Housing Act 2004 HMO definition — the three statutory tests
Standard test (HA 2004 s.254(2)): property is an HMO if: (1) occupied by 3 or more persons; (2) from 2 or more separate households; (3) as their only or main residence; (4) who share a basic amenity (toilet; bathroom; kitchen) OR where a basic amenity is lacking. All four elements must be met. Household: single person; couple (married/civil partnership/cohabiting including same-sex); family group (parents; grandparents; siblings; children; their partners). Two or more unrelated individuals = multiple households even if close friends. Self-contained flat test (s.254(3)): flat in converted building (not purpose-built block); 3+ persons; 2+ households; shared amenity. Converted building test (s.254(4)): building containing at least one non-self-contained unit where occupant must leave their unit to access a shared basic amenity.
- Mandatory licensing threshold (HA 2004 s.55): 5+ persons from 2+ households — 3 or 4 person HMOs are still HMOs (management regulations apply) but not mandatory licensable unless in additional licensing area
- Exempt from HMO definition: properties managed by registered providers (housing associations); religious communities; NHS trusts; student halls managed by universities — even if occupants share amenities
- Household definition critical: three adult siblings sharing a house may be one household (extended family); four unrelated friends sharing are four households — same physical arrangement; different HMO status
- Additional HMO licensing: local authorities can designate additional licensing areas covering 3+ or 4+ person HMOs — check whether your property location is in an additional licensing area
Planning C4 and Sui Generis use classes, Article 4 directions and devolved positions
Planning use classes (TCPA 1990 Use Classes Order): C3 (dwellinghouse: 1 household; or up to 6 persons as single household); C4 (small HMO: 3-6 unrelated persons from 2+ households sharing basic amenities); Sui Generis (large HMO: 7+ persons from 2+ households; or any HMO where Article 4 direction removes PD right). C3→C4 change: historically permitted development (no planning permission required); where Article 4 direction in force — planning permission required. C3/C4→Sui Generis: always requires planning permission. Article 4 direction areas (examples): Oxford; Cambridge; Leeds; York; Southampton; Nottingham; Bristol; Bath; Newcastle — check with local planning authority before converting.
- Key distinction: planning threshold (Sui Generis = 7+ persons) differs from mandatory licensing threshold (5+ persons) — 5 or 6 person HMO requires mandatory licence but is still C4 use class (not Sui Generis) unless in Article 4 area
- Article 4 direction: where in force, planning permission required for ANY conversion from C3 to C4 (even 3-person small HMO); check LPA planning portal or contact planning department before conversion
- Scotland: Civic Government (Scotland) Act 1982 — HMO licence required at 3+ persons from 2+ households; apply to Scottish council before advertising; no separate planning C4 equivalent in same way
- NI: Houses in Multiple Occupation Act (NI) 2016 — HMO at 3+ persons from 2+ households; apply to NI council for HMO licence; NI Landlord Registration also mandatory