HMO, House of Multiple Occupation

An HMO (House of Multple Occupation) License is required for all privately rented properties of three stories or more, and occupied by five or more people.The property must be used as the tenants' only or main residence;properties let to students and migrant workers are treated as their only or main residence.

HMO's are a key source of housing for the less well off parts of society such as migrant workers and students, and for societies more vulnerable groups.However, many groups representing likely HMO tenants are not always supportive of the legislation which was designed to improve tenants' access to satisfactory housing.

The British Property Federation (BPF) and the National Students Unions argue that in some areas, regulations may make it more difficult for tenants to find somewhere to live, as fewer landlords will be willing to let their property as an HMO. The BPF report states "HMOs are not only an important source of accommodation for students, but also for people who are often least able to put a roof over their heads in society.

Placing planning restrictions on this important source of affordable accommodation is something we will be arguing strongly should be resisted because it will restrict supply, raise rents and could be used unscrupulously to restrict particular groups in society to particular areas in towns and cities"

Mandatory licensing of HMOs was introduced in England and came into force in April 2006. The regulations investigate the suitability of the landlord to carry out their role effectively as well as the provision of adequate amenities in the building. The license also limits the number of tenants in the building.

Despite the new regulations HMOs are still considered a relatively safe property investment, even through 2009. Although HMO properties are generally associated with the bottom end of the market, this is not necessarily true in London and other areas of high property value, where they are often let as a house share for young professionals.

The property investor may be happier with the concept of a single more expensive property with professional tenants in, rather than having to manage a number of cheaper properties in less salubrious areas. There is always the option to convert back to a single family residence to realise your investment.

Paramount Investments has a number of HMO properties for sale in West Hampstead.

• Inglewood Mansions, West End Lane
• Greencroft Gardens West Hampstead
• Pandora Road NW6