Everything you need to know about mandatory, additional and selective HMO licensing — requirements, applications, fees and compliance obligations.
HMO licensing is one of the most complex areas of UK landlord regulation. Getting it wrong can result in unlimited fines, rent repayment orders of up to 12 months' rent, and prosecution. This guide covers everything you need to know.
What is an HMO?
A House in Multiple Occupation is a property rented to three or more tenants who form more than one household and share facilities such as a bathroom or kitchen. A "household" is typically a single person, a couple, or a family unit. Three separate individuals sharing a house are three households and therefore form an HMO.
Mandatory national licensing
Since October 2018, all HMOs with five or more occupants from two or more households require a mandatory licence from the local authority. This replaced the previous requirement, which only applied to three-storey or taller HMOs.
The mandatory licence covers all HMO types — whether a house, a flat, or a purpose-built block. If your HMO has five or more occupants, you need a mandatory licence regardless of how many storeys the building has.
Additional licensing schemes
Many local authorities operate additional licensing schemes that cover HMOs with three or four occupants. These schemes must be designated by the council and run for a set period (usually five years). You must check your specific local authority's website to understand whether additional licensing applies in your area.
Selective licensing
Some councils operate selective licensing across defined geographical areas, requiring all privately rented properties — not just HMOs — to be licensed. Again, this varies by location and requires checking with your local authority.
How to apply for an HMO licence
Applications are made to the local authority where the property is located. You will typically need to provide: - Detailed floor plans showing room dimensions, layout and facilities - Gas Safety Certificate - Electrical Installation Condition Report (EICR) - Fire risk assessment and fire safety documentation - Details of management arrangements - Landlord's DBS check or declaration - Application fee (£500-£1,500 typically)
Conditions attached to licences
Licences come with conditions that must be complied with throughout the licence period. Common conditions include minimum room sizes (a single room for sleeping must be at least 6.51m² under national standards), adequate kitchen and bathroom facilities for the number of occupants, functioning fire detection and alarm systems, and maintenance of all installations.
Fit and proper person test
Local authorities assess whether landlords and managers are "fit and proper" persons before granting a licence. Previous criminal convictions (particularly relating to fraud, dishonesty, violence or drugs), civil penalties under landlord legislation and previous licence refusals can all affect eligibility.
Penalties for unlicensed HMOs
Operating an HMO without a required licence is a criminal offence. Penalties include unlimited fines, civil penalties of up to £30,000, and Rent Repayment Orders requiring landlords to repay up to 12 months of rent to tenants.
Our HMO management service handles the full licensing process, from application to renewal, ensuring you remain compliant at all times.