HMO stands for House of Multiple Occupancy, meaning a house whereby there are 3 or more tenants living there but they are all from different households – this is very common in University cities and towns, like Aberystwyth. Most student properties are classed as HMO’s and need extra management, certificates and licenses in order to become a HMO.

When starting your HMO journey, you will need to gain an HMO License. In Aberystwyth, this is done through Ceredigion County Council. An application form will need to be filled out as well as providing the following mandatory details and documents: 

• The appropriate fee
• Passport sized photo
• Photo ID & proof of address
• Gas safety certificate
• Electrical installation report (EICR)
• Energy performance certificate (EPC)
• Floor plans (these can be a sketch)

The relevance of this blog today, relates to the increase in HMO fees for Ceredigion. This was in action only a couple days ago on Tuesday 4th April 2023. The fees now stand at £285 per habitable room for a new application, and then renewals would be £239. Renewals are needed every 5 years and are a lot less complicated to acquire as only a smaller renewal application form is required. This increase is extremely significant as only one year ago they were at £245 for a full application and £205 for a renewal.

One question that gets asked a lot is ‘what is a habitable room?’ – well, I actually had a very recent conversation with a helpful Housing Officer at Ceredigion County Council only last week. He clearly stated that ‘a habitable room is a bedroom or a living room’. However, this does need to meet the criteria – I have attached a link here which has a document within that clearly states ALL CRITERIA. There always seems to be so many guidelines within so many guidelines, making the whole process so difficult to understand.

Why do we even need an HMO License? Ceredigion is classed as an Article 4 area which is a legal term used whereby the local council will require licensing and planning permission when converting residential homes in HMO’s. The idea behind this legislation is to closely monitor and control the property market to prevent an over-flooding of HMOs in the community. I found a super useful read on understanding Article 4 linked here.

On a much lighter note, I wanted to mention a few HMO listings that I have noticed on the market currently which seems to me that they would all be very successful and a great beginning of someone’s HMO property portfolio… Contact the agent today and you can find out more on the current rental achieved and success rate when letting. I have linked the listings below:

• https://www.zoopla.co.uk/for-sale/details/62608946/?search_identifier=d62a7c35329bcfcf6e479395ae4590ba
• https://www.zoopla.co.uk/for-sale/details/64078679/?search_identifier=396bd849306a0a6041fd288352f21043
• https://www.zoopla.co.uk/for-sale/details/62843113/?search_identifier=e8f1b39be3567426dfb9c63f4f94beef

In a couple weeks, I plan on going through some of the Aberystwyth HMO listings in more detail, looking into the rental yields, success rates and potential.

To apply for a HMO License online today – please follow the link here. Or, if you would prefer a paper-form, let me know and I can forward this over to anyone.

I know all this information may seem quite overwhelming for someone looking to invest in the HMO market, but that is exactly why I am here! I completely understand how lengthy the process can be, so sometimes it is nice to just have that one person to ask a quick question to. Please do not hesitate to contact us regarding ANY questions or discussions relating to HMO’s. Or even, contact an agency; Padarn Property are always in to chat about any queries and help you with starting your HMO journey.

The contact details for their Aberystwyth office are 01970 627350 or info@padarnproperty.co.uk – better yet, just pop in!

Leave a comment, I would love to hear your thoughts!