HMO licensing — When you need a licence and how to apply

If your England rental property is occupied by 5 or more people from 2 or more households, you need a mandatory HMO licence from your local authority before letting. Smaller HMOs may also require a licence under an additional licensing scheme. Operating an unlicensed HMO is a criminal offence. Reviewed March 2026.

What the rule is

The Housing Act 2004 (as amended by the Housing and Planning Act 2016) requires all landlords of HMOs with 5 or more people from 2 or more households to hold a mandatory HMO licence. The 2016 amendment removed the former 3-storey requirement, so even single-storey properties require a mandatory licence if the occupancy threshold is met.

Local authorities can also designate additional HMO licensing schemes covering smaller HMOs in their area. Some councils have designated additional licensing for all HMOs, including those with 3+ occupiers.

When it applies

Mandatory HMO licence required:

• 5 or more people from 2 or more households
• Any type of property (house, flat, bungalow — the 3-storey rule no longer applies)

Additional licensing may apply:

• Where the local authority has designated an additional licensing scheme
• Check your local council’s website for any schemes in your area

What landlords must do

• Check whether a licence is required (mandatory or additional)
• Submit an application to your local authority before letting
• Pay the licence fee (varies by council, typically £500–£1,500 for 5 years)
• Meet the fitness standards — the council will assess fire safety, room sizes, facilities, and whether you are a fit and proper person
• Comply with all licence conditions once granted
• Renew before the licence expires (typically every 5 years)
• Update the council if there are significant changes (number of occupiers, management arrangements)

What councils assess

• Fire safety — fire doors, detection and alarm system, escape routes
• Room sizes — minimum floor areas (e.g. 6.51m² for one person aged 10+, 10.22m² for two people)
• Facilities — adequate kitchen, bathroom, and toilet facilities for the number of occupants
• Fit and proper person — the licence holder must not have convictions for housing offences, fraud, or certain other offences
• Management arrangements — who manages the property and whether they are competent

What evidence to keep

• HMO licence (certificate) — keep on file and display a copy in the property if required by the licence
• Compliance records for licence conditions
• Fire safety inspection records and maintenance logs
• Evidence of room sizes if the council asks for it
• Any correspondence with the local authority about the licence

Common mistakes

• Assuming mandatory licensing no longer applies to single-storey HMOs — the 3-storey requirement was removed in 2018; the threshold is now purely occupancy-based
• Letting without a licence while the application is pending — some councils issue temporary licences; confirm this with your council before letting
• Not checking additional licensing — even if you’re below the mandatory threshold, an additional licensing scheme in your area may apply
• Ignoring licence conditions — breach of licence conditions is a criminal offence

FAQ

What is the penalty for operating an unlicensed HMO? Operating without a licence is a criminal offence with an unlimited fine. The local authority can also apply for a Rent Repayment Order requiring you to repay up to 12 months’ rent. You may also be placed on the Rogue Landlord Database.

Can I apply for an HMO licence myself or does it need to go through an agent? You can apply directly. The licence is issued to a natural person (the landlord or a manager). If managed by an agent, the agent may be the licence holder.

How long does the application process take? Typically 6–12 weeks, though this varies significantly by local authority. Apply well in advance of letting.

What if my HMO licence is refused? You can appeal to the First-tier Tribunal (Property Chamber). Seek legal advice if a refusal seems unreasonable.