How to get a HMO Licence

A house in multiple occupation (HMO) can be a great investment for landlords as they can generate more rental income from the individual tenants than by letting the property out to a single occupant. However, HMOs are highly regulated and a landlord will need to complete HMO licence applications depending on their property's local council and potential number of occupants before renting out their property as a HMO. This article explains the process for become an HMO licence holder.

Do I need to apply for a HMO licence?

If you have a residential property with numerous occupants, it may need to be licensed as a “house in multiple occupation” (HMO). A HMO is a property rented out by three or more people forming more than one household. A household is either a single person or members of the same family living together. It can include people who are married, in same-sex relationships, relatives or half-relatives and step-parents or step-children. For example, four unrelated people would make up four households and a property with two couples would make up two households. The second requirement for a HMO is that some or all tenants share basic amenities such as a toilet, a bathroom or a kitchen with other tenants.

Across the whole of England and Wales, large HMOs with 5 or more unrelated persons from more than one household sharing facilities will require a mandatory hmo licence. The exception to the mandatory rule is where there is an individual flat inside a purpose-built block of three or more self-contained flats.

House in multiple occupation licences for smaller HMOs depends on the local authority’s requirements. Aside from the mandatory HMO licensing rules, additional rules can be set out by a local authority declaring  an additional licensing scheme for all HMOs within a specified area of a town or city. For both mandatory and additional licensing schemes, renewal of a licence is required every five years, though some licences can be awarded for shorter periods of time.

‍

Who should apply for a HMO licence?

If you own or lease a property which meets the HMO definition, and you receive rent either from the tenants or through an agent, you are the one who should apply for an HMO licence. Property management agents can apply for the licence on behalf of landlords. For the HMO licence to be granted, the licence holder must be a fit and proper person.

‍

How can you apply for a HMO licence?

The HMO licensing application process is managed by your local council.  You can obtain a licence application form from the local council responsible for the area the HMO is in. There is a licence fee which is sent along with the application, and you must include a set of relevant documents. These comprise at the very minimum the Gas Safety Certificate for the property, the Electrical Safety Certificate, and a plan of the property. You may also be asked to provide PAT certificates, fire alarm and maintenance records, and a sample tenancy agreement. The application fee varies between councils and landlords applying for multiple HMO properties or a new HMO licence can sometimes obtain a discount.

Statute requires you to notify various ‘relevant persons’  that you are making the application, and to notify the local city council of those persons’ details. Relevant persons include the landlord (if you are an agent); any other owner of the HMO if applicable; any person who is a long leaseholder; any mortgagee; the proposed managing agent; any person who has agreed to be bound by a licence if granted.

‍

What factors are taken into account by a local authority?

In order to grant a HMO licence, the local authority must be satisfied that the HMO is reasonably suitable for the number of households or persons permitted to occupy it under the licence, or that it can reasonably be made suitable by the imposition of conditions in the licence.

‍

Whether the HMO is deemed “suitable” for occupation by a certain number of households will normally be determined by the standard of the amenities available, as per the Housing Act 2004. This includes: room sizes, the number and suitability of bathing and toilet facilities (where shared); the provision of wash hand basins in individual rooms; the suitability of kitchen facilities for the number of people sharing them; the availability of laundry facilities; and the provision of fire safety facilities and equipment. Some examples of these features include smoke alarms, an extractor fan in the kitchen and a fire blanket. Landlords may need to apply for planning permission to adapt their property to these requirements.

‍

Local authorities also give regard to the suitability of the landlord and/or the managing agent to manage the HMO. They must be “fit and proper” to do so, bearing in mind any relevant convictions, criminal record or behaviour that would indicate their unsuitability to manage this type of residential accommodation.

‍

Local authorities can set their own guidance as to the standards it will expect to be met. The Upper Tribunal has stated that the size of the accommodation, for example, would be a relevant factor in any assessment. However, guidance does not have the same legal force as the standards set out in the 2004 Act.

What happens if I do not apply for a HMO licence?

HMO landlords who fail to apply for a HMO licence could face fines of up to £20,000. There are additional fines for failing to comply with licence conditions. Further, if the HMO is not adequately licensed you may not be able to evict tenants under a section 21 notice in the case of an Assured Shorthold Tenancy (AST) as it will not be valid where a HMO isn’t licensed as it should be.

Legislate’s AST agreements understand the differences between HMOs, bedsits and sole occupancy agreements. Users on Legislate are invited to create and negotiate contracts on their own terms, whilst being confident that their agreements are sensible and up to date. Read our tutorial to learn how to create your tenancy agreements in minutes with Legislate.

‍

To start legislating today, book a demo or sign up.

‍

If you're not sure if you need an HMO licence you can find out by selecting your council from the list below:

• Do I need an HMO licence in Adur and Worthing Borough?
• Do I need an HMO licence in Adur District?
• Do I need an HMO licence in Allerdale Borough?
• Do I need an HMO licence in Amber Valley Borough?
• Do I need an HMO licence in Arun District?
• Do I need an HMO licence in Ashfield District?
• Do I need an HMO licence in Ashford Borough?
• Do I need an HMO licence in Aylesbury Vale District?
• Do I need an HMO licence in Babergh District?
• Do I need an HMO licence in Barnsley Metropolitan Borough?
• Do I need an HMO licence in Barrow-in-Furness Borough ?
• Do I need an HMO licence in Basildon Borough?
• Do I need an HMO licence in Basingstoke and Deane Borough?
• Do I need an HMO licence in Bassetlaw District?
• Do I need an HMO licence in Bath and North East Somerset?
• Do I need an HMO licence in Bedford Borough?
• Do I need an HMO licence in Birmingham City?
• Do I need an HMO licence in Blaby District?
• Do I need an HMO licence in Blackburn with Darwen Borough?
• Do I need an HMO licence in Blackpool Borough?
• Do I need an HMO licence in Blaenau Gwent County Borough?
• Do I need an HMO licence in Bolsover District?
• Do I need an HMO licence in Bolton Metropolitan Borough?
• Do I need an HMO licence in Borough of Broxbourne?
• Do I need an HMO licence in Borough of Poole?
• Do I need an HMO licence in Boston Borough?
• Do I need an HMO licence in Bournemouth Borough?
• Do I need an HMO licence in Bracknell Forest?
• Do I need an HMO licence in Bradford Metropolitan District?
• Do I need an HMO licence in Braintree District?
• Do I need an HMO licence in Breckland District?
• Do I need an HMO licence in Brentwood Borough?
• Do I need an HMO licence in Bridgend County Borough?
• Do I need an HMO licence in Brighton and Hove City?
• Do I need an HMO licence in Bristol City?
• Do I need an HMO licence in Broadland District?
• Do I need an HMO licence in Bromsgrove District?
• Do I need an HMO licence in Broxtowe Borough?
• Do I need an HMO licence in Buckinghamshire County?
• Do I need an HMO licence in Burnley Borough?
• Do I need an HMO licence in Bury Metropolitan Borough?
• Do I need an HMO licence in Caerphilly County Borough?
• Do I need an HMO licence in Calderdale Metropolitan Borough?
• Do I need an HMO licence in Cambridge City?
• Do I need an HMO licence in Cambridgeshire County?
• Do I need an HMO licence in Cannock Chase District?
• Do I need an HMO licence in Canterbury City?
• Do I need an HMO licence in Cardiff?
• Do I need an HMO licence in Carlisle City?
• Do I need an HMO licence in Carmarthenshire County?
• Do I need an HMO licence in Castle Point Borough?
• Do I need an HMO licence in Central Bedfordshire?
• Do I need an HMO licence in Ceredigion County?
• Do I need an HMO licence in Charnwood Borough?
• Do I need an HMO licence in Chelmsford City?
• Do I need an HMO licence in Cheltenham Borough?
• Do I need an HMO licence in Cherwell District?
• Do I need an HMO licence in Cheshire East (Unitary)?
• Do I need an HMO licence in Cheshire West and Chester?
• Do I need an HMO licence in Chesterfield Borough?
• Do I need an HMO licence in Chichester District?
• Do I need an HMO licence in Chiltern District?
• Do I need an HMO licence in Chorley?
• Do I need an HMO licence in Christchurch Borough?
• Do I need an HMO licence in City of Lincoln?
• Do I need an HMO licence in City of London?
• Do I need an HMO licence in City of York?
• Do I need an HMO licence in Colchester Borough?
• Do I need an HMO licence in Conwy County Borough?
• Do I need an HMO licence in Copeland Borough?
• Do I need an HMO licence in Corby Borough?
• Do I need an HMO licence in Cornwall (Unitary)?
• Do I need an HMO licence in Cotswold District?
• Do I need an HMO licence in Coventry City?
• Do I need an HMO licence in Craven District?
• Do I need an HMO licence in Crawley Borough?
• Do I need an HMO licence in Cumbria County?
• Do I need an HMO licence in Dacorum?
• Do I need an HMO licence in Darlington Borough?
• Do I need an HMO licence in Dartford Borough?
• Do I need an HMO licence in Daventry District?
• Do I need an HMO licence in Denbighshire County?
• Do I need an HMO licence in Derby City?
• Do I need an HMO licence in Derbyshire County?
• Do I need an HMO licence in Derbyshire Dales District?
• Do I need an HMO licence in Devon County?
• Do I need an HMO licence in Doncaster Metropolitan Borough?
• Do I need an HMO licence in Dorset County?
• Do I need an HMO licence in Dover District?
• Do I need an HMO licence in Dudley Metropolitan Borough?
• Do I need an HMO licence in Durham County?
• Do I need an HMO licence in East Cambridgeshire District?
• Do I need an HMO licence in East Devon District?
• Do I need an HMO licence in East Dorset District?
• Do I need an HMO licence in East Hampshire District?
• Do I need an HMO licence in East Hertfordshire District?
• Do I need an HMO licence in East Lindsey District?
• Do I need an HMO licence in East Northamptonshire?
• Do I need an HMO licence in East Riding of Yorkshire?
• Do I need an HMO licence in East Staffordshire Borough?
• Do I need an HMO licence in East Suffolk?
• Do I need an HMO licence in East Sussex County?
• Do I need an HMO licence in Eastbourne Borough?
• Do I need an HMO licence in Eastleigh Borough?
• Do I need an HMO licence in Eden District?
• Do I need an HMO licence in Elmbridge Borough?
• Do I need an HMO licence in Epping Forest District?
• Do I need an HMO licence in Epsom and Ewell Borough?
• Do I need an HMO licence in Erewash Borough?
• Do I need an HMO licence in Essex County?
• Do I need an HMO licence in Exeter City?
• Do I need an HMO licence in Fareham Borough?
• Do I need an HMO licence in Fenland District?
• Do I need an HMO licence in Flintshire County?
• Do I need an HMO licence in Forest Heath District?
• Do I need an HMO licence in Forest of Dean District?
• Do I need an HMO licence in Fylde Borough?
• Do I need an HMO licence in Gateshead Metropolitan Borough?
• Do I need an HMO licence in Gedling Borough?
• Do I need an HMO licence in Gloucester City?
• Do I need an HMO licence in Gloucestershire County?
• Do I need an HMO licence in Gosport Borough?
• Do I need an HMO licence in Gravesham Borough?
• Do I need an HMO licence in Great Yarmouth Borough?
• Do I need an HMO licence in Guildford Borough?
• Do I need an HMO licence in Gwynedd County?
• Do I need an HMO licence in Halton Borough?
• Do I need an HMO licence in Hambleton District?
• Do I need an HMO licence in Hampshire County?
• Do I need an HMO licence in Harborough District?
• Do I need an HMO licence in Harlow?
• Do I need an HMO licence in Harrogate Borough?
• Do I need an HMO licence in Hart District?
• Do I need an HMO licence in Hartlepool Borough?
• Do I need an HMO licence in Hastings Borough?
• Do I need an HMO licence in Havant Borough?
• Do I need an HMO licence in Herefordshire?
• Do I need an HMO licence in Hertfordshire County?
• Do I need an HMO licence in Hertsmere Borough?
• Do I need an HMO licence in High Peak Borough?
• Do I need an HMO licence in Hinckley and Bosworth Borough?
• Do I need an HMO licence in Horsham District?
• Do I need an HMO licence in Huntingdonshire District?
• Do I need an HMO licence in Hyndburn Borough?
• Do I need an HMO licence in Ipswich Borough?
• Do I need an HMO licence in Isle of Anglesey County?
• Do I need an HMO licence in Isle of Wight?
• Do I need an HMO licence in Isles of Scilly?
• Do I need an HMO licence in Kent County?
• Do I need an HMO licence in Kettering Borough?
• Do I need an HMO licence in King's Lynn and West Norfolk Borough?
• Do I need an HMO licence in Kingston-upon-Hull City?
• Do I need an HMO licence in Kirklees?
• Do I need an HMO licence in Knowsley Metropolitan Borough?
• Do I need an HMO licence in Lancashire County?
• Do I need an HMO licence in Lancaster City?
• Do I need an HMO licence in Leeds City?
• Do I need an HMO licence in Leicester City?
• Do I need an HMO licence in Leicestershire County?
• Do I need an HMO licence in Lewes District?
• Do I need an HMO licence in Lichfield District?
• Do I need an HMO licence in Lincolnshire County?
• Do I need an HMO licence in Liverpool City?
• Do I need an HMO licence in London Borough of Barking and Dagenham?
• Do I need an HMO licence in London Borough of Barnet?
• Do I need an HMO licence in London Borough of Bexley?
• Do I need an HMO licence in London Borough of Brent?
• Do I need an HMO licence in London Borough of Bromley?
• Do I need an HMO licence in London Borough of Camden?
• Do I need an HMO licence in London Borough of Croydon?
• Do I need an HMO licence in London Borough of Ealing?
• Do I need an HMO licence in London Borough of Enfield?
• Do I need an HMO licence in London Borough of Hackney?
• Do I need an HMO licence in London Borough of Hammersmith & Fulham?
• Do I need an HMO licence in London Borough of Haringey?
• Do I need an HMO licence in London Borough of Harrow?
• Do I need an HMO licence in London Borough of Havering?
• Do I need an HMO licence in London Borough of Hillingdon?
• Do I need an HMO licence in London Borough of Hounslow?
• Do I need an HMO licence in London Borough of Islington?
• Do I need an HMO licence in London Borough of Lambeth?
• Do I need an HMO licence in London Borough of Lewisham?
• Do I need an HMO licence in London Borough of Merton?
• Do I need an HMO licence in London Borough of Newham?
• Do I need an HMO licence in London Borough of Redbridge?
• Do I need an HMO licence in London Borough of Richmond upon Thames?
• Do I need an HMO licence in London Borough of Southwark?
• Do I need an HMO licence in London Borough of Sutton?
• Do I need an HMO licence in London Borough of Tower Hamlets?
• Do I need an HMO licence in London Borough of Waltham Forest?
• Do I need an HMO licence in London Borough of Wandsworth?
• Do I need an HMO licence in Luton Borough?
• Do I need an HMO licence in Maidstone Borough?
• Do I need an HMO licence in Maldon District?
• Do I need an HMO licence in Malvern Hills District?
• Do I need an HMO licence in Manchester City?
• Do I need an HMO licence in Mansfield District?

‍‍The opinions on this page are for general information purposes only and do not constitute legal advice on which you should rely.

‍