good investment by many lenders and Buyers as the potential rental income is so much higher than letting to say, a family. The fact the property is licensed gives the Lender the assurance that it meets the safety standards required by the Council and is well managed and maintained.

We at Fitzhugh Gates have the expertise to advise you on the purchases of HMO’s.

Fitzhugh Gates Solicitors Comment

With the changes in Pensions allowing annuity funds to be released for investment elsewhere, the HMO market can only grow and as with any investment or property purchase it is imperative that proper advice is sought. Lawyers here at Fitzhugh Gates Solicitors have the specialist local knowledge and expertise to advise you on the purchases of HMO’s.