HMO licensing explained: rules for landlords

HMO rules matter because whether a property counts as a house in multiple occupation affects licensing, room standards and the risk of penalties. The key tests are how many people live in the property, whether they form more than one household, and whether they share basic facilities.

What counts as an HMO

A property is an HMO if at least 3 tenants live there, form more than one household, and share a toilet, bathroom or kitchen. The statutory test in the Housing Act 2004 also covers accommodation that is not a self-contained flat, occupied by people who do not form a single household, where two or more households share basic amenities such as a toilet, washing facilities or cooking facilities. In this context, a household means one person living alone or members of the same family living together.

When you need a licence

Every HMO covered by Part 2 of the Housing Act 2004 must be licensed unless a temporary exemption notice or a management order is in force. Mandatory licensing applies to a large HMO rented to 5 or more people forming more than one household, with shared toilet, bathroom or kitchen facilities, and at least one tenant paying rent. The facts also say that since 1 October 2018 in England, mandatory licensing has covered smaller properties housing 5 or more people in 2 or more separate households, removing the previous 3-storey requirement.

Room sizes and standards

For licences granted or renewed from 1 October 2018, the national minimum room sizes listed here are 6.51 square metres for one person aged over 10, 10.22 square metres for two people aged over 10, and 4.64 square metres for one person under 10. Rooms smaller than 4.64 square metres cannot be used as sleeping accommodation. The facts also say the council must carry out a Housing Health and Safety Rating System risk assessment on an HMO within 5 years of receiving a licence application, and any unacceptable risks must be eliminated.

Fees and renewal

HMO licence fees are set by each council, so there is no national fee in the facts provided. A licence is valid for a maximum of 5 years, and a landlord needs a separate licence for each HMO they run.

What happens without a licence

Renting out an unlicensed HMO can lead to an unlimited fine. Licence conditions include having a fit and proper manager, an annual gas safety certificate, smoke alarms, and electrical safety certificates on request. Separately, the Renters Rights Act 2025 adds a power to set additional standards for HMOs in England, but no verified source confirms this changes the current licensing test.

Key facts

Source: GOV.UK - Houses in multiple occupation (HMO) — Guidance checked August 2026

Source: legislation.gov.uk - Housing Act 2004 s.254 — Guidance checked August 2026

Source: legislation.gov.uk - Housing Act 2004 s.61 — Guidance checked August 2026

Source: GOV.UK - House in multiple occupation licence — Guidance checked August 2026