HMO16 May 20269 min read

HMO Licence Requirements in England: A Complete Landlord Guide for 2026

HMO licensing is one of the most misunderstood areas of landlord compliance. Letting a licensable HMO without a licence can result in an unlimited fine and a rent repayment order. Here is what you need to know.

What is an HMO?

A House in Multiple Occupation (HMO) is a property rented out by at least 3 people who are not from one household (e.g. a family) but share facilities like a bathroom or kitchen. The legal definition is set out in Part 2 of the Housing Act 2004.

Common examples include:

  • A house shared by three or more students
  • A property where rooms are rented individually to unrelated professionals
  • A bedsit-style property where each room has a separate tenant

A property does not need to have separate rooms to be an HMO — the key test is whether three or more unrelated people share it and share facilities.

The three tiers of HMO licensing

1. Mandatory licensing

Mandatory HMO licensing applies to all properties in England that are:

  • Occupied by 5 or more people forming 2 or more households
  • At least some of the occupants share toilet, bathroom or kitchen facilities

The 5-person threshold applies regardless of the number of storeys. This was extended by the Licensing of Houses in Multiple Occupation (Mandatory Conditions) (England) Regulations 2018, which removed the previous requirement for the property to be at least 3 storeys.

Mandatory HMO licences are issued by the local authority and typically last for 5 years. The application process, fees, and conditions vary by council.

2. Additional licensing

Local authorities have the power to designate additional licensing schemes that extend licensing requirements to HMOs not covered by mandatory licensing. This can include:

  • Smaller HMOs with fewer than 5 occupants
  • Specific property types in defined areas

Additional licensing schemes must be approved by the Secretary of State and are time-limited. You must check with your local authority whether any additional licensing scheme applies in your area.

3. Selective licensing

Selective licensing is not specific to HMOs — it can apply to all privately rented properties in a designated area, not just HMOs. Local authorities can introduce selective licensing in areas with:

  • Low housing demand
  • Significant anti-social behaviour
  • Poor property conditions
  • High levels of deprivation or migration

Where selective licensing applies, all landlords (not just HMO landlords) must obtain a licence. Check your local authority’s website or the government’s selective licensing register for schemes in your area.

HMO minimum room size standards

Since October 2018, mandatory HMO licences must include conditions relating to minimum room sizes:

  • Single adult sleeping room: minimum 6.51m²
  • Double adult sleeping room (2 adults): minimum 10.22m²
  • Child sleeping room (under 10): minimum 4.64m²

Any room below these sizes must not be used as a sleeping room. Local authorities can impose stricter standards. Rooms just above the minimum are increasingly viewed unfavourably and may be subject to additional conditions.

HMO management regulations

In addition to licensing, HMOs are subject to the Management of Houses in Multiple Occupation (England) Regulations 2006 (as amended). These impose specific obligations including:

  • Maintaining the common parts of the property in good order and repair
  • Ensuring adequate fire precautions are in place and maintained
  • Providing adequate refuse and recycling facilities
  • Ensuring gas and electricity safety standards are met
  • Maintaining water supply and drainage

Failure to comply with the management regulations is a criminal offence carrying a fine of up to £5,000 for each breach.

What happens if you let an HMO without a licence?

Letting a property that requires an HMO licence without obtaining one is a serious criminal offence under the Housing Act 2004. The consequences include:

  • An unlimited fine on conviction in the magistrates’ court (the £20,000 cap was removed in 2016)
  • A rent repayment order — tenants can apply to the First-tier Tribunal to recover up to 12 months’ rent paid during the unlicensed period
  • The landlord may be placed on the Rogue Landlord Database and subject to a banning order preventing them from letting property
  • Local authorities have a duty to prosecute in serious cases

How to apply for an HMO licence

  1. Contact your local authority. Applications are made to the housing department. Most councils now accept online applications.
  2. Prepare your documents. You will typically need: a floor plan of the property, gas safety certificate, EICR, fire alarm test records, emergency lighting test records, and proof of identity for the licence holder.
  3. Confirm the licence holder. The licence holder must be a “fit and proper person” — meaning no unspent convictions for fraud, violence, drugs, or sexual offences, and no history of housing code breaches.
  4. Pay the application fee. Fees vary by council but typically range from £500 to £1,500 for a 5-year licence.
  5. Await inspection. The council may inspect the property as part of the application process.

The impact of the Renters’ Rights Act 2025 on HMOs

The RRA 2025 applies to HMOs in the same way as all other assured tenancies. Key implications include:

  • All HMO tenancies became periodic from 1 May 2026 — no more fixed terms
  • Section 21 notices can no longer be served
  • Rent increases must go through the Section 13 process
  • Awaab’s Law applies — landlords must investigate hazard reports within 5 working days
  • The Information Sheet must be served on all HMO tenants

HMO landlords with multiple tenants on separate agreements may need to serve the Information Sheet on each tenant individually and maintain separate compliance records for each tenancy.

How Comprent helps HMO landlords

Comprent tracks compliance obligations at the property level, meaning all tenancies under one HMO are managed together. Certificate expiry reminders, Awaab’s Law timers, and compliance tasks are all generated automatically. The document vault stores your HMO licence, gas safety certificates, EICR, and fire safety records in one place, with expiry alerts at 60, 30, and 7 days.