HMO licence conditions govern how the property must be managed, maintained, and occupied throughout the licence period (typically 5 years). Breach of any licence condition is a criminal offence under s.72(3) Housing Act 2004, subject to a civil penalty of up to £30,000 or a rent repayment order from current tenants. Local authorities also have powers to revoke or refuse to renew an HMO licence where conditions have been persistently breached. Keeping meticulous compliance records is therefore as important as achieving initial compliance.
The mandatory conditions imposed by national regulations provide a floor of protection. Local authorities then layer on their own discretionary conditions based on the specific characteristics of the property, the neighbourhood, and the landlord's history. These discretionary conditions can be more onerous than the national minimum — and landlords who consider them unreasonable have a statutory right to apply to the First-tier Tribunal (FTT) to have them varied.
Mandatory HMO licence conditions — national minimum requirements
Schedule 4 of the Housing Act 2004 and the Licensing and Management of Houses in Multiple Occupation (Additional Provisions) (England) Regulations 2007 (SI 2007/1903) impose mandatory conditions on every HMO licence:
- Gas safety (mandatory condition): The licence holder must ensure that a gas safety check is carried out at least every 12 months by a Gas Safe registered engineer, and that a copy of the gas safety certificate is provided to the local authority within 7 days of issue (and to each tenant). This applies to all gas appliances and flues in the HMO. Where there is no gas supply, this condition does not apply
- Electrical Installation Condition Report (EICR) — mandatory condition: Every HMO licence must impose a condition requiring an EICR carried out by a registered electrician at intervals of not more than 5 years. The EICR must certify that the electrical installation is satisfactory for continued use. Where the EICR is unsatisfactory, remedial work must be carried out within 28 days (or such shorter period as specified by the local authority) and a fresh EICR obtained. The EICR certificate must be provided to the local authority on request and to each tenant within 28 days of the check
- Smoke alarms (mandatory condition): Smoke alarms must be installed on every storey of the HMO where there is a room used as living accommodation. From 1 October 2022 (Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022), alarms must be interlinked (either hard-wired or radio-frequency interlinked) in HMOs — a single alarm is no longer sufficient. Alarms must be tested by the landlord on the first day of each new tenancy
- Carbon monoxide alarms (mandatory condition): CO alarms must be installed in every room containing a fixed combustion appliance (other than a gas cooker). Since 1 October 2022, CO alarms are also required in rooms with gas boilers and gas fires — not just solid fuel appliances. CO alarms must also be tested on the first day of each new tenancy. Interlinked CO alarms are required in HMOs
- Room size compliance (mandatory condition): Room sizes must meet the minimum standards for sleeping accommodation: 6.51 m² for a single adult sleeping room; 10.22 m² for a double adult sleeping room; 4.64 m² for a child under 10 years. These are the minimum standards effective from 1 October 2018. A condition must be imposed on every licence specifying the maximum number of persons who may occupy each sleeping room
Discretionary licence conditions — local authority variations
In addition to the mandatory conditions, local authorities can impose their own discretionary conditions under s.67(2) Housing Act 2004. These vary significantly between local authorities:
- Management plan condition: Most local authorities require the licence holder to comply with a written management plan that sets out how the HMO will be managed — cleaning rotas for common parts, waste management arrangements, noise management, contact details for the responsible person, emergency procedures. The management plan may need to be updated annually or on any material change
- Refuse and waste management condition: Many local authorities impose specific conditions on the provision and use of refuse bins (number, type, location, emptying schedule) and the storage of refuse between collections. Failure to manage waste in an HMO is a persistent neighbourhood complaint that triggers enforcement activity
- Maximum occupancy condition: The licence specifies the maximum number of persons who may occupy the HMO (and per room). Local authorities may set the maximum occupancy lower than the physical room sizes would technically permit, based on the shared facilities (bathroom and kitchen capacity) and local housing conditions. An occupancy condition limits the income the HMO can generate and is often challenged by landlords
- Furniture and fitting conditions: Some authorities require specific furniture standards — fire-resistant soft furnishings (complying with the Furniture and Furnishings (Fire) (Safety) Regulations 1988), adequate kitchen facilities per occupant (cooking rings, oven space, refrigeration), minimum bathroom provision
- Condition requiring notification of changes: Most licences require the licence holder to notify the local authority within a specified period (typically 28 days) of any change in the management arrangements, a change in the identity or address of the licence holder, or a change in the number of persons permitted to occupy the property
- Anti-social behaviour management condition: Local authorities in areas with a history of HMO-related ASB may impose conditions requiring the landlord to take specific steps to prevent and address anti-social behaviour by tenants — including the tenant selection process, referencing, tenancy agreements containing ASB clauses, and a response protocol for complaints
Compliance record-keeping — essential for licence renewal
Every HMO licence holder should maintain a compliance file containing:
- Gas safety certificates: Keep copies of all annual gas safety checks for the duration of the licence and for at least 2 years after each check. Provide to local authority within 7 days of issue and to tenants annually (and to new tenants before or at the start of their tenancy)
- EICR reports: Keep the original EICR and any Electrical Installation Certificate (EIC) or Minor Electrical Installation Works Certificate (MEIWC) for remedial work. Provide to local authority on request and to tenants within 28 days of the check
- Alarm test records: Keep a log of smoke and CO alarm tests — date, result (pass/fail), tester's name. Test at the start of each new tenancy and keep the record
- Room size records: Keep the floor plan showing room sizes, annotated with the room numbers and permitted maximum occupancy figures from the licence
- Management plan and correspondence: Keep the signed management plan, any correspondence with the local authority about the HMO, and records of any complaints received and actions taken
Varying and appealing HMO licence conditions — the FTT route
Where a landlord considers that a condition is unnecessary, unreasonable, or unduly onerous, there are two routes to challenge:
- Application to vary conditions (s.68 Housing Act 2004): The licence holder can apply to the local housing authority at any time to vary the terms of a licence — including the conditions. The authority must consider the application and may grant or refuse it. Where it refuses, it must give written reasons. This is the primary route for challenging conditions that are more onerous than the local authority's standard practice or that are disproportionate to the characteristics of the property
- First-tier Tribunal (Property Chamber) appeal: Under s.229 and Schedule 5 Housing Act 2004, a landlord who is aggrieved by the grant of a licence (including the conditions imposed) may appeal to the FTT within 28 days of the licence decision. The FTT has jurisdiction to confirm, reverse, or vary any decision of the local housing authority concerning HMO licensing, including varying the conditions
- Grounds for successful condition appeals: Conditions that are disproportionate to the risk posed by the property; conditions that go beyond what the national regulations require without reasonable justification; conditions that are so onerous as to make the HMO unviable without any proportionate benefit; conditions that discriminate between similar licence holders without objective justification
- Revocation on breach: Where an HMO licence holder persistently fails to comply with conditions — or commits a serious breach such as failure to maintain gas safety — the local authority may apply to revoke the licence under s.70 Housing Act 2004. Revocation has significant consequences: the HMO must cease to be occupied as an HMO, and the landlord may face an interim or final management order under Part 4 of the Act
Frequently asked questions
What are the mandatory conditions on an HMO licence?+
Every HMO licence in England must include conditions requiring: an annual gas safety check by a Gas Safe registered engineer; an EICR every 5 years; interlinked smoke alarms on every storey; CO alarms in rooms with fixed combustion appliances; and maximum occupancy per room based on room size minimums (6.51 m² single, 10.22 m² double). These are imposed by national regulations and cannot be removed by the local authority.
Can a landlord appeal against HMO licence conditions?+
Yes. Under Schedule 5 Housing Act 2004, a landlord can appeal to the First-tier Tribunal (Property Chamber) within 28 days of the licence decision, including against specific conditions that are considered disproportionate or unreasonable. Alternatively, the landlord can apply to the local authority to vary the conditions at any time during the licence period under s.68 Housing Act 2004.
What is the EICR condition on an HMO licence?+
An EICR (Electrical Installation Condition Report) must be carried out at intervals of not more than 5 years by a registered electrician. Where the EICR is unsatisfactory, remedial work must be completed within 28 days (or less if specified). The EICR must be provided to the local authority on request and to tenants within 28 days of the check. This is a mandatory licence condition.
What happens if an HMO landlord breaches a licence condition?+
Breach of an HMO licence condition is a criminal offence under s.72(3) Housing Act 2004, subject to a civil penalty of up to £30,000 or prosecution. Tenants can also apply for a Rent Repayment Order requiring the landlord to repay up to 12 months' rent. Persistent breaches may lead to licence revocation under s.70 Housing Act 2004.