HMO licensing in 2025: mandatory licensing, additional licensing, and what landlords need to check.

A House in Multiple Occupation (HMO) is subject to licensing requirements that do not apply to standard single-household lettings. Getting this wrong carries serious consequences — operating an unlicensed HMO is a criminal offence, and the financial penalties can reach £30,000 per property. This article explains what an HMO is, when mandatory licensing applies, what additional licensing schemes are, and what landlords need to check to confirm whether their property requires a licence. What is a House in Multiple Occupation? A House in Multiple Occupation is a property occupied by three or more people who form more than one household and who share facilities such as a kitchen, bathroom, or toilet. Examples include shared houses occupied by students or young professionals, bedsit-style properties, and some converted buildings. (Source: Private renting guidance, GOV.UK.) A household is defined as members of the same family living together. Two unrelated individuals each occupying a room in a shared house form two separate households, making the property an HMO. What is mandatory HMO licensing? Mandatory HMO licensing requires landlords of certain HMOs to obtain a licence from their local housing authority before letting the property. Mandatory licensing applies to any HMO occupied by five or more persons forming two or more separate households, regardless of the number of storeys the property has. (Source: Houses in Multiple Occupation and residential property licensing reform — guidance for local housing authorities, Ministry of Housing, Communities and Local Government, December 2018.) Prior to October 2018, mandatory licensing only applied to HMOs of three or more storeys. The Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 extended mandatory licensing to include properties of any height — including two-storey houses and flats — provided they meet the occupation threshold of five or more persons from two or more households. This change came into force on 1 October 2018. (Source: HMO licensing reform guidance, MHCLG, December 2018.) What buildings are covered by mandatory licensing? The mandatory licensing regime covers three categories of building. First, properties meeting the standard test — buildings where more than one household shares basic amenities such as a toilet, washing facilities, or cooking facilities. This includes conventional shared houses. Second, properties meeting the self-contained flat test — individual flats occupied by five or more persons from more than one household where facilities are shared within the flat. Third, properties meeting the converted building test — buildings that have been converted and contain one or more units of accommodation that are not self-contained flats. (Source: HMO licensing reform guidance, MHCLG, December 2018.) Mandatory licensing does not apply to purpose-built flats in a block of three or more self-contained flats, even if an individual flat within the block is in multiple occupation. (Source: HMO licensing reform guidance, MHCLG, December 2018.) What is additional HMO licensing? Additional licensing is a discretionary scheme that local housing authorities can introduce to require licensing of HMOs that fall outside the mandatory licensing threshold. A council may designate an area as subject to additional licensing where it considers that a significant proportion of HMOs in that area are being managed sufficiently ineffectively as to give rise to problems. (Source: HMO licensing reform guidance, MHCLG, December 2018.) Additional licensing schemes vary considerably between local authorities. Some councils extend licensing to HMOs with three or more occupants. Others apply additional licensing to specific property types or specific geographic areas. A landlord cannot assume that because their property falls below the mandatory licensing threshold it does not require a licence — they must check with their local authority. What is selective licensing? Selective licensing is a separate scheme that applies to all privately rented properties in a designated area, not just HMOs. A council may introduce selective licensing in an area experiencing problems such as low housing demand, antisocial behaviour, or poor property conditions. Where selective licensing applies, every landlord letting a property in that area must obtain a licence, regardless of the size of the property or the number of occupants. (Source: How to Rent guide, DLUHC, October 2023.) What are the minimum sleeping room sizes for licensed HMOs? From 1 October 2018, all HMO licences must include conditions specifying minimum sleeping room sizes. The minimum floor area for a room used as sleeping accommodation is 6.51 square metres for one person over the age of ten, 10.22 square metres for two persons over the age of ten, and 4.64 square metres for a child under the age of ten. No part of a room where the ceiling height is less than 1.5 metres counts toward the floor area measurement. (Source: HMO licensing reform guidance, MHCLG, December 2018.) Rooms smaller than 4.64 square metres must not be used as sleeping accommodation, and the landlord must notify the local housing authority of any such room in the property. What are the licence conditions? An HMO licence sets out the conditions under which the property may be operated. Mandatory conditions in every HMO licence include requirements relating to smoke and carbon monoxide alarms, gas safety, the safety of electrical appliances and furniture, minimum sleeping room sizes, and waste disposal arrangements. (Source: HMO licensing reform guidance, MHCLG, December 2018.) Local housing authorities may also impose additional conditions specific to the property, covering matters such as the management and maintenance of common areas, the maximum number of occupants, and the provision of adequate facilities. Who can hold an HMO licence? The local housing authority must be satisfied that the proposed licence holder is a fit and proper person. In assessing this, the authority will consider whether the applicant has any convictions for offences involving fraud, dishonesty, violence, drugs, or unlawful discrimination, or any previous contraventions of housing legislation. The proposed manager of the property must also be a fit and proper person. (Source: HMO licensing reform guidance, MHCLG, December 2018.) What are the penalties for operating an unlicensed HMO? A landlord who operates an HMO that requires a licence without obtaining one is committing a criminal offence. The local housing authority may impose a financial penalty of up to £30,000 as an alternative to prosecution. Where a prosecution is pursued, the landlord is liable to an unlimited fine on conviction. (Source: HMO licensing reform guidance, MHCLG, December 2018.) In addition, a landlord who has received rent in respect of an unlicensed HMO may be subject to a rent repayment order. A tenant or local authority may apply to the First-tier Tribunal for the landlord to repay up to 12 months of rent. The Renters' Rights Act 2025 doubles the maximum amount recoverable under a rent repayment order and requires that repeat offenders repay the maximum amount. (Source: Guide to the Renters' Rights Act, GOV.UK, published 6 November 2025.) How does a landlord apply for an HMO licence? Applications for HMO licences are made to the local housing authority for the area in which the property is located. The authority must be satisfied that the property is reasonably suitable for occupation by the number of persons specified, that the licence holder and manager are fit and proper persons, and that the management arrangements are satisfactory. (Source: HMO licensing reform guidance, MHCLG, December 2018.) Licence fees and application processes vary between local authorities. A licence is typically valid for up to five years and must be renewed before it expires. Operating a property under an expired licence carries the same penalties as operating without a licence. What this means for landlords The occupation threshold for mandatory licensing is five or more persons forming two or more households. Any property meeting this threshold requires a mandatory HMO licence regardless of the number of storeys. Landlords who are unsure whether their property meets the definition should check with their local housing authority. Additional and selective licensing schemes mean that some properties below the mandatory threshold also require a licence. The only way to confirm whether a property requires a licence under a local scheme is to check directly with the relevant local authority. Minimum sleeping room sizes apply to all licensed HMOs. Rooms below the prescribed minimums cannot lawfully be used as sleeping accommodation, and landlords must notify the authority of any room below 4.64 square metres. Operating without a licence where one is required carries a financial penalty of up to £30,000 and exposure to rent repayment orders covering up to 12 months of rent. This article is for informational purposes only and does not constitute legal advice.