Quick answer: A House in Multiple Occupation (HMO) licence is a legal requirement for most properties rented to five or more people from at least two separate households who share facilities. Operating without one is a criminal offence under section 72 of the Housing Act 2004, carrying an unlimited fine, civil penalties, and the risk of tenants reclaiming up to 12 months’ rent through a Rent Repayment Order. This guide explains who needs a licence, what it costs, how long it lasts, and the consequences for landlords who skip it.
What Does an HMO Licence Mean?
An HMO licence is formal permission from your local council to rent out a property as a House in Multiple Occupation. It is not a certificate of quality, but a legal gateway. Without it, the landlord is breaking the law.
The licence confirms the property:
Is suitable for the stated number of occupants
Meets minimum room size standards (statutory minimum: single bedroom 6.51m²; two adults sharing 10.22m²; under-10s 4.64m²)
Has adequate fire safety measures (smoke alarms, fire doors, escape routes)
Provides sufficient kitchen and bathroom facilities for the number of occupants
Is managed by a “fit and proper” person (section 64(3), Housing Act 2004)
The legal basis is Part 2 of the Housing Act 2004 (sections 55–78), supported by the Licensing and Management of Houses in Multiple Occupation (Additional Provisions) (England) Regulations 2007 and the HMO Licensing (Prescribed Description) (England) Order 2018, which removed the three-storey rule from 1 October 2018.
Is It Illegal to Rent Without an HMO Licence?
Yes. Operating a licensable HMO without a licence is a criminal offence under section 72 of the Housing Act 2004. Consequences include:
Unlimited fine on conviction in the magistrates’ court (no cap since 2015)
Civil penalty of up to £30,000 as an alternative to prosecution, issued by the local authority
Criminal record, affecting future “fit and proper person” status
Rent Repayment Order (RRO): tenants can reclaim up to 12 months’ rent paid during the unlicensed period
Prohibition on serving a Section 21 notice (no-fault eviction) while unlicensed (Section 21 is being abolished under the Renters’ Rights Act 2025, expected May 2026)
Management orders: the council can take over management of the property
Applying for a licence retrospectively does not cure the breach. The period of unlicensed operation remains an offence, and rent paid during that period is potentially recoverable.
What Is the Difference Between a Shared House and an HMO?
A shared house is an informal term for a property where multiple people live together. It is not a legal definition.
An HMO is defined in section 254 of the Housing Act 2004. A property is an HMO if:
It is occupied by three or more people
Those people form two or more separate households (not all one family)
They share one or more basic amenities (kitchen, bathroom, or toilet)
They occupy it as their only or main home
The “household” definition (section 258) includes people related as spouse/civil partner, parent, grandparent, child, grandchild, sibling, uncle, aunt, nephew, niece, or cousin. Cohabitants in a relationship are treated as the same household. If even one person falls outside the family unit, the household count increases.
Occupation by students, asylum seekers, or migrant workers also counts for HMO purposes.
Do I Need an HMO Licence? — Occupant Numbers Explained
There are three types of licensing in England:
Mandatory HMO licensing (nationwide)
Additional licensing (introduced by some councils, covers smaller HMOs)
Selective licensing (applies in designated areas, regardless of HMO status)
Do I need an HMO licence for: | Mandatory HMO licence needed? |
|---|---|
2 tenants, 2 households, shared house | No — below the 3-person threshold for HMO status |
3 tenants, 2+ households, shared kitchen/bathroom | HMO, but no mandatory licence — only 3 people; check additional/selective licensing locally |
3 tenants in London (e.g., Barnet, Camden, Tower Hamlets) | Possibly yes — many London boroughs have additional licensing covering 3-person HMOs |
4 tenants, 2+ households | HMO, no mandatory licence — under 5-person threshold; check local additional licensing |
5 tenants, 2+ households | Yes — mandatory HMO licence required nationwide |
5 tenants in a purpose-built block of 3+ self-contained flats | No — exempt from mandatory licensing (but check additional/selective) |
London is complex: many boroughs have additional licensing covering HMOs with as few as 3 people. Always check your borough’s licensing register.
Converted blocks of flats (section 257 HMOs) are not subject to mandatory licensing but may be covered by additional licensing.
Does an HMO Licence Expire?
Yes. An HMO licence lasts up to five years, but councils may grant shorter periods if there are concerns about management or outstanding works.
There is no automatic renewal — landlords must reapply before expiry
Operating after expiry is the same offence as never having one
If a valid application is submitted before expiry, the licence is treated as continuing during the determination period (“duly made” application)
This is important for Rent Repayment Order defences
Is an HMO Licence Expensive?
Licence fees are set by each council and vary widely. They must reflect the council’s actual costs in administering the scheme (section 63, Housing Act 2004).
Typical fee ranges in England (2025–2026):
Location | Approximate licence fee (5 years) |
|---|---|
London boroughs (e.g., Barnet, Camden) | £800 – £1,800 |
Bristol | £1,564 (renewal); higher for new applications |
Birmingham | £700 – £1,200 |
Leeds/Manchester | £500 – £900 |
Smaller councils | £400 – £700 |
Most councils split the fee into an application/processing fee (non-refundable if refused) and a grant fee payable on issue. Discounts may be available for accredited landlords, early payment, or properties with good compliance history.
There is no maximum fee set by statute, but fees must be reasonable and proportionate. Landlords can challenge excessive fees, though this is rare in practice.
Can Neighbours Stop an HMO?
Neighbours cannot directly veto an HMO licence application, but they can influence the outcome:
Councils may invite representations during the application process
Neighbours can raise concerns about noise, overcrowding, parking, rubbish, or anti-social behaviour
These are considered but not determinative
After a licence is granted, neighbours can make formal complaints to the council’s housing enforcement team. Persistent, evidenced complaints can trigger a licence review or conditions being added. In extreme cases, the council can revoke a licence.
Planning law:
Changing a property to HMO use (from C3 to C4 use class) can require planning permission in some areas. Councils can introduce Article 4 Directions, removing Permitted Development rights, so landlords need explicit planning consent. If planning permission is needed and not obtained, this is a separate enforcement issue.
What Are the Legal Requirements for an HMO?
A licensed HMO must comply with several legal frameworks:
Licence Conditions (Housing Act 2004, s.67):
Minimum room sizes (single adult: 6.51m²; two adults: 10.22m²; under-10s: 4.64m²)
Adequate cooking facilities (minimum one set per 5 occupants as a guideline)
Adequate bathroom/WC facilities (generally one per 5 occupants)
Properly maintained gas and electrical systems
Management Regulations:
HMO Management Regulations 2006 (SI 2006/372) require managers to:
Keep common parts clean and in repair
Maintain fire precautions (alarms, extinguishers, escape routes)
Ensure adequate lighting in common areas
Provide bins/waste facilities
Respond to emergency repairs promptly
Fire Safety:
The Regulatory Reform (Fire Safety) Order 2005 applies to common parts. The Building Safety Act 2022 introduced new duties for higher-risk buildings (18m+). Local fire risk assessments are typically required for HMOs.
HHSRS (Housing Health and Safety Rating System):
Councils assess properties against 29 hazard categories. Category 1 hazards (most serious) must be addressed; councils can take emergency action.
What Is Mandatory Licensing?
Mandatory licensing is the national scheme requiring a licence for any HMO that is:
Occupied by 5 or more people
Forming 2 or more households
Who share facilities (kitchen, bathroom, toilet)
As their only or main home
The HMO Licensing (Prescribed Description) (England) Order 2018 removed the storey requirement, widening the scope. Around 220,000+ properties now fall under mandatory licensing in England.
Key exemptions:
Properties occupied by only two people (even two households)
Purpose-built blocks of three or more self-contained flats
Buildings managed by local authorities, housing associations, police, or fire authorities
Certain student halls of residence
Buildings occupied principally for religious community purposes
Owner-occupied properties with no more than two lodgers
What Certificates Do You Need for an HMO?
When applying for an HMO licence, landlords must provide:
Mandatory documents:
Gas Safety Certificate — annual inspection by a Gas Safe registered engineer
Electrical Installation Condition Report (EICR) — required every 5 years for all rented properties
Energy Performance Certificate (EPC) — minimum rating of E required
Fire Risk Assessment — required for common parts; recommended for all HMOs
Supporting documents typically requested:
Floor plan showing room dimensions and layout
Proof of landlord/manager identity
Smoke alarm installation confirmation
Carbon monoxide detector installation confirmation
Details of the property manager (if different from landlord)
Evidence of “fit and proper person” status
Who is exempt from HMO licensing?
See statutory exemptions above. For most private landlords, if the property meets the HMO definition and has 5+ occupants, there is no exemption.
What Happens If a Tenant Lives in an Unlicensed HMO?
Tenants have significant rights:
Rent Repayment Order (RRO): Apply to the First-tier Tribunal (Property Chamber) to recover up to 12 months’ rent paid during the unlicensed period. Application must be made within 12 months of the offence.
Counterclaim: If your landlord brings possession proceedings or a rent arrears claim, you can raise the unlicensed status as a counterclaim or equitable set-off.
Report to the council: The local housing enforcement team can prosecute the landlord and issue a civil penalty of up to £30,000.
Section 21 protection: An unlicensed HMO landlord cannot serve a valid Section 21 notice. Any such notice served while unlicensed is invalid.
How Caira Can Help
If you are a landlord managing an HMO and want to ensure your property is fully compliant—or you’re facing questions about licensing or eviction notices—Caira can support you:
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Explore your options: Learn about Rent Repayment Orders, potential tenant counterclaims, and how to respond effectively
Prepare documents: Organise your evidence and create structured statements or tribunal applications for legal processes
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Disclaimer: This article is general information, not financial, tax, or legal advice.
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