HMO Licensing, When a Property Needs a Licence and How to Get One

What is an HMO?

A House in Multiple Occupation (HMO) is, broadly, a property rented by three or more people who are not all members of the same household (family) and who share amenities such as a kitchen or bathroom. The full legal definition is set out in the Housing Act 2004, and the precise criteria can be complex, particularly for properties converted into self-contained flats.

Common examples of HMOs include student houses, professional house shares, and bedsit properties with shared kitchen or bathroom facilities.

Mandatory HMO Licensing

Since October 2018, **mandatory HMO licensing** applies in England to all properties that:

• Are occupied by **five or more people** forming **two or more separate households**, and
• Have some sharing of basic amenities (kitchen, bathroom, or toilet)

This definition, introduced by the Licensing of Houses in Multiple Occupation (Mandatory Conditions) (England) Regulations 2018, removed the previous requirement for the property to be three or more storeys high.

Mandatory licensing applies across all of England. A landlord who operates an HMO requiring a mandatory licence without holding one is committing a criminal offence.

Additional and Selective Licensing

In addition to mandatory licensing, local councils in England have powers under the Housing Act 2004 to designate areas where:

• **Additional HMO licensing** applies, requiring HMOs below the mandatory threshold (e.g. properties with three or four occupants) to also be licensed
• **Selective licensing** applies, requiring all private rented properties in a designated area to be licensed, regardless of whether they are HMOs

Additional and selective licensing schemes must be approved by the Secretary of State (or made under delegated powers) and are time-limited. A landlord operating in multiple local authority areas should check the current licensing requirements with each council separately, as they vary significantly.

HMO Licence Conditions

A licence is granted subject to conditions, which typically include:

Minimum room size requirements were introduced in 2018. Rooms below the minimum may not lawfully be used as sleeping accommodation.

How to Apply for an HMO Licence

Applications are made to the local housing authority (the council) in which the property is located. The process typically involves:

1. Completing the council's online or paper application form

2. Paying the application fee (fees vary significantly by council, typically £500–£1,500 for a five-year licence)

3. Submitting supporting documents: gas safety certificate, EICR, floor plans, tenancy agreements

4. A council inspection of the property to verify compliance with licence conditions

5. Granting of the licence (usually valid for five years, subject to conditions being met)

Penalties for Operating Without a Licence

A landlord who operates an unlicensed HMO faces:

• An unlimited fine in the Magistrates' Court
• A civil penalty of up to **£30,000** per offence
• A **Rent Repayment Order**, requiring the landlord to repay up to 12 months' rent to the tenants (or to Universal Credit/Housing Benefit where applicable)

Property Passport UK and HMO Records

Landlords can record HMO licence details, including the licence number, granting authority, and expiry date, in their property's passport on Property Passport UK. This is particularly useful for portfolio landlords managing compliance across multiple licensed properties, and for letting agents who need to verify licence status on behalf of clients.