HMO licensing explained

What counts as an HMO?

Under the Housing Act 2004, a property is an HMO if:

• It is occupied by three or more people
• The occupants form more than one household, for example they are not all from the same family
• They share one or more basic amenities such as a kitchen, bathroom, or toilet

Common examples include shared houses, bedsits, and some converted flats. A house shared by three unrelated professionals is an HMO. A family of four living together is not.

Mandatory HMO licensing

Since October 2018, mandatory HMO licensing applies across England to any HMO occupied by five or more people forming more than one household. The previous requirement that the property had to be three or more storeys was removed.

This means you need a mandatory HMO licence if your property:

• Is rented to five or more people
• Has tenants from more than one household
• Tenants share kitchen, bathroom, or toilet facilities

This applies regardless of the number of storeys and regardless of whether your council has additional or selective licensing schemes.

Additional HMO licensing

Some councils operate additional HMO licensing schemes under Section 56 of the Housing Act 2004. These extend HMO licensing to smaller HMOs, typically those with three or four occupants, that would not be caught by the mandatory rules.

Additional licensing schemes vary by council. Some cover the entire borough, others only specific wards. Check our additional licensing guide for more detail, or use the postcode checker to see if your area is covered.

HMO licence fees

Fees vary by council but typically range from £500 to £1,500 for a five-year licence. Larger HMOs or those with more occupants usually attract higher fees. Many councils charge more for late applications or renewals.

HMO licence conditions

An HMO licence comes with conditions that typically cover:

• Maximum occupancy - the licence specifies how many people can live in the property
• Fire safety - smoke alarms, fire doors, escape routes, and related precautions
• Amenity standards - minimum kitchen and bathroom provision based on occupant numbers
• Room sizes - minimum 6.51m² for a single bedroom and 10.22m² for a double
• Gas and electrical safety - annual gas safety checks and a valid EICR
• Waste disposal - adequate bin provision and recycling arrangements
• Property management - keeping common areas clean and in good repair

What happens if I operate an unlicensed HMO?

Operating an HMO without the required licence is a serious offence:

• Civil penalty. For offences committed on or after 1 May 2026, GOV.UK guidance refers to civil penalties of up to £40,000 for relevant offences, with different treatment for breaches and for offences committed before that date. Earlier cases may still be assessed under previous rules.
• Criminal prosecution with an unlimited fine
• Rent repayment order. Tenants or local authorities may be able to apply for a rent repayment order. GOV.UK guidance now refers to up to two years' rent for relevant offences, but eligibility, timing and the final amount depend on the facts and tribunal decision.
• Banning order in serious cases
• Section 21 position. From 1 May 2026, Section 21 notices can no longer be used for existing or new private tenancies in England. Transitional rules may still matter for notices served before that date.

How do I check if my property needs an HMO licence?

Ask yourself these questions:

1. Is the property rented to five or more people from more than one household? You almost certainly need a mandatory HMO licence.
2. Is it rented to three or four people from more than one household? Check whether your council operates an additional HMO licensing scheme.
3. Is the property in a selective licensing area? You may need a selective licence even for a single-let.

Use our free postcode checker to see what schemes apply in your area, or browse the council directory for details. To bring the mandatory, additional, and selective rules together in one place, use the HMO licence checker.

HMO planning permission

HMO licensing is separate from planning permission, but both may apply. Since 2010, converting a dwelling (Use Class C3) into a small HMO for 3 to 6 occupants (Use Class C4) requires planning permission in areas where councils have made an Article 4 Direction removing permitted development rights.

Large HMOs with 7 or more occupants, classified as sui generis, always require planning permission. Check with your council's planning department before converting a property to HMO use.