What is an HMO?
A House in Multiple Occupation (HMO) is a property occupied by 3 or more people forming 2 or more separate households, where at least one basic amenity (kitchen, bathroom, or toilet) is shared. Common examples include student houses, professional house shares, and bedsit buildings.
Mandatory HMO licensing threshold
Mandatory HMO licensing under the Housing Act 2004 applies to any HMO with 5 or more occupants from 2 or more households with shared amenities. The old 3-storey rule was removed in October 2018, the threshold now applies regardless of the number of storeys.
- 5+ occupants from 2+ households = mandatory HMO licence required
- Applies to all building types: houses, flats, converted buildings
- No minimum storeys requirement, a single-storey bungalow qualifies
- Resident landlord exemption: if the landlord lives in the property and shares with fewer than 2 tenants, no HMO licence is required
Additional and selective licensing
Local authorities can designate areas for additional HMO licensing (covering smaller HMOs below the mandatory threshold) or selective licensing (covering all private rented properties). Many major cities operate extensive schemes. Check your council's licensing portal using the property postcode, the landlord's obligation to check is not discharged by ignorance of the scheme.
HMO licence conditions
- Minimum room sizes: sleeping rooms for adults must be at least 6.51 m� (single) or 10.22 m� (double)
- Annual gas safety check (CP12) required
- 5-yearly EICR (electrical installation condition report)
- Working smoke alarm on every storey, CO alarm in every room with a solid fuel appliance
- Adequate refuse storage for the number of occupants
- Fit and proper person requirement for licence holder and manager
Penalties for operating without a licence
- Civil penalty: up to �30,000 per offence
- Rent repayment order: tenants can claim up to 12 months' rent back
- Banning order for repeat offenders
- Unlicensed HMO landlords cannot validly seek possession on certain grounds
Operating an HMO without a required licence is a criminal offence. Use your council's postcode checker to confirm whether a licence is needed before tenants move in.