HMO licensing: when your rental needs a licence
A house in multiple occupation is a property where three or more people from two or more households share facilities such as a kitchen or bathroom. Cross that line and a distinct regulatory regime applies on top of ordinary tenancy law.
When a licence is mandatory
Mandatory HMO licensing applies where five or more people from two or more households share. Councils can add additional licensing covering smaller HMOs and selective licensing covering all rentals in designated areas, so the only safe assumption is to check your specific council's schemes for your specific address.
What licensing brings with it
- Minimum bedroom sizes and limits on the number of occupants.
- Enhanced fire safety: detection, escape routes, doors, and in larger properties emergency lighting.
- Management duties covering common parts, waste and repairs.
- A fit and proper person test for the licence holder.
The cost of getting it wrong
Operating an unlicensed licensable HMO carries unlimited fines or civil penalties up to £30,000, rent repayment orders returning up to 12 months of rent to tenants, and restrictions on possession claims while unlicensed. Joint tenancies in shared houses raise their own drafting questions: see our joint tenancy guide.
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Start my agreement →Frequently asked questions
Is a house shared by three friends an HMO?
Yes, three or more people from two or more households sharing facilities is an HMO. Whether it needs a licence depends on size and your council's schemes.
What happens if I rent out an HMO without a licence?
Unlimited fines or penalties up to £30,000, rent repayment orders of up to 12 months' rent, and difficulty obtaining possession while unlicensed.