HMO Licensing Guide: When You Need a Licence and How to Get One

If you rent a property to three or more tenants from two or more households, you may need an HMO licence. In England, operating without a required licence can result in a civil penalty of up to £40,000 and rent repayment orders covering up to 2 years' rent (since 1 May 2026).

What is an HMO?

A House in Multiple Occupation (HMO) is a property rented to 3 or more tenants from 2 or more separate households who share facilities like a bathroom or kitchen. Common examples include student houses, professional house shares, and bedsits.

Mandatory licensing

You must have a licence if your property:

• Is occupied by 5 or more tenants
• Forms 2 or more separate households
• Tenants share toilet, bathroom, or kitchen facilities

In England this applies regardless of the number of storeys (since October 2018). In Wales, mandatory licensing covers HMOs of three or more storeys with five or more occupiers in two or more households; councils can require licences for smaller HMOs through additional licensing. See GOV.UK and GOV.WALES.

Additional licensing

Many local councils have introduced additional licensing schemes that cover smaller HMOs (3-4 tenants). Check your local council's website to see if your area is covered. These schemes are council-specific and change regularly.

Selective licensing

Some councils operate selective licensing schemes that cover all privately rented properties in designated areas — not just HMOs. Again, check with your local council.

How to apply

1. Check if your property needs a licence via your local council's website
2. Complete the application form (usually online)
3. Pay the fee (typically £500-£1,500, varies by council)
4. The council will inspect the property
5. If approved, a licence is granted (usually for 5 years)

Licence conditions

HMO licences come with conditions you must meet:

• Maximum number of occupants
• Minimum room sizes (6.51m² single, 10.22m² double)
• Adequate kitchen and bathroom facilities
• Fire safety measures (alarms, fire doors, escape routes)
• Annual gas safety checks
• Waste disposal arrangements

Penalties for non-compliance

• Unlimited fine for operating without a licence (criminal prosecution)
• Civil penalty of up to £40,000 as an alternative to prosecution (England, since 1 May 2026; previously £30,000)
• Rent repayment orders: tenants can claim back up to 2 years' rent (England, since 1 May 2026)
• Possession risk: licensing breaches can undermine possession claims and trigger enforcement

HMO management in Tendmere

In Tendmere you add each HMO tenant to the property with their own rent, deposit and payment record, and keep compliance records for the property. There is no separate room record yet. Licence expiry dates are tracked alongside your other compliance deadlines.