Quick answer
A property is an HMO if at least 3 tenants from more than 1 household live there and share facilities such as a kitchen or bathroom. In England, a mandatory HMO licence is required if it is let to 5 or more people from more than 1 household who share facilities. Councils can also require additional licensing for smaller HMOs and selective licensing for other rented homes in certain areas. Licences last up to 5 years. Operating a licensable property without a licence can lead to a civil penalty of up to £40,000 and rent repayment orders.
- HMO: 3 or more tenants, more than 1 household, sharing facilities.
- Mandatory licence: 5 or more people from more than 1 household.
- Councils may require additional or selective licences.
- Licences last up to 5 years. One licence per HMO.
- Civil penalties of up to £40,000 from 1 May 2026.
What counts as an HMO?
A household is a family: a single person, a couple, or relatives living together. Three friends sharing a house are three households. A couple and a friend are two households.
| Example | HMO? | Mandatory licence? |
|---|---|---|
| A family of 5 | No, one household | No |
| 3 friends sharing kitchen and bathroom | Yes | No, but check additional licensing |
| 4 students sharing a house | Yes | No, but check additional licensing |
| 5 unrelated professionals sharing a kitchen | Yes | Yes |
| A couple plus 3 friends | Yes, 4 households | Yes, 5 people |
The three types of licensing
- Mandatory HMO licensing: applies across England to HMOs with 5 or more occupiers from more than 1 household sharing facilities.
- Additional licensing: a council can extend licensing to smaller HMOs, for example 3 or 4 occupiers, in all or part of its area.
- Selective licensing: a council can require licences for other privately rented homes in designated areas, even single-household lets.
Because additional and selective schemes vary, always check your council's website before letting.
Licence conditions
To get a licence, the property must be suitable for the number of occupants and the manager must be a 'fit and proper' person. Conditions usually include:
- minimum room sizes and limits on how many people can sleep in each room,
- enough kitchens, bathrooms and toilets for the number of occupants,
- fire safety measures such as fire doors, alarms and escape routes,
- annual gas safety records and 5-yearly electrical inspections given to the council on request,
- safe electrical appliances and furniture,
- proper waste storage and management.
How to apply for an HMO licence
- Check with your council whether the property needs a licence and under which scheme.
- Gather documents: floor plans, gas and electrical certificates, fire safety details and management information.
- Apply to the council and pay the fee, which varies by council.
- The council may inspect the property and set conditions.
- Renew before the licence expires. Licences last up to 5 years.
Penalties for not having a licence
- Civil penalties of up to £40,000 per offence from 1 May 2026, or prosecution.
- Rent repayment orders requiring the landlord to repay up to 2 years' rent to tenants or the council.
- Possible banning orders for serious or repeated offences.
Tenancy agreements in an HMO
HMO tenants are usually assured periodic tenants, either on one joint tenancy agreement or on separate room agreements. Each tenant must receive the required written information before the tenancy is agreed, and every adult needs a right to rent check. Student HMOs may be able to use the new ground 4A for possession at the end of the academic year, if notice was given at the start.
Planning permission and Article 4 areas
Licensing and planning are separate. In some areas, councils use Article 4 directions to require planning permission to turn a family home into a small HMO. Check both licensing and planning rules before converting a property, because a licence does not grant planning permission.
HMO management duties
- Display the manager's name, address and phone number in the property.
- Keep fire escape routes clear and fire safety equipment maintained.
- Keep shared areas clean and in good repair.
- Provide adequate waste disposal facilities.
- Supply annual gas safety records and electrical inspection reports to the council on request.
These management regulations apply to HMOs whether or not they need a licence.
Common questions
How many people make an HMO?
At least 3 tenants from more than 1 household who share facilities. A mandatory licence is needed from 5 people.
How long does an HMO licence last?
Up to 5 years. You need a separate licence for each HMO.
What is the fine for not having an HMO licence?
From 1 May 2026, councils can impose civil penalties of up to £40,000, and tenants can claim rent repayment orders.
Do I need a licence for a 3 bed house share?
Not a mandatory licence, but your council may require one under an additional licensing scheme. Check before letting.
Do I need a licence for a student house?
If it is let to 5 or more students from more than 1 household sharing facilities, yes. Smaller student houses may need one under additional licensing.
Official sources
We check these pages against official GOV.UK guidance. This page is general information for England, not legal advice for your situation.
Letting rooms in a shared house?
Create assured periodic tenancy agreements for each tenant or one joint agreement for the household.
Create an agreement