HMO licence for landlords in England: mandatory, additional and selective licensing

The rules in brief

• A large HMO in England needs a mandatory licence under Part 2 of the Housing Act 2004 when it is let to five or more people who form two or more households and share a kitchen, bathroom or toilet.
• Smaller HMOs, often three or four unrelated sharers, may need an additional HMO licence if your council has designated the area.
• Selective licensing covers every privately rented home in a designated area, whether or not it is an HMO.
• A licence usually lasts up to five years. You need a separate licence for each HMO you run, and you must renew before it expires.
• Letting a property that needs a licence without one is a criminal offence: unlimited fine, civil penalty, or a rent repayment order of up to two years' rent.

What counts as an HMO

A house in multiple occupation (HMO) is a rented home occupied by people who are not all from one household and who share basic amenities such as a kitchen, bathroom or toilet. GOV.UK treats three or more people from more than one household sharing facilities as an HMO. Student houses, bedsits and some converted flats often fall into this category.

A household is a family group living together, including couples. Five unrelated friends are five households. A couple plus three unrelated sharers are four households. Only count people who live there as their main home, not short-stay visitors.

Mandatory licensing does not kick in just because a property is an HMO. The national rule uses the higher threshold of five or more occupants and two or more households. Below that, you may still need an additional or selective licence from your council.

Mandatory HMO licensing

You must have a mandatory HMO licence if all of these apply:

• the property is in England;
• it is rented to five or more people;
• those people form two or more households;
• they share a toilet, bathroom or kitchen;
• at least one tenant pays rent (or their employer pays it for them).

This is sometimes called licensing a large HMO. The storey count that used to limit mandatory licensing to three-or-more-storey houses was removed in 2018, so a single-storey flat or bungalow can still need a mandatory licence if the occupancy threshold is met.

The council must be satisfied the house is suitable for the number of occupants and that the proposed licence holder and manager are fit and proper people. Criminal convictions, previous housing offences and breaches of landlord law can lead to a refusal.

Additional and selective licensing

Additional HMO licensing is optional for councils. Where a scheme is in force, smaller HMOs that fall below the mandatory threshold still need a Part 2 licence. Typical designations catch three or four unrelated sharers, or every HMO in a ward or borough.

Selective licensing sits under Part 3 of the Housing Act 2004. It covers all privately rented homes in a designated area, including single-family lets. If your property is already a licensed HMO, you do not also need a selective licence for the same property while the HMO licence is in force.

Schemes are time-limited, usually for five years, and must be consulted on before they start. Check your council's website for maps, fees and start dates rather than assuming a neighbouring borough's rules apply.

Planning is separate from licensing. Some councils have an Article 4 direction that removes permitted development rights for changing a family home (Use Class C3) into a small HMO (Use Class C4). You may need planning permission even when no additional licence is required. LetRecord's public check flags HMO Article 4 directions near the postcode when planning data lists them. See also our landlord compliance checklist.

Licence conditions and bedroom sizes

Every Part 2 HMO licence in England must include mandatory conditions. You have to:

• produce an up-to-date gas safety record each year if there is gas;
• keep smoke alarms in working order and provide electrical appliance safety certificates when the council asks;
• comply with the council's household waste storage and disposal requirements;
• meet the national minimum sleeping-room sizes, and not let anyone sleep in a room smaller than 4.64 m².

Measure wall to wall. Ignore any part of the floor where the ceiling is lower than 1.5 m. Communal space elsewhere in the house does not make up for a bedroom that is too small. Councils can set higher room-size or amenity standards in the licence, but not lower ones. The licence will also cap how many people may sleep in each room.

Many councils add fire precautions, portable appliance testing, anti-social behaviour conditions and a named manager's contact details. Read the draft conditions before you accept the licence.

Rules every HMO must follow

The Management of Houses in Multiple Occupation (England) Regulations 2006 apply to every HMO, licensed or not. The manager must keep shared areas safe and clean, maintain water, gas and electricity supplies, take fire safety precautions, and make sure refuse is stored properly.

HMOs also need a fire risk assessment under the Fire Safety Order. Upload it with your other evidence: councils and insurers often ask for it alongside the HMO licence, gas record and EICR.

• Gas safety certificates for landlords in England
• EICR for landlords: the five-year electrical safety check
• Smoke and carbon monoxide alarm rules for landlords

How to apply for an HMO licence

Apply to the local housing authority for the property, usually through the council's website. Fees vary widely by borough and by the number of bedrooms or occupants. Typical packs ask for:

• floor plans showing room sizes and shared facilities;
• gas safety record, EICR and, where required, a fire risk assessment;
• proof of ownership or authority to let;
• fit and proper person declarations for the licence holder and any manager;
• the proposed occupancy and how waste will be stored.

A licence lasts for a maximum of five years. Renew before it runs out; operating after expiry is treated like operating without a licence. Tell the council if the manager changes, room layouts change, or you want to increase the number of occupants.

Once you have submitted a valid application and paid the fee, you are protected from the offence of operating an unlicensed HMO while the council decides the application. Keep proof of submission and payment.

Penalties for letting without a licence

Operating a property that requires a licence without one, or breaching licence conditions, can lead to:

• prosecution in the magistrates' court, with an unlimited fine;
• a civil penalty of up to £30,000 per offence as an alternative to prosecution;
• a rent repayment order: tenants or the council can reclaim rent paid while the property was unlicensed;
• restrictions on serving some possession notices while the licensing offence continues.

Since 1 May 2026 rent repayment orders under the Renters' Rights Act can cover up to two years' rent, up from one year. The tribunal looks at the seriousness of the offence and your conduct when deciding how much to order.

PRS database and HMO licences from 2026

From 15 December 2026, every landlord in England must register themselves and each rental property on the private rented sector database, region by region. Licensed HMOs still need that registration. Add the licence details to the property entry when your region's window opens. Our PRS database registration guide lists the opening dates.

Licensing and database registration are separate duties. A valid HMO licence does not replace PRS registration, and registering on the database does not replace an HMO, additional or selective licence.

How LetRecord helps

Enter the number of occupants and households when you add a tenancy. LetRecord adds the mandatory HMO licence duty when the national threshold is met, keeps additional and selective licensing rows from reviewed council records, and tracks each licence's expiry once you upload it. The same property file holds the gas record, EICR, fire risk assessment and PRS registration evidence a council may ask to see.

Common questions

Official sources

• House in multiple occupation licence
• GOV.UK: houses in multiple occupation and residential property licensing reform guidance
• The Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018
• Management of Houses in Multiple Occupation (England) Regulations 2006
• GOV.UK: Renters' Rights Act overview for landlords

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