Everything you need to know about mandatory and additional HMO licensing, from the rules that apply to your property to the penalties for non-compliance.
Houses in Multiple Occupation (HMOs) are subject to strict licensing requirements in the UK, and getting this wrong can result in unlimited fines, rent repayment orders and even prosecution. This guide covers the essentials every HMO landlord needs to know.
What is a mandatory HMO licence?
Since 2018, mandatory HMO licensing applies to any property that is rented to 5 or more people from 2 or more separate households who share facilities such as a kitchen or bathroom. This is a national standard, meaning it applies regardless of the local authority area.
Before 2018, mandatory licensing only applied to HMOs of 3 or more storeys. The change significantly expanded the scope of licensing and caught many landlords off guard.
Additional and selective licensing
Beyond mandatory licensing, many local authorities operate additional licensing schemes that apply to smaller HMOs — often 3 or 4 occupants. Some councils also operate selective licensing, which requires all private rented sector properties in defined areas to be licensed, not just HMOs.
You must check with your specific local authority to understand which licensing schemes apply in your area.
How to apply
Licence applications are made through your local authority. You will need to provide details of the property layout, facilities, fire safety measures, gas and electrical safety certificates, and your own background as a landlord. Fees vary by council but typically range from £500 to £1,500 per licence.
Licences are generally valid for up to 5 years, after which renewal applications must be submitted.
Penalties for non-compliance
Operating an unlicensed HMO can result in an unlimited fine. Local authorities can also issue Rent Repayment Orders requiring landlords to return up to 12 months of rent to tenants. These consequences make HMO compliance absolutely critical.
Our HMO management service handles all licence applications, renewals and compliance monitoring on your behalf. Contact us to discuss your HMO property.