HMO Licensing England - Complete Guide 2026

If you rent a property to multiple tenants who aren't from the same household, you may be operating a House in Multiple Occupation (HMO). Many HMOs require a licence from the local council, and operating without one can result in fines of up to £30,000, rent repayment orders, and an inability to evict tenants. This guide explains everything you need to know about HMO licensing in England.

What Is an HMO?

A House in Multiple Occupation (HMO) is a property rented out by at least 3 people who are not from the same household (e.g., family), but share facilities like the bathroom or kitchen.

The Standard Test

A property is an HMO if it meets all of these conditions:

• Occupied by 3 or more persons
• Those persons form 2 or more households
• They share one or more amenities (bathroom, toilet, kitchen)
• The property is their only or main residence
• Rent is payable (or other consideration)

What Counts as a "Household"?

A household is typically:

• A single person living alone
• Members of the same family living together (couples, parents/children, siblings)
• Cohabiting couples (whether married, civil partners, or unmarried)

Unrelated individuals—like friends sharing a house, students, or professionals—are separate households even if they share one tenancy agreement.

Common HMO Scenarios

Mandatory Licensing

Since 1 October 2018, mandatory HMO licensing applies across England to any HMO that is:

• Occupied by 5 or more persons
• Forming 2 or more households
• Sharing facilities (bathroom, kitchen, toilet)

Who Applies for the Licence?

The person having control of or managing the property must apply. This is usually:

• The landlord (owner)
• The managing agent if they have day-to-day control

Licence Duration

HMO licences are typically granted for 5 years. Some councils issue shorter licences (1-3 years) for new landlords or properties with compliance issues.

Licence Fees

Fees vary by council but typically range from:

• New application: £500 - £1,500
• Renewal: £400 - £1,200
• Additional charges: For late applications, inspections, variations

Additional Licensing Schemes

Many councils operate additional licensing schemes covering HMOs that don't meet mandatory criteria. These are local schemes—you must check with your specific council.

What Additional Licensing Covers

Typically, additional licensing covers:

• HMOs with 3-4 occupants from 2+ households
• Properties above or below commercial premises
• Specific areas designated by the council

How to Check If Additional Licensing Applies

1. Visit your local council website
2. Search for "HMO licensing" or "additional licensing"
3. Check if your property falls within a designated scheme area
4. Contact the housing team if unsure

Selective Licensing

Some councils also operate selective licensing, which covers all private rented properties in designated areas—not just HMOs. If your area has selective licensing, you need a licence even for single-family lettings.

How to Apply for an HMO Licence

Step 1: Check Requirements

Before applying, ensure your property meets the council's standards for:

• Room sizes (minimum bedroom sizes for occupation)
• Fire safety (alarms, escapes, doors)
• Kitchen facilities (adequate for number of occupants)
• Bathroom facilities (adequate for number of occupants)
• General condition and maintenance

Step 2: Gather Documentation

Step 3: Complete the Application

Most councils have online application portals. You'll provide:

• Property details and layout
• Proposed number of occupants and households
• Your details as proposed licence holder
• Manager details (if different)
• Declaration of "fit and proper person" status
• Fee payment

Step 4: Inspection

The council will usually inspect the property. They'll check:

• Room sizes meet minimum standards
• Fire safety measures are adequate
• Kitchen and bathroom facilities are sufficient
• General condition is satisfactory

Step 5: Licence Issued

If satisfied, the council issues the licence with conditions. Processing typically takes 2-6 months depending on the council.

Licence Conditions

HMO licences come with conditions you must comply with throughout the licence period:

Mandatory Conditions

• Gas safety: Annual Gas Safety Certificate
• Electrical safety: EICR every 5 years
• Smoke alarms: Working alarms on every floor
• Carbon monoxide: Detectors where required
• Tenancy references: References for new occupiers
• Terms of occupation: Written statement to each occupier

Common Additional Conditions

• Maximum number of occupants per room
• Regular property inspections
• Waste management arrangements
• External appearance and maintenance
• Display of licence or emergency contacts
• Notifying the council of changes

Room Size Requirements

Minimum sleeping room sizes (per person):

• 1 person (10+ years): 6.51 m²
• 2 persons (10+ years): 10.22 m²
• 1 child (under 10): 4.64 m²

Penalties for Non-Compliance

Criminal Prosecution

Operating an unlicensed HMO that requires a licence is a criminal offence:

• Civil penalty: Up to £30,000 per offence
• Criminal fine: Unlimited (for prosecution through courts)
• Criminal record: Potential conviction

Rent Repayment Orders

Tenants (or the council) can apply to the First-tier Tribunal for a rent repayment order:

• Covers up to 12 months' rent
• Tribunal decides the amount based on circumstances
• Order made against the landlord personally

Section 21 Block

You cannot serve a valid Section 21 notice while the property requires but lacks an HMO licence. Any Section 21 served will be invalid.

Breach of Licence Conditions

Breaching licence conditions can result in:

• Civil penalties
• Licence revocation
• Management orders (council takes over management)
• Prosecution for serious breaches

HMO Licensing FAQ