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Question

England | Start of a Tenancy (England) | Types of Tenancies (England)

AST or not?

17 Oct 2022 | 1 comment

Hi Guildy,

I have a property (2 bedroom) that is current a joint tenancy between two friends. Once of the tenants has asked if their partner can move in also and if the 3rd person can be added to the tenancy and a new fixed term signed. Is it possible for 3 unrelated tenants to sign under a AST or does this mean the property is a HMO and therefore needs to be licenced?

Answer

1 Comment

  1. guildy

    Signing all three on the AST is the correct thing to do.

    It will be an HMO, but whether it needs licensing will depend on your area, and you’ll need to check with your local authority. Their website should be able to inform you.

    Mandatory licensing nationwide applies when there are five or more occupiers, but some authorities have additional licensing for three or more occupiers.

    There will be additional duties when you have three or more occupiers, but you’re likely already compliant.

    Please see here for more licensing info: https://england.landlordsguild.com/england-handbook/licensing-of-private-rented-properties/?objectId=england-handbook-18-7.

    And here for the HMO management regulations: https://england.landlordsguild.com/england-handbook/duties-on-the-manager-of-an-hmo/?objectId=england-handbook-16-1

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