Houses in Multiple Occupation (HMOs) are subject to licensing requirements that vary depending on the size of the property, the number of occupants, and the local authority in which the property sits. Getting this wrong carries serious consequences, unlimited fines, rent repayment orders, and being barred from future licensing.
Mandatory licensing
Mandatory HMO licensing applies across England to any property that is occupied by five or more people forming two or more separate households, where some or all of the occupants share facilities such as a kitchen or bathroom. This applies regardless of the number of storeys in the property.
A mandatory HMO licence is granted by the local authority and is valid for up to five years. Conditions typically include minimum room sizes (introduced in 2018: 6.51 sq m for a single adult, 10.22 sq m for two adults), adequate fire safety measures, and regular gas and electrical safety inspections.
Additional licensing
Local authorities can introduce additional licensing schemes that extend licensing requirements to smaller HMOs that fall outside mandatory licensing, typically properties with three or four occupants. Additional licensing schemes must be designated by the council and are area-specific. Check your local authority’s website to confirm whether an additional scheme applies in your target area before purchasing.
Selective licensing
Selective licensing applies to all privately rented properties, not just HMOs, within a designated area. It is typically introduced in areas the council considers to have low housing demand, significant anti-social behaviour, or poor property management. If you own any rental property in a selective licensing area, a licence is required regardless of property type or occupant numbers.
Practical implications
Before purchasing a potential HMO, confirm which licensing regime applies, check whether the property meets minimum room size requirements, and establish the local authority’s current processing time and licence conditions. Budget for the licence fee (typically £500–1,500 per licence) and any remedial works required to meet conditions. Purchasing an unlicensed HMO that requires a licence is a common and expensive mistake.