Houses of Multiple Occupancy (HMO) under the Housing Act 2004 must be licenced. It is a criminal offence to operate an unlicenced HMO, so it is crucial that landlords are up to speed with the regulations on HMOs. Even experienced landlords face complex regulations that they must navigate, and many non-compliant landlords are caught out.
You could face an unlimited fine if caught and be given a criminal record.
This is a comprehensive guide on Houses in Multiple Occupation (HMO) licensing, including the HMO licence legal requirements, application processes, and compliance obligations.
Thanks to our experienced landlord and tenant solicitors, Lawhive is a reliable and affordable legal services provider for landlords and property managers seeking to navigate HMO licensing.
We’ve written this for:
Landlords and property owners
Prospective HMO landlords
Ensure you’re compliant with all the rules on HMOs by getting in touch with our team to seek legal assistance for all your HMO-related needs.
What is a HMO?
Houses of multiple occupancy refer to rented houses where a landlord rents to three or more people, of more than one household and toilet, bathroom and kitchen facilities are shared between tenants.
The rules vary in different councils, but you may require a licence if you rent a property to three or more tenants.
Many landlords are not fully aware of the rules, so it is important to educate yourself about your legal requirements. Councils carry out spot checks on properties to ensure landlords have the correct licences, so it isn’t something you can turn a blind eye to.
Landlords must also be aware of minimum sizes for bedrooms, and the need to comply with council refuse schemes.
Types of HMO licences
There are different types of HMO licences depending on property type and the number of people in occupation.
Mandatory licence
A mandatory licence applies to a household with five or more occupants, where the tenants comprise more than two households. Bathroom, kitchen and toilet facilities are also typically shared, and at least one tenant pays rent.
There is an exception for purpose-built flats in a block of three or more self-contained flats.
Selective licence
Selective licences are at the discretion of the council. They can affect properties regardless of their size, the number of occupants or the number of storeys. Councils can enforce selective licences on rental properties on an entire street, ward or entire borough.
Selective licences may be in place in areas of low housing demand.
Additional licences
Councils can put in place policies requiring different sizes of HMOs to be licenced. A council might decide to require all HMOs to be licenced.
Does my property need an HMO licence?
You will need to be aware of:
The mandatory requirements
Local authority requirements
Exemptions
We’ve already mentioned the mandatory requirements that require you to get a licence as a landlord with an HMO.
In terms of minimum bedroom sizes, they can differ between local authorities. Different local authorities have different requirements for HMOs.
Councils require you to send updated gas safety certificates to them every year, install and maintain smoke alarms and provide safety certificates for all electrical appliances when requested.
Your local council may also place conditions on your licence, these could include upgrading your facilities to a higher standard. Landlords can object to any conditions they don’t agree with at a First-Tier Tribunal.
How to get an HMO licence
To get an HMO licence you will need to meet the application requirements. You’ll need to gather documents that outline the following information:
Facilities – you need to outline the facilities available at the property. You should include the number, locations and sizes of bedrooms, bathrooms and kitchens
Structure – include information about the structure of the building, including how many stories it has
Safety – include information about safety equipment and certifications, e.g. gas safety certificates
Names and addresses – of people or organisations with any interest in the property, this could include freeholders, leaseholders, managing agents and mortgage lenders
Card – payment details
Date of birth – your date of birth if you are applying for yourself
Criminal background check – into your name which states you have no criminal convictions
Steps to apply
The first step to applying is contacting the local authority. They’ll verify whether you need a licence.
If your property isn’t up to the necessary standards, make sure you prepare for the application by getting the correct certifications.
You can then apply for an HMO licence by visiting your local council’s website to access and fill out the application form. As well as providing basic information about your property, you will need to gather documents that demonstrate your compliance with safety regulations.
When submitting the application, you’ll need to pay a licensing fee which varies depending on the size and location of your property.
To avoid delays, provide all requested documentation accurately. Your local council can give you detailed guidance on how to complete your application properly.
Assessment and inspection
The council will inspect your property after you submit your application to verify that all the information you have provided is accurate.
They use the Housing Health and Safety Rating System (HHSRS), under the Housing Act 2004. This is a risk-based evaluation tool which enables local authorities to identify and protect against potential risks and hazards to health and safety in landlord’s properties.
The HHSRS assesses 29 categories of housing hazard. Each hazard is weighted to help determine if a property is rated category 1 (serious) or category 2 (other).
It’s important to prepare for an inspection. Requirements differ between councils; however, they commonly include submitting:
Detailed floor plans
Electrical installation condition reports
Gas safety record
Fire alarm certificate
Emergency lighting certificate
Fire risk assessment
Building control documents