HMO licensing: mandatory, additional, selective

A House in Multiple Occupation (HMO) is a property rented to 3 or more unrelated people who share facilities. Most HMOs need a licence from the local council. The rules are complicated, vary between councils, and carry serious fines if ignored, up to £30,000 per property, or unlimited for the worst cases.

Here's what every HMO landlord needs to know about the three types of licensing (mandatory, additional, selective), how to apply in your local area, and what the licensing conditions actually require.

Some buy-to-let mortgages, including HMO buy-to-let mortgages, are not regulated by the Financial Conduct Authority.

Which applies to you

Mandatory HMO licence

Required nationally for HMOs with 5 or more unrelated occupants forming 2 or more separate households. Applies regardless of location. No exceptions. Lasts up to 5 years. Fees typically £700-£1,500.

Additional HMO licensing

Introduced by individual councils to cover smaller HMOs (3-4 occupants, 2+ households). Scope varies by local authority. Check your council's scheme, Havering, Waltham Forest, Newham, and Redbridge all operate additional schemes.

Selective licensing

Introduced by councils in areas of concern (deprivation, ASB, crime). Covers ALL privately rented properties in designated zones, not just HMOs. A standard single-family rental in a selective licensing area still needs a licence.

Article 4 directions

Separate from licensing. Requires planning permission to convert a standard house (C3) to HMO use (C4). Increasingly common in Essex, London, and university towns. Always check before buying to convert.

What licensing conditions typically require

The exact requirements vary by council, but most HMO licences include:

• Fire safety: Fire doors on bedrooms and kitchen, interlinked mains-powered smoke alarms throughout, fire blanket in kitchen, appropriate emergency lighting in some cases.
• Room sizes: Minimum bedroom floor areas (usually 6.51 sq m for single, 10.22 sq m for double). Rooms under 4.64 sq m cannot be used as sleeping accommodation.
• Kitchen and bathroom ratios: Typically 1 kitchen per 5 occupants, 1 bathroom per 5 occupants (council rules vary).
• Fit and proper person test: Licence holder must have no serious criminal convictions, unpaid debts, or history of housing law breaches.
• Gas, electrical, legionella certificates: Annual gas safety, 5-year EICR, legionella risk assessment, PAT testing of appliances.
• Management standards: 24-hour contact, written tenancy agreements, inventory, prescribed information about deposit schemes.

Non-compliance can result in fines up to £30,000 per offence (administrative penalty) or unlimited fines and 3-7 years imprisonment for worst cases. Rent Repayment Orders allow tenants to reclaim up to 12 months' rent from unlicensed landlords.