9:02 AM, 30th December 2025, About 2 months ago 12
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Most lenders on HMOs require that all occupants be on one joint AST, rather than one AST per room.
I am wondering if this rule might be unenforceable, especially with the Renters’ Rights Act, because of anti-tenant and perhaps “unfair” effects of such rules:
1. HMO tenants on one AST are likely to be joint-and-severally responsible for damage, repairs, losses, and rent arrears, even of strangers (who are only linked by the AST);
2. Guarantors would also need to cover damages, repairs, and arrears for the whole HMO, for people they haven’t even met; and
3. More cumbersome to swap out individual tenants (more paperwork, “committee” needs to agree on a new tenant);
In case of mortgage default, the lender might consider it easier to evict a group (one AST), but the process to gain vacant possession from the borrower would still take as long as the last one out.
So why else would the lenders insist on one joint AST for HMOs, and is that enforceable?
Richard
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Julie Ford
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Member Since November 2022 - Comments: 2
7:43 AM, 5th January 2026, About a month ago
The Renters Rights Act is clear that any existing terms in mortgage agreement, insurance policies or superior leases that require fixed term ASTs will be void and unenforceable.
There are 2 main issues with using a joint AST for a shared house especially and HMO
1- you remove the communal areas and have no right to access without permission. So you restrict your ability to carry out your duties of managing the HMO
2- the issue is when sharers want to move on.
You cannot put break clauses into any future contract under RRA because you cannot have an end date and a BC assumes an end date, it also contradicts the tenants new legal right to give 2 months notice at any point, that notice then legally ends the tenancy for ALL, no different to an eviction warrant, any tenants that remain after the notice to quit date become trespassers.
Landlord MUST by law have a written tenancy in place under RRA, so will need to sign any remaining tenants up to a new contract before the NTQ expires or risk a fine, in addition, rent cannot be accepted for any period where a trespasser is in occupation or you risk entering a tenancy without written terms. You can accept a payment if you make it clear it is not rent but mesne profits, but you will still need to be looking to evict.
Yes, this is going to be a pain in the arse to manage, but having a process in place now ready for the new regime will limit the disruption later on.
Tiger
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Member Since October 2024 - Comments: 176
21:49 PM, 5th January 2026, About a month ago
Reply to the comment left by Paul Essex at 30/12/2025 – 11:23
I agree. I have always had tenants who come together on a joint tenacy. They are mostly students, occasioanlly working people.
The whole group has always left at the end of the tenancy or when their course completes. I have never had an issue that one tenant wish to stay. In between, I can get some work done, any maintenance etc.
However, the lender should not dictate how the landlord lets the property.
As Jo W said letting individual rooms means continuance of some of the rent all the time. This is good way of renting as well. The tenants are only responsile and liable for their own rent and damages.
Though I use joint and several liability clause and also an the Deed of Guarantee, I have never pursued another student for one student’s liabilties. Most students are good.