A House in Multiple Occupation (HMO) is a property let to three or more unrelated people who share facilities such as a bathroom or kitchen. HMOs are subject to all the standard landlord obligations plus additional licensing, management, and safety requirements. From 1 May 2026, the Renters' Rights Act 2025 changes the tenancy agreements that must be used in HMOs, ASTs are out, Periodic Assured Tenancies are in.
What makes a property an HMO?
- Standard HMO: Three or more tenants, two or more households, shared facilities.
- Large HMO (mandatory licensing threshold): Five or more tenants, two or more households. Mandatory licensing applies nationally.
- Small HMO: Three or four tenants, subject to additional licensing where the local council has an additional licensing scheme.
- Bedsits, student houses, shared houses, and per-room lettings can all be HMOs, the test is the number of occupants and households, not the type of property.
Per-room vs whole-property HMO tenancy agreements
HMO landlords must decide whether to use a whole-property tenancy agreement (joint tenancy) or per-room tenancy agreements (individual tenancies).
| Agreement type | Pros | Cons |
|---|---|---|
| Joint tenancy (whole property) | All tenants jointly liable for full rent; simpler single agreement | All tenants must agree to any changes; one leaving affects all |
| Per-room individual tenancy | Each room let separately; one tenant leaving does not affect others | Each tenant liable only for their room; separate agreements needed for each |
HMO tenancy agreement requirements from 1 May 2026
- Must be a Periodic Assured Tenancy, no new fixed-term ASTs can be created after 1 May 2026, including for HMO per-room lettings.
- No Section 21. All possession claims must use Section 8 grounds, including Ground 14 (anti-social behaviour) and Ground 8 (rent arrears).
- Pet requests must be considered on their merits, shared houses present particular challenges and reasonable refusal is still permitted where another tenant objects.
- Section 13 rent increases, one per 12 months, 2 months' written notice, using prescribed form.
- HMO management regulations, separate from tenancy law; the landlord must comply with the HMO Management Regulations 2006 (as amended) regardless of tenancy type.
HMO licensing
Mandatory HMO licensing applies to properties with 5 or more occupants forming 2 or more households. Additional licensing schemes (smaller HMOs) vary by council, check your local authority. Operating an unlicensed HMO that requires a licence is a criminal offence with fines of up to £30,000. You also cannot serve a valid Section 8 notice on certain grounds if the property is unlicensed.
Essential documents for HMO landlords
- HMO Tenancy Agreement (LS-E-002, £29), LetSafe UK's per-room Periodic Assured Tenancy Agreement drafted for the post-May 2026 regime.
- Compliance Checklist (LS-E-020, £19), covers HMO-specific obligations including EICR, gas safety, fire safety, and licensing.
- Section 8 Notice Pack (LS-E-010, £19), updated for 2026, includes guidance on the most commonly used HMO grounds.
- Right-to-Rent Pack (LS-E-021, £14.99), per-occupant Right-to-Rent check records, essential for HMOs with multiple tenants.
LetSafe UK's HMO Tenancy Agreement (LS-E-002) is drafted as a Periodic Assured Tenancy for the post-1-May-2026 regime, covering per-room lettings with compliant pet and rent-increase clauses.