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All HMOs are subject to control under the Housing Act 2004 and standards laid out in regulations.
These regulations include:
Under the changes in the Housing Act 2004, if you let a property which is one of the following types, it is a House in Multiple Occupation:
In order to be an HMO the property must be used as the tenants' only or main residence and it should be used solely or mainly to house tenants. Properties let to students and migrant workers will be treated as their only or main residence and the same will apply to properties which are used as domestic refuges.
Households are defined as follows:
The following are Members of the same family living together including:
Any domestic staff are also included in the household if they are living rent-free in accommodation provided by the person for whom they are working.
Therefore three friends sharing together are considered three households. If a couple are sharing with a third person that would consist of two households. If a family rents a property, that is a single household. If that family had an au-pair to look after their children, that person would be included in their household.