Dwelling of Multiple Occupancy (HMO)
A House of Multiple Occupancy (HMO) is defined as a building with individual rooms which are rented out and share facilities such as kitchen and/or bathroom. Given that an EPC is only required for a self-contained unit, rented rooms within a HMO do not require an EPC (because the property includes shared facilities). However, if the whole building is sold it will require an EPC, either commercial or domestic, depending on the building type.
Examples of HMOs:
Joint and several
If you grant a joint and several tenancy where all the tenants are on one agreement, then this is, in legal terms, no different to letting a normal dwelling to a single family. Therefore, one EPC will be required for the whole dwelling.
Individual let rooms
Where individual rooms in a building are rented out on separate tenancies and there are shared facilities (e.g. kitchen and/or bathroom), an EPC is not required. An EPC is only required for a dwelling that is self-contained, meaning that it does not share essential facilities such as a bathroom/shower room, wc or kitchen with any other dwelling, and that it has its own entrance. This is because an EPC is only required on the rental of a building or part of a building ‘designed or altered to be used separately’. Renting a room does not meet the ‘part of a building’ definition. Put simply, an EPC is only required for a habitable unit if it is self-contained.
A house or flat is rented by a number of tenants who have exclusive use of their bedrooms but share a kitchen and bathroom. In this case each tenant has a contract with the landlord for the parts they have access to, but not for the whole dwelling. An EPC is therefore not required each time a tenant moves, although one will be required for the whole house if it is sold or rented as a whole.
A group of friends want to rent a property and there will be a single contract between the landlord and the group for the rental of the whole dwelling (ie it is a joint and several tenancy). An EPC is required for the whole dwelling.
Individual tenants rent rooms in a hall of residence. Each room does not constitute a building or part of a building designed to be used separately. An EPC is not required, for each individual room. However, an EPC will be required on the whole building if it is sold or rented. It will also be required on self-contained units within the hall, for example, a self-contained caretaker’s flat, if this is sold or rented.