HMO licence: when you need one

You need a mandatory HMO licence anywhere in England if your property is a house in multiple occupation occupied by 5 or more people forming 2 or more separate households. Your council can also require a licence for smaller HMOs through an additional licensing scheme, so an HMO below the 5-person line may need one too. Apply before you let, or as soon as a scheme starts.

HMO licensing is part of our landlord compliance checklist. For the wider changes HMO landlords face, see our guide to the Renters' Rights Act for HMO landlords.

Do I need an HMO licence?

There are three licensing schemes under the Housing Act 2004. Work through them in this order.

Scheme	When it applies	Where
Mandatory HMO licence	An HMO occupied by 5 or more people in 2 or more separate households, which meets the standard test, the converted building test or the self-contained flat test	Everywhere in England
Additional HMO licence	Smaller HMOs of a description the council has chosen	Only where the council has designated all or part of its district
Selective licence	Most privately rented houses, not just HMOs	Only where the council has designated an area

Purpose-built flats in a block of three or more flats are excluded from the mandatory test. The mandatory description is set by the Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018, in force since 1 October 2018.

Additional licensing

A council can introduce additional licensing for smaller HMOs if it considers that a significant proportion of them are managed so ineffectively that they cause problems. A designation lasts at most 5 years. If you let a smaller HMO, check your council's scheme rather than assuming the mandatory test is all that matters.

For houses that aren't HMOs, read our guide to selective licensing.

How to check your council's licensing rules

There is no single official national list of schemes that we could find, so use these official routes:

1. GOV.UK's HMO licence service: enter the postcode to reach your council's licensing page or apply online.
2. GOV.UK's Find your local council, then the council's private sector housing or licensing pages.
3. The council's published designation notice. Councils must publish one when they make a designation, stating when it comes into force.
4. The council's public register of licences in force.

From late 2026, the new private rented sector database entry for each property will also record any HMO, additional or selective licence, under the draft regulations.

Licence conditions, room sizes and renewal

A licence lasts up to 5 years; the expiry date is on the licence. Every licence includes mandatory conditions, including:

• giving the council a gas safety certificate every year;
• keeping electrical appliances, furniture and installations safe, and giving the council a declaration when asked;
• fitting smoke and carbon monoxide alarms, and declaring their condition and position when asked;
• giving occupiers a written statement of the terms of their occupation;
• minimum bedroom sizes.

Sleeping room used by	Minimum floor area
One person over 10	6.51 m²
Two people over 10	10.22 m²
One child under 10	4.64 m²

HMOs also come under the HMO management regulations, which cover fire escape routes, fire alarms and equipment. See our fire safety guide.

HMO licence cost (estimate)

Councils set their own fees, limited to recovering their costs, and usually charge in two parts: one on application and one when the licence is granted. As an estimate for a five-year licence:

Licence	Typical fee (estimate)
Mandatory HMO	About £500 to £1,500, with most councils between £600 and £1,100
Additional HMO	About £400 to £1,200

These ranges come from a single commercial guide reviewed in October 2026, which gives no underlying data. Many councils offer discounts to accredited landlords. Always check your council's fee schedule.

Penalties, and does an unlicensed HMO stop eviction?

Letting a licensable HMO without a licence is a criminal offence. The council can:

• prosecute, with an unlimited fine on conviction; or
• impose a civil penalty of up to £40,000 for conduct on or after 1 May 2026 (the old £30,000 cap applies to earlier conduct).

Breaching licence conditions or the HMO management regulations can also bring civil penalties of up to £40,000. Tenants, or the council, can seek a rent repayment order of up to 2 years' rent for licensing offences committed on or after 1 May 2026, previously 12 months. Superior landlords can now be liable too.

On possession, the old rule that blocked a section 21 notice for an unlicensed HMO was removed on 1 May 2026, and there is no licensing condition in the Housing Act 1988 section 7. Separately, if a licence is refused or revoked, or the HMO is over-occupied beyond its licence, Ground 6B may let you recover possession to comply, though the court can order you to compensate the tenant.

Watch out: An unlicensed HMO no longer stops you serving a Section 8 notice, but the penalty and rent repayment risk is high. Apply for the licence first.

HMO licence checklist

• Count the occupiers and households, and check the mandatory test.
• Check whether your council runs additional or selective licensing.
• Apply before letting, or as soon as a scheme starts, and keep proof of the date.
• Check every bedroom meets the minimum size for its occupiers.
• Send the council a gas safety certificate every year.
• Meet the fire, alarm and management conditions.
• Note the licence expiry date and apply to renew in good time.

What to do next

Add your licence expiry date and the annual gas certificate deadline to ValidNotice's free compliance reminders. Then read our guides to selective licensing and fire safety in HMOs.