When does a property need a mandatory HMO licence?

A property needs a mandatory HMO licence when it is occupied by five or more people forming two or more separate households who share basic amenities such as a kitchen, bathroom or toilet. The number of storeys no longer matters.

What is the difference between additional and selective licensing?

Additional licensing extends HMO licensing to smaller HMOs (three or more people from two or more households) in a designated area. Selective licensing covers all private rentals in a designated area, whether or not they are HMOs. Both are set locally, so you must check your council.

How do I get an HMO licence?

You apply to the local council, pay a fee, and meet the licence conditions covering safety, amenities and management. Licences typically last up to five years.

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Landlord compliance

HMO licensing explained: what landlords need in 2026

Q: What is the penalty for an unlicensed HMO?

Operating an HMO without a required licence can bring an unlimited fine on prosecution or a civil penalty of up to £30,000, and tenants can apply for a rent repayment order of up to 12 months' rent.

Rent to a houseshare and you may need a licence you didn't know existed. Here's when an HMO licence is required, the three types of scheme, and the serious penalties for getting it wrong.

Written for UK landlords (England) · Last updated August 2026 · 6 min read

The quick answer: A property needs a mandatory HMO licence when 5 or more people from 2 or more households share amenities like a kitchen or bathroom. Below that, your council may still require an additional licence (3+ people, 2+ households) or a selective licence (any rental in a designated area). Running an unlicensed HMO risks an unlimited fine or up to £30,000, plus a rent repayment order.

What counts as an HMO?

An HMO — House in Multiple Occupation — is, broadly, a property rented to people who aren't all one household and who share facilities. Think three friends sharing a flat, or a house let room-by-room to unrelated tenants. "Household" means a single person or members of one family, so unrelated sharers each count as a separate household.

The three types of licensing

Mandatory HMO licence. Required nationwide where 5+ people in 2+ households share amenities. The old "three storeys" rule is gone — the number of floors doesn't matter.

Additional licensing. A council can extend HMO licensing to smaller HMOs (typically 3+ people, 2+ households) in a designated area.

Selective licensing. A council can require a licence for any privately rented home — HMO or not — in a designated area, usually to tackle poor conditions locally.

Because additional and selective schemes are set by each local authority, two identical houses in different boroughs can have completely different requirements. Always check the council for the property's postcode.

🔔 How ProPixa helps

ProPixa keeps each property's licence — the type, the number and the expiry — on file with your other compliance, and warns you before an HMO licence runs out (they typically last up to five years, and it's easy to forget). One less deadline to hold in your head.

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What a licence involves

You apply to the council and pay a fee (which varies widely by area). In return you must meet conditions covering the essentials of a safe, well-run shared home:

Adequate room sizes and enough kitchen, bathroom and toilet facilities for the number of occupiers.
Working fire safety measures — alarms, and often fire doors and clear escape routes.
Up-to-date gas and electrical safety certificates.
A named, "fit and proper" manager responsible for the property.

Licences generally last up to five years, after which you renew.

The penalties for getting it wrong

Up to £30,000 — and then some. Operating an HMO without a required licence can bring an unlimited fine on prosecution, or a civil penalty of up to £30,000. On top of that, tenants (or the council) can seek a Rent Repayment Order making you pay back up to 12 months' rent. And while a property is unlicensed, your ability to regain possession can be affected too. This is an expensive one to overlook.

Your HMO checklist

Count the occupiers and households — do you hit the mandatory 5/2 threshold?
Check the council for the postcode for any additional or selective scheme.
Apply for the right licence and pay the fee before letting.
Meet the conditions — room sizes, fire safety, certificates, management.
Diary the renewal date — or let ProPixa track it.

Frequently asked questions

Is a couple in a shared house one household or two?

A couple counts as one household. So a house with a couple plus three unrelated tenants is four households and five people — which would meet the mandatory threshold.

Do I need a licence for a family renting my whole house?

A single family renting a whole property isn't an HMO, so no mandatory HMO licence — but a selective licensing scheme in that area could still require a licence for any rental.

Does each room need its own licence?

No — one licence covers the property, based on the number of occupiers and households it's approved for. You must not exceed the numbers your licence permits.

How long does it take to get a licence?

It varies by council and can take several weeks or months. Apply well ahead of letting — you shouldn't operate a licensable HMO while unlicensed.

Keep every licence and certificate in one place

ProPixa files your HMO licence alongside your safety certificates and warns you before anything expires. Free for your first two months, no card needed.

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