For landlords ยท 6 min read
HMO licensing: when you need one and what it costs
A property is an HMO where at least three tenants from more than one household share a kitchen, bathroom or toilet. Mandatory licensing applies where five or more people from two or more households occupy it. Beyond that, councils can impose additional licensing covering smaller HMOs and selective licensing covering all private rentals in a designated area, so the only reliable answer comes from your specific local authority. Operating an unlicensed licensable HMO risks an unlimited fine or a civil penalty and can trigger a rent repayment order of up to twelve months' rent.
Frequently asked questions
What is an HMO?
A house in multiple occupation: a property where at least three tenants live forming more than one household, and sharing a toilet, bathroom or kitchen. A household is one person or members of the same family.
When do I need an HMO licence?
Mandatory licensing applies where five or more people from two or more households occupy the property. Councils can also require licences for smaller HMOs through additional licensing, or for all private rentals in an area through selective licensing, so check with your specific local authority.
What happens if I let an unlicensed HMO?
You risk an unlimited fine on conviction or a civil penalty, and tenants or the council can apply for a rent repayment order of up to twelve months' rent.
How much does an HMO licence cost?
Fees are set by each local authority and vary widely, commonly running to several hundred pounds or more, with licences typically lasting up to five years. Your council's website will publish the current fee.