HMO licensing is a creature of the Housing Act 2004, not the Renters' Rights Act. It wasn't rewritten in 2025 — but enforcement has tightened, civil penalties have grown, and Rent Repayment Orders now follow a failed licence check within weeks. Here's the decision tree.
Is my property an HMO?
A property is an HMO if it is occupied by three or more people forming two or more households, sharing a kitchen, bathroom or toilet. A 'household' is a family unit or a single person. Five unrelated adults in a five-bedroom house? That is an HMO. Four unrelated adults sharing? That is an HMO. Two couples sharing? Still an HMO (two households).
The three licensing tiers
- Mandatory — any HMO with five or more persons in two or more households. Universal across England.
- Additional — a council-wide or ward-based designation extending licensing to smaller HMOs (e.g. three or four persons). Active in roughly 80 councils.
- Selective — single-household lets in a designated area, most common in coastal towns and inner-city wards. Roughly 70 councils have active selective schemes.
The pitfall that catches most landlords
A property you bought as a four-bed family home and now let to four sharers is an HMO the moment the fourth unrelated person moves in. If the council has an additional licensing scheme covering your ward, you need a licence — immediately. Landlords who miss this have been hit with civil penalties up to £30,000 per property and Rent Repayment Orders covering up to 12 months of rent.
Search '[council name] HMO licensing' and look for active 'additional' or 'selective' schemes. Our HMO Licensing Application Pack (£29) bundles the decision flowchart, the application checklist, the FRA template and the fit-and-proper declaration.
What a licence actually requires
- Fit-and-proper-person declaration by the landlord (and by the managing agent, if used).
- Minimum room-size compliance (6.51 m² single, 10.22 m² double — national minima; council-set minima are often larger).
- Fire detection to BS 5839 Grade D LD2 standard with interlinked alarms.
- Annual gas safety certificate and 5-yearly EICR — same as any let, but enforced per room in an HMO.
- Emergency lighting in shared escape routes (required in larger HMOs).
- Written management and maintenance schedule.
After licensing
A licence runs for up to 5 years. You must notify the council of any material change (extra storey, change of manager, change of occupancy) within 28 days. Licensing fees vary by council from £400 to £2,000+ per property — build this into your pricing.