HMO Licence Requirements: Complete Guide to UK HMO Licensing 2025

Updated: 9 April 2025

HMO Licence Meaning

HMO stands for Houses in Multiple Occupation and is a type of property occupied by at least three What is an HMO Licence and Why You Need One

HMO stands for Houses in Multiple Occupation and is a type of property occupied by at least three people who are not from the same family or household, but who share the same facilities like the bathroom and kitchen. In order to rent out certain types of HMO properties, landlords must obtain an HMO licence which is required by UK law. These HMO licence requirements help ensure properties meet specific standards set out by local councils.

These regulations exist to protect the safety and wellbeing of HMO occupants. There are 4 core areas that determine whether an HMO licence will be granted:

• The safety and standards of property facilities, including fire safety
• The overall maintenance of the property
• The number of occupants in the HMO
• The management of the property

If you’re required to obtain an HMO licence and fail to do so, you could face severe penalties and fines. Understanding when an HMO licence is needed and what the specific HMO licence requirements are is essential for every landlord.

Table of Contents

• Do I Need an HMO Licence?
  • 5 or More Occupants
  • 3 – 4 Occupants
  • 1- 4 Occupants
• HMO Licence Flow Chart
• HMO Licence Requirements
• HMO Licence Costs

Do I Need an HMO Licence?

When you need an HMO licence depends on several factors, including the type of property you plan to rent and the number of occupants. Additionally, the area where your HMO property is located may have different HMO licence requirements.

HMO Licence Requirements for 5 or More Occupants

If your property has 5 or more occupants from two or more households who share facilities such as the kitchen or bathroom, you must obtain a Mandatory HMO Licence regardless of where your property is in England or Wales. This is legally considered a “Large HMO” and requires a licence regardless of local requirements.

In some areas, known as Article 4 areas, additional requirements apply for large HMOs beyond the Mandatory HMO Licence. An Article 4 direction is a planning tool used by local authorities to control HMO growth in certain areas. It overrides the automatic right to convert a property into an HMO and requires planning permission (C4).

Learn more about Article 4 directions in our detailed guide.

HMO Licence Requirements for 3-4 Occupants

If your property houses 3 or 4 occupants, it’s legally classified as an HMO. While a Mandatory HMO Licence isn’t required, you may still need to obtain a licence depending on your local council’s HMO licence requirements.

Some local authorities have implemented an Additional HMO Licence scheme requiring landlords to apply. These schemes may not cover the entire council area but could concern specific districts or roads.

Therefore, if you own an HMO with 3 or 4 occupants, check with your local authority whether you need to obtain an Additional HMO Licence.

In order to find out your local council requirements for HMO licensing, it’s best to check with your local council website.

HMO Licence Requirements for 1-4 Occupants

In some areas, regardless of whether your property is legally an HMO, you may not need an HMO Licence but might need to apply for a Selective Licence.

This type of licence applies to all privately rented housing within certain areas determined by your local authority, regardless of whether the property is an HMO.

For all legal HMOs, you are also required to comply fully with the Management of Houses in Multiple Occupation Regulations (2006) under the Housing Act (2004).

Which HMOs are Exempt from HMO Licensing?

There are a few HMOs that will be exempt from obtaining an HMO licence, including renting from:

• The local council
• The health service
• A housing association
• A cooperative
• The police or local fire authority
• Halls of residence managed by an educational establishment

Purpose Built Flats

In addition to the above establishments, there is also an exemption for purpose built flats comprising three or more self contained flats. The government has ruled that purpose built flats that fall under this category are exempt from obtaining a Mandatory HMO Licence.

However, depending on your local council, you may still need to obtain an Additional or Selective HMO Licence.

Converted Flats & Section 257 HMOs

Some HMO properties can fall under what is known as Section 257 HMOs. These buildings are HMOs that have been converted into self-contained flats, but the conversion did not comply with the 1991 Build Regulations that were in force at the time, and still do not comply. In addition, less than ⅔ of the flats are owner-occupied.

These HMOs are not subject to Mandatory HMO Licences. Though, increasingly, many local councils are requiring these HMOs to be licensed under their Additional Licensing Schemes.

This can be a complex area of property HMO licensing legislation, so please get in contact for more information on Section 257 HMOs.

HMO Licensing Flow Chart

The following flowchart from the National Landlords Association is helpful in determining if you need an HMO licence:

HMO Licence Requirements

There are certain conditions and requirements you must meet in order to obtain an HMO licence. This can vary depending on the local council and which licence it is you need to obtain.

Mandatory or Large HMO Licence Requirements Checklist

Room Sizes Requirements

For HMO licences granted after October 2018, there are requirements regarding the minimum size a bedroom can be. This is one of the most considerable changes to Large HMO licensing in recent years and is an important consideration for HMO investors.

These requirements are:

• 4.64m² for a 1 person bedroom under 10 years old
• 6.51m² for a 1 person bedroom over 10 years old
• 10.22m² for a 2 person bedroom over 10 years old

In some areas, licence officers can be very strict on room size requirements, and this can be a big factor that influences licences being approved. They can also be higher depending on the local council or whether there is a separate living space in the property. Therefore, this should be an important consideration when it comes to HMO investment.

Other Requirements

All mandatory HMO licences must also have the following conditions attached:

• A gas safety certificate – mandatory if the HMO has a gas supply. This must be presented every year
• Working smoke alarms in every occupied storey of the property. These must be installed and maintained and a declaration of safety can be requested on demand
• Appliances and furniture must be in safe and working order. Safety certificates for electrical appliances can be requested
• A written statement of the terms of occupancy must be provided to each occupant
• If a fixed combustion appliance is installed, other than a gas cooker, a carbon monoxide alarm is also required
• Enough washing, cooking and toilet facilities.

When operating a Large HMO, it’s important to understand that as occupant numbers scale up, more or larger facilities are required. For example, at 7 occupants, some councils require at least 2 shared bathrooms and kitchens of at least 9.5m2, compared to 1 bathroom and 7m2 kitchens for 5 occupants.

It is best to check with your local authority, or speak with an HMO expert when understanding the requirements that are required for your property.

Discretionary HMO Licence Requirements

Some local authorities can also add discretionary conditions to the HMO licence requirements, and you will need to check with your local authority on these requirements. This can include:

• Repair works that may need to be carried out to qualify
• Equipment and facilities in the property meet the standards laid out in Section 65 of the Housing Act 2004 relating to the suitability of the house
• Certain actions must be carried out to prevent antisocial behaviour from the occupants of the HMO
• Sometimes, the licence holder may be required to attend a training course

How Long is an HMO Licence Valid For?

An HMO licence is valid for 5 years, but shorter licences can be issued by some local authorities, particularly if there are any issues with the application process. For example, if repairs work on the property is required.

HMO Licence Costs Explained

According to HMO Hub, HMO licence costs can vary depending on the local council area, however the general range is between £300 to £1,500.

Some local authorities have variable licensing costs, which means that the amount you’ll pay can depend on factors decided by the council.

For example, Southampton City Council split their HMO licence fees into 2 stages – one fee payable on application and another on award of the licence. In addition, different fees apply depending on the type of landlord application as well as the timeliness of submitting the application. This means that for this local authority, HMO licence costs can vary between £319 – £1,211.

Furthermore, some local authorities charge fees depending on the number of rooms in the HMO property. Croydon London City Council charges a fee of £250 per each habitable room, up to a maximum cost of £5,000. They also operate a staged approach to the application process, requiring an application fee and an award fee.