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Housing Act 2004 Landlord Guide

Housing Act 2004 — HHSRS, HMO Licensing, Selective Licensing, Civil Penalties and Banning Orders

Housing Act 2004: the cornerstone of residential property regulation in England and Wales. Part 1 — HHSRS: 29 hazard categories; Category 1 (mandatory local authority action — improvement notice s.12; prohibition order ss.20-21; emergency prohibition order s.43); Category 2 (discretionary). Part 2 — HMO mandatory licensing: 5+ people/2+ households; 2018 extension removed storey requirement; fit and proper person test; 5-year licence. Part 3 — selective licensing: 6 statutory grounds (s.80); Secretary of State confirmation for designations over 20% of area. Part 4 — management orders (IMO; EDMO). Civil penalties (s.249A): up to £30,000 per offence; Rent Repayment Orders. Banning orders (Part 4A, Housing and Planning Act 2016): national database; unlimited duration.

15 min readUpdated 7 June 2026Last reviewed: 17 May 2026housing-act-2004hhsrshmo-licensingselective-licensing

Part 1 — HHSRS: the 29 hazard categories and mandatory local authority action

The Housing Health and Safety Rating System (HHSRS) replaced the Housing Fitness Standard with a risk-based assessment of 29 hazard categories. Each hazard is scored based on: the likelihood of the hazard occurring and causing harm within 12 months; the probable severity and spread of harm if it does occur. Hazards are divided into two categories based on the score:

  • Category 1 hazards (score above 1,000): the local authority has a MANDATORY duty to take enforcement action — it must serve one of: improvement notice (s.12) specifying the works required and a compliance period of at least 28 days; prohibition order (ss.20-21) prohibiting occupation or limiting occupants; emergency prohibition order (s.43) taking immediate effect without prior notice; or emergency remedial action (s.40) whereby the council carries out works and recovers costs from the landlord
  • Category 2 hazards (score below 1,000): discretionary powers — the local authority may serve a hazard awareness notice (non-binding) or take enforcement action
  • The 29 HHSRS hazard categories: physiological (damp and mould; excess cold; excess heat; asbestos and MMF; biocides; carbon monoxide and fuel combustion products; lead; radiation; uncombusted fuel gas; volatile organic compounds); psychological (crowding and space; entry by intruders; lighting; noise); infection (domestic hygiene; pests and refuse; food safety; personal hygiene; sanitation and drainage; water supply); accidents (falls associated with baths; falls on level surfaces; falls on stairs; falls between levels; electrical hazards; fire; flames and hot surfaces; collision and entrapment; explosions; position and operability of amenities; structural collapse and falling elements)
  • Most common Category 1 hazards in practice: excess cold; damp and mould growth; electrical hazards; fire (particularly in HMOs); falls on stairs; entry by intruders (inadequate door/window security)

Part 2 — HMO mandatory licensing and the 2018 extension

  • HMO mandatory licensing (HA 2004 ss.55-78): a mandatory HMO licence is required where a property is occupied by 5 or more persons forming 2 or more households as their only or main residence with shared amenities (bathroom; toilet; cooking facilities)
  • 2018 extension: the Housing Act 2004 (Licensing of Houses in Multiple Occupation) (Prescribed Descriptions) (England) Order 2018 (SI 2018/221) removed the previous requirement that the property must be at least 3 storeys — from 1 October 2018, any property meeting the 5-person/2-household test is mandatorily licensable regardless of storey count; this includes flats above shops and purpose-built flats in multiple occupation
  • Licence term: up to 5 years; must be granted unless the applicant is not fit and proper or the property is not reasonably suitable
  • Fit and proper person test (s.66): applicant must not have been convicted of fraud; violence; drug offences; housing/landlord offences; contravened housing/landlord legislation
  • Mandatory licence conditions: annual gas safety check; electrical installation condition report every 5 years (or on change of tenancy); ensure appliances in safe working order; ensure furniture complies with fire safety regulations; provide tenants with a gas safety certificate
  • Failure to hold a mandatory HMO licence: civil penalty up to £30,000 (s.249A); tenants can apply for a Rent Repayment Order covering up to 12 months of rent

Part 3 — selective licensing, civil penalties (s.249A) and banning orders (Part 4A)

  • Selective licensing (ss.79-100): local authorities can designate all or part of their area requiring ALL private rented properties (not just HMOs) to hold a licence; designation lasting up to 5 years and renewable
  • Statutory grounds for selective licensing (s.80) — the area must satisfy at least one: (1) low housing demand; (2) significant and persistent problem caused by anti-social behaviour; (3) properties in poor or very poor condition; (4) high level of migration into the area; (5) significant level of deprivation; (6) high levels of crime
  • Designations covering more than 20% of the authority's area require confirmation by the Secretary of State before coming into force
  • Civil penalties (s.249A, inserted by Housing and Planning Act 2016): local authorities can impose civil penalties of up to £30,000 per offence instead of criminal prosecution; offences: operating an unlicensed mandatory HMO; breaching mandatory HMO licence conditions; operating without a selective or additional licence; breaching HMO management regulations (SI 2006/372)
  • Rent Repayment Orders (RRO): First-tier Tribunal can require landlords to repay up to 12 months of rent to tenants where the landlord committed a relevant housing offence (unlicensed HMO; using violence to enter; illegal eviction; breach of improvement/prohibition notice; failure to comply with management orders)
  • Management orders (Part 4): Interim Management Order (IMO) — local authority takes over management for up to 12 months (renewable); collects rent and manages property; landlord retains ownership; Empty Dwelling Management Order (EDMO) — for properties empty for 6+ months causing nuisance
  • Banning orders (Part 4A, Housing and Planning Act 2016): First-tier Tribunal can issue a banning order prohibiting a landlord or property agent from letting or managing residential property; duration can be fixed or indefinite; national database of banning orders maintained by MHCLG (England)

Frequently asked questions

Does my property need a mandatory HMO licence under the Housing Act 2004?+

Yes, if it is occupied by 5 or more persons from 2 or more households as their only or main residence with shared amenities (bathroom; toilet; cooking). Since October 2018, the 3-storey requirement was removed — any property meeting the 5-person/2-household test requires a mandatory HMO licence, including flats above shops and purpose-built flats in multiple occupation. Failure to hold a mandatory HMO licence is a civil offence carrying a penalty of up to £30,000, and tenants can apply for a Rent Repayment Order covering up to 12 months of rent.

What is a Category 1 HHSRS hazard and what does the council have to do?+

A Category 1 HHSRS hazard is a housing hazard scoring above 1,000 on the HHSRS scale — indicating a serious risk of harm. Where an Environmental Health Officer identifies a Category 1 hazard, the local authority has a mandatory duty to take enforcement action: it must serve an improvement notice (requiring works within at least 28 days), a prohibition order, or take emergency remedial action. Category 1 hazards cannot simply be noted and ignored by the council. Common Category 1 hazards include: excess cold; damp and mould; electrical hazards; fire risks (especially in HMOs); falls on stairs.

What are the 6 grounds for selective licensing under the Housing Act 2004?+

Selective licensing designations under HA 2004 s.80 require the area to satisfy at least one of 6 grounds: (1) low housing demand; (2) significant and persistent anti-social behaviour problem; (3) properties in poor or very poor condition; (4) high level of migration into the area; (5) significant level of deprivation; (6) high levels of crime. Designations covering more than 20% of the authority's area also require Secretary of State confirmation before coming into force.

How large can civil penalties be under the Housing Act 2004?+

Up to £30,000 per offence, imposed by the local authority as an alternative to criminal prosecution under s.249A (inserted by Housing and Planning Act 2016). Offences subject to civil penalties include: operating an unlicensed mandatory HMO; breaching HMO licence conditions; operating without a selective or additional licence; breaching HMO management regulations. Additionally, tenants can apply to the First-tier Tribunal for a Rent Repayment Order (RRO) requiring repayment of up to 12 months of rent where the landlord committed a relevant housing offence.

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