HMO Licensing Explained: A Guide for UK Landlords | LegalDocuments.co.uk

Overview

A House in Multiple Occupation is, broadly, a property let to three or more occupants who form more than one household and share basic facilities such as a kitchen or bathroom. A 'household' generally means a single person, a couple, or members of the same family, so three unrelated sharers in a flat will typically qualify, while a family of four usually won't.

An HMO licence is permission, granted by the local authority, to operate that kind of shared property. It confirms the council has checked the landlord (and often the managing agent) is a 'fit and proper person', that the building meets minimum standards for room sizes, fire safety, amenities and waste, and that suitable management arrangements are in place.

Not every HMO needs a licence. Larger HMOs always do under the national mandatory scheme, but many councils run additional schemes that pull smaller shared houses into the net too. Rules vary significantly between local authorities, so the same property can be licensable in one borough and not in the next.

Renting out an HMO without the required licence is a criminal offence and can trigger rent repayment orders in favour of tenants.

Key steps

1. Work out whether the property is an HMO. Start by looking at who lives there and how they use the space. If three or more people from two or more households share a kitchen, bathroom or toilet, you're likely running an HMO. Converted blocks of flats and certain bedsit arrangements can also fall within the definition even when it doesn't feel obvious.
2. Check your local council's licensing scheme. Mandatory licensing applies across England and Wales to HMOs with five or more occupants forming two or more households, but many councils add their own additional or selective schemes on top. Search the council's website for the specific ward or street, requirements differ between authorities and can change when a scheme is renewed or extended.
3. Get the property up to standard before applying. Councils expect working fire alarms, fire doors where appropriate, safe electrics with an up-to-date EICR, an annual gas safety check, adequate kitchen and bathroom provision for the number of occupants, and bedrooms that meet minimum size rules. Sorting these before submitting the application avoids conditions, delays or refusal.
4. Submit the licence application. Apply to the local authority covering the property, paying the relevant fee and providing details about the building, the proposed licence holder, the manager, tenancy arrangements and compliance certificates. You'll usually need to notify certain 'relevant persons' such as mortgage lenders and any freeholder that you've applied.
5. Comply with the licence conditions once granted. A licence typically lasts up to five years and comes with conditions covering occupancy limits, safety checks, waste, anti-social behaviour and reporting changes. Keep records, renew certificates on time, and apply for a new licence well before expiry, licences don't renew automatically and operating after one lapses exposes you to the same penalties as never having had one.

Common questions