New property purchase – is it a HMO?

Have you asked the relevant Council? Selling Estate Agents? Solicitors can ask the official questions and find out for you?

Be careful. There is nothing wrong with it from a business point of view but this is a family matter and that brings its own problems.
We bought a house in London when our elder daughter was at university. She was a serious studious girl and filled the other rooms with quiet girls she thought were equally studious. They were not but quiet because they were shy and nervous even neurotic .Once I was woken at 1.30 am because one of them had seen a mouse... not surprising in an East End house more than a 150 years old. I had to take out a contract on the poor beast and it got what was coming to it. (We rarely suffer from rodents in our Norfolk houses but in the same week one of Norfolk female tenants told me they had a mouse in the house and bought a trap and dealt with it. A proper response from a farmer's daughter). Anyway the incident caused tension in the London house as my daughter was studying for her Finals. She found it uncomfortable because she felt responsible for the house yet not the landlord.
The following year my son was there and filled with his mates that were at university with him. They drank and smoked and rarely paid their rent on time. The day they graduated my wife insisted we turfed them out (including our son).... on a hot summers day it took five hours to defrost the fridge even with judicious use of a hair dryer.
Our second daughter should have followed her siblings but having seen the problems wisely decided to live elsewhere.
So buy a house for your student child but be aware of the stresses and strains. The business potential is fine but I would not do it again because of the dangers to family harmony .

You should probably have a close look at the legislation and overall requirements for landlords letting property in Wales.

https://rentsmart.gov.wales/en/home/

Yes, its an HMO and one that you would struggle to manage if it's in a different town. There are many good reasons not to do this so I would suggest you pay your Son's rent instead.

Reply to the comment left by Seething Landlord at 06/09/2023 - 11:35
Wow! Thanks for the link.

I was not aware of this legislation. My properties have always been in England. I know there are pressures on landlords and they are leaving in droves but this takes the biscuit - I will now need to be trained on how to rent out a house.

Is there still such a thing a taking in lodgers or is everything now formalised by 'occupation contracts'?

I will read further but at first glance my initial foray into the Welsh property market may have been stopped in its tracks...

Hmm...you obviously have BTL experience so agree with what someone else has suggested, it might prove more trickier than you expect mixing family with business....which invariable causes issues. Why are you taking HMO route? If this is just about helping you son why not buy a 2 bed place so your son has some company on a rent a room basis (tax benefit) which is much easier to manage without the legislation and problems that always go with HMOs (they are many and varied depending on council legislation)They definitely not for the faint hearted and to expect your son to manage this with likewise students is a huge responsibility (ask any agent or HMO owner). As you've already mentioned Wales has instigated changes to council tax charges but you will.need to ask the relevant council how this impacts if it's student let. I think changes are for 2nd home owners/holiday lets. Finally....it might be better for your son to find his own way in the first year. What if this doesn't work out for him (the drop out rate in first year is high) Sure you'll have thought of all this anyway. Good luck

Reply to the comment left by HouseBuyer at 06/09/2023 - 11:51
Wales is essentially a foreign country when it comes to devolved matters so do not assume that any of the English rules apply.

I have no idea what rules apply to lodgers or anything else, just that it is a completely different ball game.

Anything is possible provided you have the money.
Now you could buy a property in your son,s name ( however he would lose FTB status )
He could be the Landlord and have 2 Lodgers helping to pay the rent and bills.
He would still need a " Safe house" GSC, EICR, EPC etc
As a student Landlord I would RUN a mile from this idea.
Your son is what 18/19/20 years of age.
Some lenders do offer Student mortgages.
You could also look at YBS and offset mortgage if you have the MONEY

Reply to the comment left by Nick Faulkner at 06/09/2023 - 11:14
For future reference, I've found the quickest way to defrost a fridge is with a couple of large saucepans of boiling water placed on the shelves, alternatively filled and emptied as fast as a kettle can boil the water!

Hairdryer or hot air gun.
Alternatively go out and come back some hours later leaving towels around the base
Seriously, it's not fair on your child to expect them to manage a rental. It could also cause ill-feeling between the students if they are seen as their landlord
Amongst other things, in Wales you have to give six months notice