HMO licensing Guide | A house in multiple occupation (HMO) may need a licence. This HMO licensing guide explains when you must apply and how to stay compliant. It provides practical steps, cost insights and penalties for non-compliance.
What Is an HMO?
An HMO is a property rented by three or more people from more than one household sharing kitchen or bathroom facilities. Local authorities use definitions from the Housing Act 2004 and related regulations to decide whether a property is classed as an HMO.
When Does an HMO Licence Apply?
An HMO licence applies when a property meets mandatory licensing criteria under UK housing law. A property is an HMO when several unrelated tenants share basic facilities.
Licensing rules ensure safe management, proper space standards and full compliance with local regulations.
Mandatory HMO Licensing Requirements
A licence is required when five or more people live in two or more households. The occupiers must share kitchen, bathroom or toilet facilities. This rule applies regardless of the property’s height or number of storeys. The 2018 national reform removed the three-storey requirement, creating a wider mandatory licensing category. This change brought many two-storey and single-storey shared homes into the licensing system. Landlords must check occupancy levels and household formation before letting a shared property.
Local Authority Licensing Schemes
Some councils operate additional licensing schemes. These schemes often cover properties with three or four tenants in multiple households. Rules vary by council, so landlords must review local guidance before letting any shared home. Councils may also introduce selective licensing for areas with high rental activity or low housing standards. Selective licensing can apply to all rented homes in a defined zone. This may include single-family lets, so landlords should confirm their obligations early.
Why Local Rules Matter
Licensing requirements differ significantly between councils. One council may require licences for smaller HMOs. Another may require licences only for larger shared homes. Checking the local authority website is essential before new tenants move in. Non-compliance can create major financial and legal risks.
HMO Licensing Guide – Data Table
| Category | Key Information |
|---|---|
| Key Indicators That a Licence Is Required | • Five or more people form two or more households. • Tenants share kitchen, bathroom or toilet facilities. • The property meets HMO space requirements. • The council operates additional licensing. • The area sits within a selective licensing zone. |
| Key Licence Criteria | • The property must be suitable for the number of occupants. • Minimum room sizes apply; one adult bedroom must be at least 6.51 m². • Facilities must be adequate, including kitchens, bathrooms, waste disposal and escape routes. • The licence holder and manager must pass a fit and proper person test. |
| How to Apply for an HMO Licence | • Contact your local council’s housing or private rented sector team. • Complete the application form with property plans and occupant details. • Pay the licence fee and submit safety documents (gas safety, EICR, fire risk assessment). • Allow the council to inspect the property. • The licence lasts up to five years and must be displayed. |
| Costs & Duration | • Licence fees vary by council and property size. • Fees typically range from several hundred to over one thousand pounds. • Licences last up to five years before renewal. • Operating an unlicensed HMO risks unlimited fines and repayment orders. |
| Penalties for Non-Compliance | • Operating an unlicensed HMO is a criminal offence. • Councils can issue civil penalties. • Councils can apply rent repayment orders. • You may be unable to use a Section 21 notice. |
| Ongoing Licence Compliance | • Maintain standards for the full licence term. • Keep gas, electrical and fire safety checks up to date. • Report changes to the licence holder, manager or property layout. • Display the licence somewhere visible to tenants. |
HMO Guidance and Support
Understanding HMO rules is essential for every landlord. Many landlords also need guidance on finance, compliance and safety. The resources below help support full HMO management and regulatory compliance.
HMO Buy-to-Let Mortgages
HMO investments often require specialist finance products. You can explore HMO buy-to-let mortgages to understand available lending options. These products suit properties with higher tenant numbers and complex income structures. They can also support portfolio expansion or property conversion plans.
Landlord Compliance Services
Landlords must follow strict standards when managing HMOs. You can review our landlord compliance services for essential support. These services help landlords meet safety, documentation and inspection requirements. They also help maintain full licensing and regulatory compliance across tenancies.
Fire Safety Requirements for HMOs
Fire safety is a key licensing requirement. You can read more about fire safety requirements for HMOs to understand your obligations. These rules cover alarms, escape routes, fire doors and maintenance checks. Every landlord must follow these standards to protect tenants and avoid penalties.
Find an HMO Specialist Broker
Many landlords need specialist advice from experienced professionals. You can use the Connect broker directory to find an adviser who understands HMO finance. A specialist can review your goals and recommend suitable mortgage options. This support helps landlords secure structured finance for HMO properties.
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