An HMO (House in Multiple Occupation) is a property rented out by at least 3 people who are not from one household (e.g. a family) but share facilities such as a bathroom or kitchen. A household is a single person, a couple, or family members. Common HMO types include: student houses (4-6 students each with their own bedroom, sharing kitchen and bathrooms), professional house shares (working adults sharing a house), bedsits (self-contained rooms in a converted house), and converted flats with shared amenities. HMOs are regulated more strictly than standard rental properties due to higher fire risk and the more complex management of multiple unrelated tenants.

How much does an HMO licence cost in 2025?

HMO licence fees are set by individual local councils and vary widely. In 2025, typical fees range from £500 to £1,500 for a 5-year licence, equivalent to £100-£300 per year. Some London boroughs charge up to £2,000-£3,000+ for initial applications. Many councils offer a discounted fee for accredited landlords or members of landlord associations. Fees are non-refundable even if the licence is refused. Application fees often include a non-refundable processing component (paid upfront) and a completion component (paid on grant). Always check the current fee schedule with your local housing authority before applying.

What room size standards apply to HMOs?

The Licensing of Houses in Multiple Occupation (Mandatory Conditions) (England) Regulations 2018 set national minimum room size standards: single occupancy sleeping rooms must be at least 6.51 square metres. Rooms shared by two adults must be at least 10.22 square metres. Rooms used by children aged 10 or under must be at least 4.64 square metres. Rooms below these sizes cannot lawfully be used as sleeping accommodation. Local councils may set additional or higher standards. Failure to comply with room size standards can result in the council issuing a licence with reduced occupancy, or refusing to grant a licence entirely.

What fire safety measures are required in an HMO?

Fire safety is the most critical compliance area for HMOs. Required measures typically include: interlinked mains-wired smoke alarms on every floor, heat detector in the kitchen, fire doors (FD30 rated) on each habitable room leading to an escape route, thumb-turn locks on front and back doors, emergency lighting in some cases, fire safety risk assessment (usually by a qualified assessor), documented fire safety and evacuation plan, fire extinguisher and fire blanket in kitchen areas, and clear signage. Specific requirements vary by property type, number of storeys, and local council requirements. A fire safety assessment from a qualified professional is strongly recommended before applying for an HMO licence.

What is an Article 4 Direction and how does it affect HMO conversions?

An Article 4 Direction is a local planning authority measure that removes permitted development rights in a specific area. In many university cities and towns (including Oxford, Cambridge, Leeds, Nottingham, and many London boroughs), Article 4 Directions have been applied to remove the automatic right to convert a standard dwelling (Use Class C3) to an HMO (Use Class C4, for 3-6 occupants). In these areas, planning permission is required before converting a property to an HMO, which is not guaranteed and may be refused. Large HMOs (7+ occupants, Sui Generis use class) have always required planning permission. Always check whether an Article 4 Direction applies to the area where you intend to operate an HMO before purchasing.

HMO Licence Guide UK 2025

Q: Which HMOs require a mandatory licence?

Under the Housing Act 2004, mandatory HMO licensing applies to any property occupied by 5 or more people from 2 or more separate households who share facilities. This rule was extended in October 2018 to remove the previous requirement for the property to be 3 or more storeys. Now, a single-storey bungalow or ground-floor flat with 5 or more unrelated tenants sharing facilities requires a mandatory HMO licence. Additional licensing schemes operate in many local authority areas and can extend licensing requirements to smaller HMOs (3 or 4 tenants). Always check with your local council as additional licensing areas vary significantly across England and Wales.

Q: What are the penalties for operating an unlicensed HMO?

The penalties for operating an unlicensed HMO that requires a licence are severe. Local councils can issue a Financial Penalty of up to £30,000 per breach (introduced under the Housing and Planning Act 2016 as an alternative to prosecution). Alternatively, councils can prosecute under the Housing Act 2004, where conviction can result in an unlimited fine. Councils can also issue a Rent Repayment Order (RRO) requiring landlords to repay up to 12 months of rent received. Tenants themselves can apply to the Tribunal for a Rent Repayment Order. Operating without a licence is a serious matter and all HMO landlords must check their local council's licensing requirements before letting to multiple occupants.

What Is an HMO?

An HMO (House in Multiple Occupation) is defined under Section 254 of the Housing Act 2004 as a property that is occupied by 3 or more people who form 2 or more separate households and who share (or lack) basic amenities such as a bathroom, toilet, or cooking facilities. The key elements are unrelated tenants (not a family living together) and shared facilities.

Common HMO arrangements include:

Student houses: Four to eight students renting individual rooms, sharing a kitchen, bathroom(s), and living areas
Professional house shares: Working adults in a house share, each paying for their own room
Bedsit properties: A converted house with multiple bedsit rooms, possibly sharing bathroom and kitchen
Converted blocks: Where common facilities are shared between flats

Key distinction: A family (parents, children, grandparents) plus lodgers may or may not constitute an HMO depending on numbers. A couple renting with one friend is 3 people from 2 households — an HMO by definition, but unlikely to require a licence unless local additional licensing applies.

HMO Licensing Tiers in England

There are three tiers of HMO licensing in England, operating at different levels:

1. Mandatory HMO Licensing (National)

Required for any property with 5 or more people from 2 or more households sharing facilities, regardless of the number of storeys. This was extended from the original 3-storey rule in October 2018. A bungalow with 5 unrelated tenants sharing a kitchen now requires a mandatory HMO licence.

2. Additional Licensing (Local Council Discretion)

Local councils can designate areas or property types where smaller HMOs (typically 3-4 occupants) also require a licence. These designations vary enormously across the country. Many university cities, London boroughs, and densely rented areas have extensive additional licensing schemes. Always check your local council website before letting to 3 or more unrelated people.

3. Selective Licensing (Local Council Discretion)

In some designated areas, all rental properties (not just HMOs) require a licence. This applies to entire areas, typically where there are problems with anti-social behaviour, low demand, or poor property management. Selective licensing fees are typically lower (£100-£500) but apply to all rental properties in the designated zone.

Licensing Type	Applies To	Trigger	Set By
Mandatory HMO	5+ tenants, 2+ households, shared facilities	National law	National government
Additional HMO	3-4 tenants, 2+ households, shared facilities	Local designation	Local council
Selective	All rental properties in designated zone	Local designation	Local council

HMO Licence Costs 2025

HMO licence fees are set by individual local councils and vary widely. There is no national standard fee. Key facts about HMO licensing costs in 2025:

Location	Typical Licence Fee	Licence Duration	Annual Cost
London Boroughs (avg)	£1,000–£3,000+	5 years	£200–£600/yr
Major English Cities	£700–£1,500	5 years	£140–£300/yr
Smaller Towns	£500–£900	5 years	£100–£180/yr
Discounted (Accredited Landlord)	£300–£800	5 years	£60–£160/yr
Scotland (different system)	£50–£500	3 years	£17–£167/yr

Save money on your HMO licence: Many councils offer 10-30% discounts to landlords who are accredited by a recognised scheme (NRLA, DASH, local authority accreditation). Joining an accreditation scheme typically costs £50-£200/year but can save significantly on licence fees.

HMO Licence Application Process

Obtaining an HMO licence requires preparing a significant amount of documentation and ensuring the property meets standards before applying. Here is the step-by-step process:

Check requirements: Confirm your local council's HMO licensing requirements and whether mandatory, additional, or selective licensing applies to your property address.

Fire safety assessment: Commission a fire safety risk assessment (FRA) from a qualified assessor. This identifies required improvements and is usually needed before or alongside the licence application.

Install fire safety measures: Fit mains-wired interlinked smoke alarms on all floors, heat detector in kitchen, fire doors on all habitable rooms opening to escape routes, thumb-turn locks, and any other items from the FRA.

Gas safety certificate (CP12): Commission a Gas Safe registered engineer to inspect all gas appliances and issue a certificate. Required annually.

Electrical Installation Condition Report (EICR): Required for all rental properties every 5 years; must show satisfactory results.

Energy Performance Certificate (EPC): Must be band E or above for rental. Valid for 10 years. Councils may require a copy.

Floor plan: A scaled floor plan showing room dimensions is usually required so the council can check room sizes.

Management plan: Many councils require a written property management plan describing how you will manage the HMO, handle complaints, maintain facilities, and ensure tenant welfare.

Submit application and pay fee: Apply online or in person to your local council. Pay the application fee (often split into non-refundable and completion components).

Council inspection: An officer will inspect the property to verify compliance with licensing standards. Be prepared for a visit within 4-12 weeks of application.

Licence granted: On satisfactory inspection and paperwork, the licence is granted for up to 5 years. Start renewal process 3-6 months before expiry.

Room Size Standards for HMOs (England 2025)

The Housing Act 2004 (as amended by the 2018 Regulations) sets mandatory minimum room sizes for sleeping accommodation in licensed HMOs:

Occupancy	Minimum Floor Area	Notes
Single adult (16+)	6.51 m²	Below this, room cannot be used for sleeping
Two adults	10.22 m²	Shared sleeping room
Child (10 and under)	4.64 m²	Minimum for child's sleeping room
Child (under 1 year)	No minimum	Cot in any room

Important: these are the national minimum standards. Local councils may impose higher standards. Attic rooms, rooms with sloping ceilings, or irregularly shaped rooms may be assessed on their actual usable floor area, excluding areas where ceiling height is below 1.5 metres. Landlords must measure room sizes accurately before marketing HMO rooms and must comply with room size restrictions from the outset of any tenancy, not just on application.

HMO Amenity Standards: Kitchens and Bathrooms

Licensed HMOs must provide adequate kitchen and bathroom facilities for the number of occupants. While specific requirements vary by council, general guidance (based on the Licensing and Management of Houses in Multiple Occupation Regulations 2006) is:

Kitchen Facilities

1-4 people: 1 kitchen with oven/hob
5-8 people: Larger kitchen or second kitchen
9-15 people: Separate kitchen per group of 5
Adequate fridge/freezer space per occupant
Sufficient worktop space
Storage space for each tenant

Bathroom / WC Facilities

1-4 people: 1 bathroom with bath or shower and WC
5 people: 2 WCs and 1 bathroom minimum
6-10 people: 2 full bathrooms (or bathroom + shower room)
En-suite facilities count towards ratios
WC must have wash basin adjacent

Fire Safety Requirements for HMOs

Fire safety is the area most scrutinised by councils during HMO licence inspections. Requirements depend on the size and layout of the property but typically include all of the following for a medium-sized HMO (5-8 occupants):

Smoke alarms: Mains-powered, interlinked smoke detectors on every floor (not battery only)
Heat detectors: In kitchen and anywhere near cooking appliances
Fire doors: FD30 (30-minute fire door) on all habitable rooms opening onto the means of escape (hallways, staircases), plus on kitchen if open-plan layout is fire risk
Self-closing mechanisms: Fire doors must have automatic closers
Thumb-turn locks: Front and back doors must allow exit without a key from inside
Emergency lighting: Required on escape routes in larger HMOs (typically 8+ occupants or where natural light is insufficient at night)
Fire extinguisher: 2kg CO2 or 6-litre foam extinguisher in hallway near kitchen; fire blanket in kitchen
Fire safety risk assessment: Written FRA by competent assessor, reviewed annually
Fire safety notices: Clearly displayed evacuation plan in each bedroom
Regular testing: Smoke alarms tested and log kept; fire doors inspected regularly

Article 4 Directions: Planning Permission for HMO Conversion

In many areas of England, local planning authorities have introduced Article 4 Directions that remove permitted development rights for converting standard dwellings (Use Class C3) into small HMOs (Use Class C4, for 3-6 occupants). In these areas, planning permission is required before converting a property to an HMO — and it may be refused.

Areas with widespread Article 4 Directions in 2025 include: Oxford, Cambridge, Leeds, Nottingham, Exeter, Bristol, Brighton, Southampton, Portsmouth, and many London boroughs. Large HMOs (7+ occupants, Sui Generis use class) have always required planning permission regardless of Article 4.

Always check whether an Article 4 Direction applies before purchasing a property with the intention of converting it to an HMO. A change of use planning application for C3 to C4 may be refused, particularly in areas where the council has a policy of resisting further HMO concentrations. Penalties for operating an HMO without required planning permission include enforcement notices, fines, and a requirement to revert the property to residential use.

Penalties for Unlicensed HMOs

Operating an unlicensed HMO is a serious criminal and civil offence. Maximum penalties in 2025:

Civil Financial Penalty: Up to £30,000 per breach (per property)
Criminal prosecution: Unlimited fine on conviction at Magistrates' Court
Rent Repayment Order: Tenants can apply to First-tier Tribunal for up to 12 months' rent repaid
Banning Order: For serious or repeat offences, landlords can be banned from letting any property
Entry on Rogue Landlord Database: Publicly visible record of conviction
Cannot serve Section 21 notice: Landlords without a valid licence cannot serve a valid no-fault eviction notice

The consequences extend beyond the immediate fine. Being listed on the Rogue Landlord database is permanent and can affect future mortgage applications. Rent Repayment Orders mean tenants receive back rent they have already paid — sometimes years' worth — which can be financially ruinous. The message is clear: obtain a licence before letting, not after enforcement action begins.

Frequently Asked Questions

What is an HMO?

An HMO (House in Multiple Occupation) is a property rented by 3 or more people who are not from one household but share facilities such as a bathroom or kitchen. Common examples: student houses, professional house shares, and bedsit properties. A "household" is one person, a couple, or family members living together.

Which HMOs require a mandatory licence?

Mandatory HMO licensing applies to any property occupied by 5 or more people from 2 or more separate households who share facilities. Since October 2018, the 3-storey rule was removed — a bungalow with 5 unrelated tenants now requires a mandatory HMO licence. Additional licensing schemes can extend requirements to 3-4 person HMOs in designated areas.

How much does an HMO licence cost?

HMO licence fees are set by local councils. In 2025, typical costs range from £500-£1,500 for a 5-year licence (£100-£300/year). London boroughs often charge £1,000-£3,000+. Accredited landlords may qualify for discounts of 10-30%. Fees are non-refundable even if the application is refused.

What are the minimum room sizes in an HMO?

Under the 2018 regulations: single adult sleeping rooms must be at least 6.51 m², rooms for two adults at least 10.22 m², and children's rooms at least 4.64 m². Rooms below these sizes cannot legally be used as sleeping accommodation. Local councils may require larger minimum sizes.

What fire safety is required in an HMO?

Typical requirements include: mains-wired interlinked smoke detectors on all floors, heat detector in the kitchen, FD30 fire doors with closers on all rooms opening to escape routes, thumb-turn locks, fire extinguisher and blanket in kitchen, fire safety risk assessment, and documented evacuation plan in each bedroom. Larger HMOs may need emergency lighting. Specific requirements depend on the property and local council guidance.

What are the penalties for operating an unlicensed HMO?

Penalties include: civil financial penalty up to £30,000 per breach, unlimited fine on criminal prosecution, Rent Repayment Order (up to 12 months' rent returned to tenants), Banning Order preventing future letting activity, and registration on the national Rogue Landlord database. Unlicensed landlords also cannot serve a valid Section 21 no-fault eviction notice.

What is an Article 4 Direction and how does it affect HMOs?

An Article 4 Direction removes permitted development rights in a specific area. In many cities (Oxford, Leeds, Cambridge, many London boroughs), it removes the automatic right to convert a dwelling (C3) to an HMO (C4) without planning permission. Permission may be refused. Large HMOs (7+ occupants, Sui Generis) always require planning permission. Always check Article 4 status before purchasing a property for HMO conversion.

Sources & References

GOV.UK — Houses in Multiple Occupation: Landlord Responsibilities
Housing Act 2004, Part 2 — Licensing of HMOs
Licensing of Houses in Multiple Occupation (Mandatory Conditions) Regulations 2018
National Residential Landlords Association (NRLA) — HMO Guidance 2025

Disclaimer: This guide provides general information only. HMO licensing rules vary by local authority and are subject to change. Always check current requirements with your local council and consult a qualified property solicitor or housing adviser before proceeding.

Mustafa Bilgic

UK personal finance specialist and founder of UK Calculator. Mustafa writes on property investment, landlord regulations, and compliance for UK landlords. All content is checked against current legislation and GOV.UK guidance. Learn More about What Is an HMO?.

HMO Licence Guide UK

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