HMO Licensing FAQs

An HMO is a property rented by three or more people who form more than one household and share amenities such as a kitchen or bathroom. A 'household' means a single person, or members of the same family living together (including couples). So a property shared by three unrelated individuals is an HMO.

The terms are often used interchangeably. A shared house where tenants are from different households is typically an HMO. What matters for licensing purposes is the number of occupants and households — not what the property is called.

It depends on the occupation. If a purpose-built flat is rented to five or more people from two or more households, it will require a mandatory HMO licence. If it falls within an additional licensing zone and has three or more unrelated tenants, it may need an additional licence too.

You need a mandatory HMO licence if your property is rented to five or more people from two or more households who share facilities. This applies throughout England and Wales. If you have five unrelated tenants in a shared house, you need a mandatory licence regardless of which London borough you are in.

An additional HMO licence is a borough-specific licence that extends HMO licensing to smaller properties — typically those with three or more tenants from two or more households. Not all boroughs operate additional licensing schemes, and those that do may only cover certain postcode areas within the borough.

Possibly — depending on your borough. Three tenants from different households sharing a property constitutes an HMO. Whether you need a licence depends on whether your borough has an additional HMO licensing scheme covering your area. Contact us for a free check on your specific property.

If you live in the property as your main home and rent to one or two lodgers, the property is generally not considered an HMO for licensing purposes. However, if you are not resident and there are three or more people from different households, it is likely to be an HMO.

No — not since October 2018. Before that date, mandatory HMO licensing only applied to properties with three or more storeys. The storey requirement was removed in October 2018, so now any property with five or more qualifying occupants requires a mandatory licence, regardless of the number of floors.

Operating an unlicensed HMO is a criminal offence under the Housing Act 2004. Penalties include: civil financial penalties of up to £30,000 per offence, prosecution leading to an unlimited criminal fine, banning orders prohibiting you from letting or managing properties, and rent repayment orders where tenants can reclaim up to 12 months of rent paid during unlicensed occupation.

Yes. Tenants (and local authorities) can apply to the First-tier Tribunal for a Rent Repayment Order (RRO) requiring the landlord to repay up to 12 months of rent paid during the period of unlicensed operation. This applies even if the tenants were paying rent voluntarily.

Yes. Under the Housing and Planning Act 2016, local authorities can apply for a Banning Order against a landlord who commits certain housing offences, including operating an unlicensed HMO. A banning order can prohibit you from letting or managing properties in England for a specified period.

Council processing times vary significantly — typically between 8 and 16 weeks depending on the borough. Some boroughs are faster, some take longer, particularly if they require an inspection before determining the application. We submit complete, compliant applications that minimise the risk of delays due to missing information.

Documentation requirements vary by borough but typically include: gas safety certificate, electrical installation condition report (EICR), energy performance certificate (EPC), fire alarm and emergency lighting certificates, floor plan of the property, and details of the landlord or managing agent. We advise exactly what is needed for your borough.

Some boroughs require an inspection as part of the application process; others determine applications on the basis of documentation alone. Where an inspection is required, we prepare you for what the officer will check and ensure your property meets the required standards beforehand.

Before granting a licence, the council must be satisfied that the proposed licence holder (usually the landlord or managing agent) is a 'fit and proper person'. This means they will check for relevant criminal convictions, previous housing offences, and any history of poor property management. We guide you through this requirement.

Our service fee is £300+VAT for an Additional HMO Licence and £500+VAT for a Mandatory HMO Licence. This is a fixed, all-inclusive fee covering everything from initial assessment to licence confirmation. Council application fees are separate and payable directly to the borough.

Council fees are set by each borough and vary considerably. Additional licence fees typically range from £300 to £700. Mandatory licence fees are generally higher, ranging from £500 to £1,200 or more. We provide the exact fee for your borough before you commit to anything.

HMO licences are issued for up to five years. Councils may issue licences for shorter periods where there are concerns about the property or management standards. We advise on what affects the licence duration and can also assist with renewals.

An HMO licence is not transferable. If you sell a licensed HMO property, the buyer will need to apply for their own licence. If you are buying an HMO, contact us before completion to understand the licensing status and any actions needed.

We handle everything. After you provide us with your property details and supporting documentation, we prepare the complete application, submit it to the correct borough team, liaise with council officers throughout, respond to any additional information requests, and notify you when your licence is confirmed. You don't need to contact the council at all.

Yes. When your existing HMO licence approaches expiry, we can handle the renewal application. Contact us at least three months before your licence expires to ensure there is no gap in your licenced status.