HMO Definition and Licensing — What Landlords Need to Know About Houses in Multiple Occupation

What is an HMO?

A House in Multiple Occupation (HMO) is a property where three or more people from two or more separate households share facilities (such as a kitchen or bathroom).

**Standard definition (Housing Act 2004):** A property is an HMO if it is occupied by three or more people forming two or more households.

**Examples:** A shared house rented to 4 students (each a separate household); a bedsit block where tenants share a kitchen; a house converted into bedsit rooms.

**Excluded:** Properties occupied by the landlord and their family with tenants living in; properties with only 2 unrelated people (not an HMO).

Mandatory Licensing

**Mandatory HMO licence** is required for properties that are:

• Occupied by 5 or more people forming 2 or more households, **and**
• At least 3 storeys high (in England, the 3-storey requirement was removed for most properties in 2018)

Following the changes in October 2018, mandatory licensing in England applies to **all HMOs with 5 or more occupants from 2 or more households**, regardless of the number of storeys. This brought hundreds of thousands of additional properties into scope.

**Additional/selective licensing:** Individual local authorities can introduce additional licensing schemes covering smaller HMOs (3 or 4 occupants) or selective licensing applying to all rented properties in a defined area. Check your local authority’s website to determine what licensing applies in your area.

Applying for an HMO Licence

Applications are made to the local authority housing department. Requirements typically include:

• A floor plan of the property
• Details of the number and size of rooms
• Details of fire safety measures (alarms, extinguishers, fire doors, emergency lighting)
• Details of the landlord and any managing agent
• Gas Safety Certificate and EICR (electrical installation condition report)
• Fit and proper person declaration

Licence fees vary by authority but typically range from £500 to £2,000 for a 5-year licence. Some authorities offer discounts for accredited landlords.

Room Size Requirements

Since October 2018, mandatory HMO licences carry minimum room size conditions:

• Rooms used as sleeping accommodation by one person aged 10 or over: minimum 6.51 m²
• Rooms used by two people aged 10 or over: minimum 10.22 m²
• Rooms used by a child under 10: minimum 4.64 m²

Rooms below these sizes cannot be used for sleeping. Licensing authorities check compliance with room sizes.

HMO Management Regulations

The Management of Houses in Multiple Occupation (England) Regulations 2006 impose duties on HMO managers regardless of whether a licence is required:

• Common areas must be kept in good repair and clean
• Adequate fire safety measures must be maintained
• Adequate lighting, heating, and ventilation must be provided
• Refuse storage must be adequate
• Water supply and drainage must be maintained

Planning Permission

Converting a property to an HMO (particularly for 3–6 unrelated occupants) may require planning permission to change the use from C3 (dwelling house) to C4 (HMO). Larger HMOs (7+ occupants, sui generis use) always require planning permission.

Many local authorities have introduced Article 4 directions removing permitted development rights in specific areas, meaning planning permission is required for C3 to C4 conversions even where it would otherwise not be needed.

Penalties for Non-Compliance

Operating an HMO without a licence where one is required is a criminal offence carrying an unlimited fine. Local authorities can also issue civil penalties of up to £30,000 per offence. Unlicensed HMO landlords may also receive rent repayment orders requiring them to repay up to 12 months’ rent.