Operating a House in Multiple Occupation (HMO) often requires a licence from the local council. Failure to obtain a required HMO licence has serious consequences, including for evictions.
England & Wales:
- Section 21 Invalid: You generally cannot serve a valid Section 21 notice for an unlicensed HMO property that requires a licence.
- Rent Repayment Orders (RROs): Tenants (or the council) can apply to a Tribunal for an RRO, potentially forcing you to repay up to 12 months' rent received while the property was unlicensed.
- Section 8: While S8 grounds might still technically apply (e.g., rent arrears), the lack of a licence severely weakens the landlord's overall position and a court might be reluctant to grant possession, especially on discretionary grounds.
Scotland:
- Mandatory Ground 16: If your HMO licence application is refused or revoked, this provides a specific ground for eviction (Notice to Leave, Ground 16).
- General Compliance: Operating without a required licence is an offence and reflects badly in any Tribunal proceedings.
Action: Check council requirements rigorously. If your property needs an HMO licence, ensure you have one before letting and keep it current. Licensing status is fundamental.
