You often hear talk about flat-sharing, where apartments or entire houses are shared in London.
In the past, it was possible to rent out a large apartment on a room-by-room basis, maximising the potential rent.
This allowed owners and operators in the sector to profit by dividing large rooms into smaller ones, converting living rooms into bedrooms and renting out apartments with no limit on the number of occupants.
After numerous problems and regrettable events, the British government introduced new legislation governing Houses of Multiple Occupancy.
. In 2006, a mandatory licence was introduced which initially applied to properties with three or more floors and five or more people from two or more families.
Over subsequent years, the licence has been further refined and defined, imposing the requirement for an HMO licence on any apartment which is rented to more than three people who do not have family ties, for example 3 friends.