A House in Multiple Occupation (HMO) is a property occupied by three or more people who form more than one household and share facilities such as a kitchen or bathroom. Common examples include shared student houses, professional house shares, and bedsit properties.
Key definition: A household is a single person or members of the same family living together. Three unrelated professionals sharing a house = three households = an HMO. A family of five = one household = not an HMO.
Mandatory HMO licensing applies to all properties in England that are:
There is no minimum number of storeys for mandatory licensing β a large bungalow with 5 or more unrelated occupants requires a licence. The 2018 regulations removed the old 3-storey minimum.
| Condition | Mandatory licence required? |
|---|---|
| 5+ persons, 2+ households, shared facilities | Yes β always |
| 4 persons, 2 households, 3+ storeys | Check local additional licensing |
| 3 persons, 2 households, any storeys | Check local additional licensing |
| Single family of 5+ | No β one household |
Local councils can designate additional licensing schemes covering smaller HMOs not caught by mandatory licensing, and selective licensing schemes covering all privately rented properties in a defined area regardless of whether they are HMOs.
Before starting any new tenancy, always check your local council website for:
Common error: Many landlords assume that because they don't have 5 occupants they don't need a licence. In many councils, even a 3-person shared house requires a licence under an additional licensing scheme. Always check with your local authority.
Apply directly to your local council. Requirements vary but typically include:
HMO licences are typically granted for 5 years. Conditions attached to the licence specify minimum room sizes, maximum occupancy, and required safety measures.
| Offence | Maximum penalty |
|---|---|
| Operating an HMO without a licence | Unlimited fine (magistrates court) |
| Civil penalty notice | Up to Β£40,000 per offence (from 1 May 2026) |
| Rent Repayment Order | Up to 24 months rent repaid to tenant (from 1 May 2026) |
| Banning Order | Banned from being a landlord |
Rent Repayment Orders: Tenants in an unlicensed HMO can apply to the First-tier Tribunal for an order requiring the landlord to repay up to 24 months of rent (increased from 12 months by the Renters' Rights Act 2025 from 1 May 2026). This right also applies to local councils. It is one of the most financially damaging consequences of non-compliance.
HMO landlords need all the same documents as standard landlords, plus HMO-specific records such as licence conditions, fire safety checks and room-by-room occupancy details.
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