What is an HMO?
A House in Multiple Occupation is, broadly, a property rented by three or more people who are not from one household but share facilities like a bathroom or kitchen. A large HMO is generally one occupied by five or more people forming more than one household.
Because HMOs house more people and carry higher fire and safety risks, they are subject to stricter standards and, in many cases, mandatory licensing.
The three types of HMO licence
There are three licensing regimes, and which applies depends on the property and the borough it sits in.
- Mandatory
- Required nationwide for larger HMOs, generally those with five or more occupiers from more than one household. Applies regardless of borough.
- Additional
- Introduced by individual councils to cover smaller HMOs not caught by mandatory licensing. Varies borough by borough.
- Selective
- Applies to all privately rented properties in a designated area, not just HMOs. Used by councils to address housing standards locally.
What licensing requires
To grant a licence, councils assess whether the property and the manager meet required standards. Typical conditions include:
- Minimum room sizes and adequate amenities for the number of occupiers
- Fire safety measures, including alarms, fire doors and escape routes
- Gas and electrical safety certification
- A fit and proper person managing the property
- Adequate kitchen and bathroom facilities
- Proper waste and refuse arrangements
The risks of getting it wrong
Operating an unlicensed HMO that requires a licence is a criminal offence. The consequences are serious and can far outweigh the cost of compliance.
fines on prosecution
civil penalty per offence, for offences on or after 1 May 2026
rent, through rent repayment orders
And difficulty regaining possession of your property.
How we help
HMO licensing is one of our specialisms. We manage the entire process so you stay compliant and profitable without the administrative burden. We check which licensing scheme applies in your borough, handle the full licence application and renewals, and ensure the property meets all amenity and fire safety standards. We track borough scheme changes so you’re never caught out, and manage the property room by room to maximise your yield.
