HMO licence: when you need one and how it works (England)
Whether a house needs an HMO licence depends on two things: how many people live there, and which council it’s in. The national rule is simple; the local schemes on top of it are where landlords get caught out.
Luke AshtonFounder of Bricky Bot and Based Lettings · Updated The short answer (England, as of October 2026)
- An HMO is a home let to 3 or more people from 2 or more households who share a kitchen, bathroom or toilet.
- Mandatory licence: every HMO with 5 or more people from 2 or more households needs one, whatever the number of storeys.
- Smaller HMOs (3–4 people) need one if the council runs an additional licensing scheme there. Some councils also license ordinary single-household lets (selective licensing).
- Cost: set by each council, no national fee. A licence lasts up to 5 years.
- No licence when you need one: a criminal offence, a civil penalty of up to £40,000 and rent repayment orders of up to two years’ rent.
Wales and Scotland have their own HMO rules; this guide covers England only.
What counts as an HMO
A house in multiple occupation is defined in section 254 of the Housing Act 2004. The everyday version is the “standard test”: the building is let to people who don’t form a single household, it’s their only or main home, at least one of them pays rent, and two or more households share one or more basic amenities (a toilet, washing facilities or cooking facilities).
(b) the living accommodation is occupied by persons who do not form a single household; … (f) two or more of the households who occupy the living accommodation share one or more basic amenities or the living accommodation is lacking in one or more basic amenities.
Housing Act 2004, s.254(2), extract
A “household” is a family: a couple and their relatives count as one, so a couple sharing with one friend is 3 people from 2 households, which is an HMO. GOV.UK puts it simply: a property rented out by at least 3 people who are not from 1 household, sharing facilities like the bathroom and kitchen. Students living away from home count as living there as their main residence.
Section 257 HMOs (converted blocks of flats)
A building converted into self-contained flats can also be an HMO under section 257, if the conversion didn’t meet the appropriate building standards (and still doesn’t), and less than two-thirds of the flats are owner-occupied. These aren’t covered by mandatory licensing, but a council’s additional licensing scheme can include them, and the HMO management rules apply.
The three kinds of licensing
| Scheme | What it covers |
|---|---|
| Mandatory HMO licensing | Every HMO with 5+ people in 2+ households, across England. Set by the 2018 Order (below). |
| Additional HMO licensing (s.56) | Smaller HMOs (often 3–4 people, sometimes s.257 flats) in an area the council designates. |
| Selective licensing (s.80) | Privately rented homes that aren’t HMOs, in a designated area: even a single family let. |
Mandatory licensing applies to an HMO described in article 4 of the Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018:
An HMO is of a prescribed description … if it— (a) is occupied by five or more persons; (b) is occupied by persons living in two or more separate households; and (c) meets— (i) the standard test … (ii) the self-contained flat test … but is not a purpose-built flat situated in a block comprising three or more self-contained flats; or (iii) the converted building test.
Licensing of HMOs (Prescribed Description) (England) Order 2018, art. 4
Since that Order (in force from 1 October 2018) there’s no storey test: a two-storey house with 5 sharers needs a licence just like a three-storey one.
Do I need a licence?
| Who lives there | Licence? |
|---|---|
| A family, or a couple, on their own | Not an HMO. Only if the council has a selective licensing scheme for the area. |
| 2 unrelated sharers | Not an HMO (fewer than 3 people). Selective licensing may still apply. |
| 3 or 4 sharers from 2+ households | An HMO. Licence needed only if the council runs additional licensing there. |
| 5 or more sharers from 2+ households | Mandatory licence, anywhere in England. |
| A couple plus 3 friends (5 people, 4 households) | Mandatory licence. |
| A flat with 5 sharers in a purpose-built block of 3+ flats | Not mandatory. Additional licensing may apply. |
| Converted block of flats that fails building standards, under two-thirds owner-occupied | A s.257 HMO. Licence only under an additional scheme that includes them. |
| A live-in landlord with 1 or 2 lodgers | Not an HMO: a building occupied by the owner’s household and no more than two other people is excluded (Schedule 14, para 6; the number is set at two by regulations). |
Some buildings are excluded from the HMO definition altogether by Schedule 14 to the Act (for example certain buildings managed by universities and colleges). If your case is unusual, ask the council’s private housing team before you let.
How to check whether a property needs, or has, a licence
- Find the council. GOV.UK’s HMO licence page takes a postcode and sends you to the right council.
- Check its schemes. The council’s website lists any additional or selective licensing designations, the streets or wards they cover and when they end. Schemes usually run for up to five years and get renewed, extended or dropped, so check the dates.
- Search the public register. Every council must keep a public register of licences under section 232 of the Housing Act 2004. Most publish it online; otherwise ask.
- Or run the address through a report. Bricksmart, our sister product, has a free HMO report that checks mandatory, additional and selective licensing and Article 4 for a specific address, alongside room layout and local rents.
What a licence costs
There’s no national fee. Each council sets its own, and GOV.UK simply says the council sets the fee. In practice fees vary widely from one council to the next, and many charge in two parts: one when you apply and one when the licence is granted. Some offer discounts for accredited landlords or early applications. Check the council’s current fee schedule before you budget. Budget for council tax too: in an HMO the owner pays it, and our council tax checker works out the bill for any council and band.
Licence conditions, including room sizes
Every licence comes with conditions. Some are set by the council; others are mandatory under Schedule 4 to the Housing Act 2004. Since 1 October 2018 (the Mandatory Conditions of Licences Regulations 2018) these include minimum bedroom sizes:
| Room used for sleeping by | Minimum floor area |
|---|---|
| One person aged over 10 | 6.51 m² |
| Two people aged over 10 | 10.22 m² |
| One child aged under 10 | 4.64 m² |
| Anyone | No room under 4.64 m² may be used for sleeping |
Floor area under 1.5 m of ceiling height doesn’t count towards these minimums. The licence also states the maximum number of people for each room, and you must comply with the council’s waste storage and disposal scheme. Other usual conditions: an annual gas safety record, working smoke alarms (and carbon monoxide alarms where required), safe electrical appliances and installation, furniture safety, and a written statement of terms for each occupier. Many councils add their own amenity standards (kitchens and bathrooms per person) on top. Before the council visits, our free HMO inspection checklist checks each bedroom against these sizes.
The licence holder and manager must also be a “fit and proper person”, and the HMO management regulations apply to every HMO, licensed or not. If the council refuses or revokes a licence, or the house holds more people than its licence allows, Ground 6B lets you seek possession on four months’ notice: our section 8 notice template fills in the Form 3A.
Penalties for getting it wrong
- Criminal offence. Controlling or managing an HMO that should be licensed but isn’t is an offence under section 72 of the Housing Act 2004. GOV.UK says you could get an unlimited fine.
- Civil penalties. Instead of prosecuting, the council can impose a financial penalty under section 249A. The maximum rose from £30,000 to £40,000 for offences on or after 1 May 2026, alongside the Renters’ Rights Act changes (GOV.UK guidance).
- Rent repayment orders. Tenants (or the council, where it paid housing benefit or universal credit housing costs) can ask the First-tier Tribunal to order repayment of rent for the period of the offence, up to two years (Housing and Planning Act 2016, s.40 and s.44, as amended by the Renters’ Rights Act 2025 from 1 May 2026; previously 12 months).
Grey areas worth flagging
- Which date counts for the higher penalties. The £40,000 maximum and the two-year rent repayment period apply to offences from 1 May 2026. Unlicensed letting is a continuing offence, so a period that started earlier and ran past that date can be argued either way. Councils’ own penalty policies say how they treat it.
- “Household” edge cases. Lodgers, au pairs, carers and cousins all have specific rules. If the number of households decides whether you need a licence, get the council’s view in writing.
- Applied but not yet granted. Section 72(4) gives a defence while an application “had been duly made” and was still effective. What counts as duly made (complete form, fee paid) is for the council and, in the end, a court. Keep the application receipt.
Running licensed HMOs day to day
Getting the licence is the easy part; keeping to it for five years is the work. Diary the licence expiry and the certificates its conditions rely on (gas, electrical, fire alarm and emergency lighting where required), keep occupancy at or under the permitted numbers per room, and keep a record of repairs and when you dealt with them. Councils inspect against the conditions, not the application.
Keeping on top of licence conditions, certificates and repairs across several houses is what HMO management software is for. The licence expiry and the certificates behind it sit on one grid in our landlord compliance reporting app.
Questions landlords ask
Do I need an HMO licence for 3 tenants?
Not under mandatory licensing, which starts at 5 people. But a house let to 3 or 4 people from 2 or more households is still an HMO, and many councils require a licence for it through an additional licensing scheme. Check the council’s website for the street.
How much does an HMO licence cost?
Each council sets its own fee, so there is no national price. Fees vary widely between councils and often come in two parts (an application fee and a later fee once the licence is granted). The council’s website lists its current fees.
How long does an HMO licence last?
Up to five years. Councils can grant shorter licences, and you have to apply again before it runs out. A licence is for one property and one licence holder, and it doesn’t transfer when the property is sold.
How do I check if a house has an HMO licence?
Every council must keep a public register of the HMO licences it has granted (Housing Act 2004, section 232). Search the council’s online register or ask its private housing team. A tool such as Bricksmart’s HMO report checks the licensing schemes that cover an address.
What happens if I let an HMO without a licence?
It’s a criminal offence. The council can prosecute (the fine is unlimited) or impose a civil penalty of up to £40,000 for offences from 1 May 2026, and tenants or the council can apply for a rent repayment order of up to two years’ rent.
Keep every HMO on the right side of its licence
Bricky is an AI lettings team for HMO landlords and letting agents. It opens each certificate renewal inside its lead time, files new certificates and logs repairs straight from the house chat, with nothing sent until you approve it.
Book a demoSources
- Housing Act 2004, section 254 and section 257 (legislation.gov.uk)
- Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 (legislation.gov.uk)
- Housing Act 2004, Schedule 4, as amended by the Licensing of HMOs (Mandatory Conditions of Licences) (England) Regulations 2018
- Housing Act 2004, s.56 (additional licensing), s.80 (selective licensing), s.232 (registers), s.249A (civil penalties)
- Housing and Planning Act 2016, s.40 and s.44 (rent repayment orders)
- House in multiple occupation licence (GOV.UK)
- Civil penalties under the Renters’ Rights Act 2025 and other housing legislation (GOV.UK)
This guide explains the law in England as it stands on 1 October 2026. It isn’t legal advice; for a specific property, speak to the council, a solicitor or your landlord association.