HMO Licensing Requirements for Landlords | Coopers Inventory Services

A House in Multiple Occupation (HMO) is a type of rented property occupied by people who form more than one household and share certain facilities.

HMOs are subject to additional management and safety requirements because several unrelated occupiers may be living within the same property.

Some HMOs must also be licensed by the local authority.

For landlords and property managers, one of the most important distinctions to understand is:

A property can be an HMO without necessarily requiring mandatory HMO licensing — but it may still require a licence under a local additional licensing scheme.

This means landlords should check both the national requirements and the rules operated by the council where their property is located.

A property will commonly be an HMO where:

A household can be a single person or members of the same family living together. Couples living together are generally treated as one household for these purposes.

HMOs can include shared houses occupied by professionals, students and other groups of unrelated tenants.

The important factors are the number of occupiers, their household relationships and how the accommodation and facilities are arranged.

There are two important forms of HMO licensing landlords should understand.

In England, mandatory HMO licensing generally applies where a property is occupied by:

five or more people

who form:

two or more households.

The old requirement that the property also had to have at least three storeys was removed in 2018.

So, for example:

Three unrelated tenants sharing a house

This may be an HMO, but it would not normally meet the five-person threshold for mandatory HMO licensing.

Five unrelated tenants sharing a house

This would generally fall within mandatory HMO licensing.

But that isn't the end of the story.

Local authorities can introduce additional licensing schemes covering HMOs that don't fall within the national mandatory licensing regime.

This means a property occupied by three or four people from different households could potentially require an HMO licence in an area where an additional licensing scheme applies.

This is particularly important for Coopers' audience we are covering properties across Surrey and surrounding areas, which means our clients may be dealing with different local authorities.

A landlord shouldn't assume:

“It has fewer than five tenants, so I don't need a licence.”

Instead, check the licensing requirements for the specific council area in which the property is located.

Landlords can use the government's licence finder as a starting point and should check directly with their local authority.

Check whether you need an HMO licence — GOV.UK

The council can confirm whether the property falls within:

This is particularly important when purchasing a rental property, converting an existing property into shared accommodation or changing the number or type of occupants.

Where a licence is required, an application is made to the local council.

The council sets its own application fee and will consider matters including whether the property is suitable for the proposed number of occupants and whether the proposed manager or licence holder satisfies the relevant requirements.

The council will consider whether the manager is a fit and proper person, which can include consideration of matters such as relevant criminal offences and previous breaches of landlord legislation.

A separate licence is generally required for each HMO requiring licensing.

An HMO licence can be valid for up to five years, although the council can grant one for a shorter period.

The landlord must renew the licence before it expires if the property will continue to require licensing.

HMO licences don't last forever

Keep the licence expiry date recorded and begin checking renewal requirements well before it expires.

Obtaining the licence isn't simply an administrative exercise.

Licensed HMOs must comply with licence conditions.

National requirements include matters concerning:

Local authorities can also impose additional licence conditions according to the property and circumstances.

Landlords may not realise that licensed HMOs have national minimum sleeping-room requirements.

For HMO licences in England, the national minimum floor areas for rooms used as sleeping accommodation are:

Occupant. Minimum floor area.

One person aged 10 or over 6.51 m²

Two people aged 10 or over 10.22 m²

One child under 10. 4.64 m²

Rooms below 4.64 m² must not be used as sleeping accommodation.

Councils can impose standards that are higher than these national minimums, so landlords should check the requirements of their individual local authority.

HMOs can require particular attention to safety because multiple households occupy the same property.

Depending upon the property and circumstances, landlords and managers may need to consider matters including:

Licence conditions include requirements relating to gas safety certificates and smoke alarms, while landlords also remain subject to wider property-safety legislation.

There are also specific regulations concerning the management of HMOs.

The Management of Houses in Multiple Occupation (England) Regulations 2006 place responsibilities on HMO managers concerning matters including safety, utilities, common parts, living accommodation and waste disposal.

Good HMO management can therefore involve much more than collecting rent.

Landlords and property managers should maintain appropriate systems for:

Regular property inspections can help identify visible deterioration or maintenance concerns before they become more serious.

Landlords shouldn't assume that obtaining the licence means nothing needs to be reviewed until renewal.

GOV.UK advises HMO landlords to tell the council where relevant circumstances change, including where:

Changes in occupation can potentially affect suitability, occupancy limits and licensing conditions.

Operating an HMO without a required licence can have serious consequences.

GOV.UK states that renting out an HMO without the required licence can result in an unlimited fine.

Housing legislation also provides local authorities with civil-penalty powers for offences involving unlicensed HMOs and breaches of licence conditions.

There can also be other consequences under housing legislation, including the possibility of a Rent Repayment Order in qualifying circumstances.

So landlords should establish licensing requirements before operating a property as an HMO rather than waiting for the council to raise the issue.

HMOs can experience a higher level of occupation and use than properties occupied by a single household, making clear and consistent property records particularly valuable.

Coopers Inventory Services provides independent written and photographic property reporting throughout the tenancy lifecycle.

A detailed Inventory & Schedule of Condition can establish the condition of individual rooms, communal areas, fixtures, furnishings and contents at the beginning of a tenancy.

Mid-Term Property Inspections can then provide a documented snapshot of visible property condition during occupation, helping landlords and property managers identify matters that may require further investigation or maintenance.

At the end of the tenancy, a Check-Out Report records the property's condition again and can be compared with earlier reports.

Coopers property reports are not HMO licence inspections, HHSRS assessments or fire-risk assessments and do not certify that a property complies with HMO licensing requirements. Landlords should check requirements directly with the relevant local authority and obtain specialist assessments where necessary.