What Is An HMO And Do You Need An HMO Licence?

Do you need an HMO licence? In England, you must have a mandatory HMO licence if your property is let to five or more people who form more than one household and share a kitchen, bathroom or toilet. Your council may also require a licence for smaller HMOs, or for any rented property in certain areas, through additional or selective licensing schemes. Check with your local council before you let.

This guide covers England. It is general information, not legal advice.

What is an HMO property?

HMO stands for house in multiple occupation. This means a house or flat that is rented out by at least three people who are not from a single household.

A household can include a single person, couples, parents with children, foster parents, and carers.

In an HMO the occupants will also typically share communal spaces including the kitchen, bathroom, and sometimes living spaces too.

There are many types of accommodation that could be deemed an HMO. These may include, but are not limited to:

• Student accommodation
• Bedsits
• Bed and breakfast
• Hostels
• Guesthouses
• Houses let to lodgers

Is 3 or 4 tenants an HMO?

Yes. A property let to three or more people who form more than one household and share facilities is an HMO. That doesn't automatically mean it needs a licence. Mandatory licensing only applies from five people, but many councils run additional licensing schemes that cover HMOs with three or four tenants. Your council's website will say whether a scheme applies to your street.

What makes a property an HMO?

For a property to count as an HMO it should have several common features. These are:

• Occupants are not forming a single household (see note above)
• Occupants must be using the property as their only or main residence
• The accommodation must be used solely for residential purposes
• One of the occupants must be paying rent

All of the above must be in place for the property to legally be classed as an HMO (unless the property is exempt, see below). Different rules apply to some converted blocks of flats (see below).

Converted blocks of flats (section 257 HMOs)

A building converted into self-contained flats can still be an HMO. Under section 257 of the Housing Act 2004, it counts as an HMO if:

• the conversion did not meet the 1991 Building Regulations (or the regulations in force at the time, if converted later), and
• fewer than two-thirds of the flats are owner-occupied.

For example, a Victorian house split into four flats in the 1980s, where three of the flats are let and the conversion was never brought up to 1991 standards, would be a section 257 HMO. Section 257 HMOs don't fall under mandatory licensing, but a council can include them in an additional licensing scheme.

What makes HMOs different to other rental properties?

HMOs can house a high number of people. To avoid the property being exploited and to protect the safety and well-being of tenants, local authorities take health and safety in HMOs very seriously. Tenant complaints are likely to be acted on quickly if they are reported to the council's private housing team.

Councils can prosecute landlords who fail to comply and, in serious cases, take over the management of an HMO themselves. In addition, to run an HMO you may need a licence.

Types of HMO and property licence

There are three types of licence. A property can need more than one check, so look at all three.

Mandatory HMO licensing

This applies across England to any HMO let to five or more people forming more than one household, where tenants share a toilet, bathroom or kitchen. The number of storeys no longer matters. The old "three or more storeys" test was removed in October 2018.

Additional HMO licensing

Councils can extend licensing to smaller HMOs that fall outside the mandatory scheme, such as shared houses with three or four tenants. They usually do this in areas where a significant number of HMOs are poorly managed, for example where poor property conditions or anti-social behaviour are causing problems.

Selective licensing

Selective licensing goes further. In a designated area, every privately rented property may need a licence, including single-household lets that are not HMOs. Councils use it to tackle issues such as low housing demand, anti-social behaviour or poor property conditions.

Additional and selective schemes are set locally and normally last up to five years, so the rules can change street by street. Use the GOV.UK licence finder or your council's website to check your address.

Landlord responsibilities when managing an HMO

Landlords operating an HMO need to stay on top of health and safety issues and make sure their property stays compliant with HMO letting guidelines.

Key things to keep in mind when managing an HMO:

• Gas safety: annual checks
• Electrical safety: checks made every five years
• Fire safety: smoke and carbon monoxide alarms fitted and maintained
• Rubbish disposal facilities provided
• Adequate cooking, cleaning, and washing facilities provided and maintained
• Communal areas to be kept clear and clean
• Managing overcrowding issues

Do you need an HMO licence?

Contact your council before you let a property to three or more people from different households. Any HMO that meets the mandatory definition needs a licence unless it qualifies for an exemption (see below). Your council may also require a licence under an additional or selective scheme.

A licence lasts for a maximum of five years, and you need a separate licence for each HMO you own.

You must have a mandatory licence if all of the following apply:

• the property is rented to 5 or more people who form more than 1 household
• some or all tenants share toilet, bathroom or kitchen facilities
• at least 1 tenant pays rent (or their employer pays it for them)

You must meet HMO obligations and safety checks, including making sure the property is not overcrowded and that there are enough facilities for the people living there. You're responsible for repairs to communal areas.

HMO fines and penalties

Letting an HMO that needs a licence without one is a criminal offence. In England, the council can:

• Prosecute you. A court can impose an unlimited fine.
• Issue a civil penalty instead of prosecuting. The maximum is £40,000 for offences committed on or after 1 May 2026 (it was £30,000 before that date).
• Apply for a rent repayment order. You can be ordered to repay up to 24 months' rent for offences on or after 1 May 2026, or up to 12 months' rent for earlier offences. Tenants can apply too.
• Take over management of the property through a management order.

Councils also check that the licence holder is a "fit and proper person", so a licensing offence can affect your ability to hold licences in future.

The 2026 increases come from the Renters' Rights Act 2025 and apply in England only. Wales uses the same Housing Act 2004 licensing rules, but these increases don't apply there, and Welsh landlords must also register with Rent Smart Wales.

• Landlords: check if you need an HMO licence and apply (GOV.UK)
• Tenants: houses in multiple occupation (GOV.UK)

HMO licence exemptions

Not every shared property is an HMO for the purposes of the Housing Act 2004. Common exemptions include:

• a property occupied by two people living as two households (a two-person flat share)
• buildings managed or controlled by public sector bodies (such as the police or the NHS), the London Hostels Association or a registered social landlord
• student accommodation managed by the university or college
• buildings converted entirely into self-contained flats that meet the relevant Building Regulations (otherwise see section 257 HMOs above)
• a resident landlord and their household living with no more than two lodgers
• buildings regulated under other legislation, such as care homes or bail hostels
• buildings entirely occupied by freeholders or long leaseholders

Even if a property is exempt from HMO licensing, you may still need to provide adequate fire precautions and suitable amenities.

HMO letting guidelines

The first thing you need to do if you're letting out a property with multiple occupants is work out whether you need a licence.

Other things to consider include:

Planning permission for HMOs

Turning a family home into a small HMO for three to six unrelated people (use class C4) doesn't usually need planning permission, because it's permitted development. However, many councils have an Article 4 direction that removes this right, which means you need planning permission even for a small HMO. An HMO for seven or more people is classed as "sui generis" and always needs planning permission.

Check with your council's planning team before you convert. For more detail, see use classes (Planning Portal).

Standards and regulations

An HMO must meet the minimum standards required by law to legally be let. You will need to make sure the property is:

• Safe, for example: a valid gas safety record, renewed every year and sent to the council; an electrical installation condition report (EICR) at least every five years; working smoke alarms, and carbon monoxide alarms where required; and safety declarations for any electrical appliances you provide, when the council asks for them.
• Managed properly. The manager of the house, you or an agent, must be a "fit and proper person", for example with no criminal record or breach of landlord law or codes of practice.
• Equipped with adequate sanitary and kitchen facilities. The house must be suitable for the number of occupants (this depends on its size and facilities).

Fire safety and escape routes. Fire safety is one of the main things a council checks. As well as the mandatory smoke alarm on every storey (and a carbon monoxide alarm in any room with a fixed combustion appliance, such as a gas boiler), councils commonly set licence conditions requiring:

• fire doors on bedrooms, kitchens and other rooms that open onto the escape route
• a protected escape route, such as a hallway and staircase, kept clear of obstructions and stored items
• a fire risk assessment for the shared areas
• fire detection and alarm systems suited to the size and layout of the property

The exact standard depends on the property's size, layout and number of occupants, so check your council's HMO fire safety guidance before you apply.

You should also check with your local council as they may have additional conditions that you must meet for your licence. For example, they may require you to improve the standard of your facilities. They should let you know of these specifics when you apply for your HMO licence.

Basic rules to follow when running an HMO let

The specifics vary depending on the local council's guidelines, but the points below are a general guide to making sure an HMO is managed properly and is suitable for the number of occupants.

• Usually no more than two occupants per room (check your council's standards)
• Rooms should only be shared by people who consent, i.e. couples.
• No one 12 years or older should share a room unless they are a cohabiting couple.
• No bathroom, toilet, office, lobby, kitchen, cupboard, corridor or circulation space may be used for sleeping.
• All rooms used for sleeping must have access to natural light and ventilation.
• While basements and lofts can be used as sleeping accommodation, there are additional hazards often associated with these spaces, such as fire hazards, that must be considered.
• Inner bedrooms are not acceptable (this is a bedroom which can only be accessed by passing through another room, such as a lounge, kitchen, or bedroom).

Minimum bedroom sizes (national standard)

Since October 2018, every licensed HMO in England must meet these minimum bedroom sizes:

• 6.51 m² for one person over 10 years of age
• 10.22 m² for two people over 10 years of age
• 4.64 m² for one child under the age of 10

Any room smaller than 4.64 m² may not be used as sleeping accommodation, and the landlord must notify the local housing authority of any room in the HMO with a floor area of less than 4.64 m².

Floor area under a ceiling lower than 1.5 metres doesn't count towards these minimums.

Common rooms required

The kitchen, living room and bedsit sizes below are an example of one council's standards. Kitchen and living space requirements vary between councils, so check your own council's HMO amenity standards.

HMO occupied by one to five people:

The kitchen must have a minimum size of 7 square metres and there must be an additional living room or dining room with a minimum size of 11 square metres, or there must be a kitchen diner with a minimum size of 16.5 square metres.

HMO occupied by six to 10 people:

The kitchen must have a minimum size of 10 square metres and there must be an additional living room or dining room with a minimum size of 16.5 square metres, or there must be a kitchen diner with a minimum size of 19.5 square metres.

Kitchens must also be a minimum of 1.8 metres wide to allow occupants to move around safely.

Bedsits (rooms provided with cooking facilities):

• If occupied by one person: there is a minimum room size of 13 square metres
• If occupied by two people: there is a minimum room size of 20.5 square metres

No separate communal lounge, kitchen, or dining room is required.

Documents for an HMO licence application

As part of the application for an HMO licence you will likely need to provide the following supporting information:

• Photo ID of the proposed licence holder
• Photo ID of the proposed manager
• Latest fire alarm test certificate
• An Electrical Installation Condition Report carried out within the last five years proving the condition of the whole of the fixed electrical wiring and lighting circuits in the property
• Current landlord gas safety record (gas safety certificate)
• An example of a tenancy agreement or terms of occupation
• Portable appliance testing (PAT) certificate covering all portable electrical appliances supplied to tenants
• Copy of the fire risk assessment
• Floor plans detailing the layout of every floor

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