HMO Licensing: Do You Need a Licence?

Operating an unlicensed HMO is a criminal offence carrying an unlimited fine. Here is how to tell whether you need a licence and what to do about it.

What is an HMO?

A House in Multiple Occupation (HMO) is a property occupied by 3 or more people forming 2 or more separate households who share facilities (kitchen, bathroom, toilet). Common examples: a house shared by 3 students, a bedsit property, a house converted into self-contained flats (in some cases).

Three Types of Licensing

1. Mandatory Licensing

Required for properties occupied by 5 or more people forming 2 or more households, regardless of the number of storeys. This changed in 2018 — the old 3-storey rule no longer applies.

2. Additional Licensing

Many local authorities have introduced additional licensing schemes covering smaller HMOs (typically 3 or more occupants). Check your local authority's website — schemes vary significantly by area.

3. Selective Licensing

Some local authorities require ALL private rented properties in a designated area to be licensed, not just HMOs. Check whether your property falls within a selective licensing area.

How to Check

1. Go to your local authority's website and search for "HMO licensing" or "selective licensing"

2. Use the government's licence checker: www.gov.uk/houses-in-multiple-occupation

3. Call your local authority's private sector housing team

Applying for a Licence

You will need to provide:

- Property address and description

- Floor plan showing room sizes and uses

- Details of all occupants (or maximum permitted occupants)

- Gas Safety Certificate (if applicable)

- EICR (Electrical Installation Condition Report)

- Fire safety equipment details (alarms, extinguishers, fire doors)

- Details of any managing agent

- Fit and proper person declaration

Licence Conditions

A licence will impose conditions including:

- Maximum number of occupants

- Minimum room sizes (6.51m² for one person sleeping room; 10.22m² for two)

- Fire safety requirements (interlinked smoke alarms, fire doors, emergency lighting)

- Waste management facilities

- Maintenance and repair standards

Licence Duration and Cost

Licences typically last 5 years. Fees vary by local authority — typically £500–£1,500 for a new licence. Some councils offer discounts for accredited landlords.

Fit and Proper Person Test

You must pass a fit and proper person test. You will fail if you have convictions for:

- Fraud, dishonesty or violence

- Sexual offences

- Unlawful discrimination

- Housing or landlord offences

Penalties for Operating Without a Licence

- Unlimited fine (criminal prosecution)

- Civil penalty up to £30,000

- Rent repayment order — tenants can reclaim up to 12 months' rent

- Cannot serve a valid Section 8 notice while unlicensed

HMO Management Regulations

Licensed HMOs must also comply with the Management of Houses in Multiple Occupation (England) Regulations 2006, which impose ongoing duties on landlords regarding fire safety, common parts, waste facilities and structural maintenance.

Top Tips

✓ Check licensing requirements BEFORE purchasing or converting a property

✓ Apply for a licence well in advance — processing can take 8–12 weeks

✓ Keep your licence up to date — renew before it expires

✓ Keep records of all compliance work carried out

✓ Join a landlord accreditation scheme for potential fee discounts