HMO licence: do you need one, and what does it involve?

A house in multiple occupation (HMO) is a shared house or flat let to people who are not all one family. HMOs carry extra duties under the Housing Act 2004 and the 2006 HMO management regulations, and many of them need a licence from the council.

What counts as an HMO

In England, a property is an HMO if both of these apply:

• at least 3 tenants live there, forming more than one household, and
• they share a toilet, bathroom or kitchen.

A household is either a single person or members of the same family living together. So three friends sharing a house is an HMO; a couple and their children is not.

Being an HMO doesn’t automatically mean you need a licence. That depends on whether it reaches the 5-person mandatory threshold and whether the council has an additional licensing scheme.

Do I need an HMO licence?

There are three types of licensing in England, summarised on GOV.UK’s HMO page for landlords.

The number of storeys no longer matters for mandatory licensing in England. Additional and selective schemes are set locally and can cover the whole council area or a few streets, so always check your council’s website, even for a 3-bed share.

Scotland

In Scotland you need an HMO licence if you let to 3 or more tenants who are not related or part of the same family. That is a much lower threshold than England’s mandatory scheme. The council checks you are fit and proper and that the property meets the required standards. Letting without a licence is a criminal offence with a fine of up to £50,000. See our Scotland landlord requirements guide.

Wales

Wales still uses the older mandatory test, explained in the Welsh Government’s HMO licensing guide: a house with 3 or more storeys occupied by 5 or more people from 2 or more households. Habitable basements and attics count as storeys, and so does a shop on the ground floor. Many Welsh councils also run additional licensing for smaller HMOs. HMO licensing is separate from Rent Smart Wales registration, so you may need both. See our Wales landlord requirements guide.

How to apply

1. Check with your council whether your property needs a licence, and which type.
2. Gather documents. Councils usually ask for a floor plan with room sizes, a current gas safety record, an EICR, details of fire alarms and fire doors, and details of the manager. Some ask for an EPC and tenancy agreement too.
3. Apply online through the council. You can apply yourself, or a managing agent can apply for you.
4. Pay the fee. Most councils split it into two parts: one when you apply, and one when the licence is granted.
5. Inspection. The council checks the property is suitable for the number of occupiers and that the licence holder and manager are “fit and proper”.
6. Draft and final licence. You get a chance to comment on the proposed conditions before the licence is issued.

In England a licence lasts a maximum of 5 years. Apply to renew well before it runs out.

How much does an HMO licence cost?

Councils set their own fees, and they vary a lot. Examples for 2026/27:

Many councils charge more for larger HMOs, add charges for incomplete or late applications, and offer discounts for accredited landlords or early renewal. Treat these as examples only and check your own council’s fee schedule.

Licence conditions

Every HMO licence comes with conditions. In England the standard ones include:

• sending the council an updated gas safety certificate every year
• installing and maintaining smoke alarms
• providing safety certificates for electrical appliances when asked

Councils usually add their own conditions too. Common ones cover maximum occupancy per room, minimum room sizes, fire safety measures, waste storage, and how you deal with antisocial behaviour. Breaching a licence condition is an offence in its own right.

You must also tell the council about changes during the licence period, such as building work, a new manager or a change in the number of occupiers.

HMO management duties

The Management of Houses in Multiple Occupation (England) Regulations 2006 apply to all HMOs in England, licensed or not. The manager must:

• give occupiers their name, address and phone number, and display them in the property
• take safety measures, including keeping fire escape routes clear and fire precautions maintained
• maintain the water supply and drainage
• supply and maintain gas and electricity, including safety checks and certificates
• keep the common parts, fixtures, fittings and appliances in good repair
• maintain each person’s living accommodation
• provide suitable waste disposal facilities

These duties sit on top of the usual landlord obligations, such as the annual gas safety check and a 5-yearly EICR.

Fire safety in HMOs

Fire safety is the biggest practical difference between an HMO and a single let. As a minimum, HMOs need working smoke alarms and clear escape routes. Many English councils base their expectations on the LACORS housing fire safety guidance, which can mean 30-minute fire doors and an interlinked detection system depending on size and layout.

The common parts also need a fire risk assessment under the Regulatory Reform (Fire Safety) Order 2005. For a small HMO of up to about 5–6 rooms, a professional assessment typically costs about £200–£450. Ask your council which standard it applies before you buy equipment, because requirements depend on the layout and number of storeys.

Penalties for an unlicensed HMO

Under the Renters’ Rights Act, a landlord who has been convicted of, or fined for, a licensing offence will be required to pay the maximum rent repayment order amount.

In Scotland, letting an HMO without a licence carries a fine of up to £50,000.

Practical tips

• Check before you buy. Licensing designations, council room size standards and Article 4 directions (which remove permitted development rights for small HMOs) can all decide whether a property works as an HMO. Ask the council’s housing and planning teams before you commit.
• Keep certificates in one place. HMO licence conditions usually require you to produce gas, electrical and fire alarm certificates on request.
• Diary the renewal. Use our free certificate reminders for your gas, EICR and licence renewal dates, or try the landlord certificate checker to see what applies to your property.