HMO licence: rules, costs and room sizes in England, 2026

What is an HMO?

An HMO, short for house in multiple occupation, is a home rented by at least three people who are not all from one household and who share a toilet, bathroom or kitchen. A typical example is a house let room by room to people who did not know each other before they moved in.

GOV.UK defines a household as either a single person or members of the same family who live together. Family includes couples, relatives and step-relatives. Three friends sharing a house are three households. A couple and one friend are two households.

The legal tests are in section 254 of the Housing Act 2004. They look at whether the occupiers live there as their only or main home, whether they form a single household, whether rent is paid by at least one of them, and whether they share basic amenities. Flats and converted buildings can be HMOs as well as houses.

Being an HMO matters even where no licence is needed. Every HMO is covered by management regulations made under section 234 of the Act, and breaking them is one of the offences for which a council can issue a civil penalty. Tenants with a problem in an HMO are told by GOV.UK to report it to the council, which enforces the standards.

Sources: GOV.UK: private renting, houses in multiple occupation · GOV.UK: house in multiple occupation licence · Legislation: Housing Act 2004, section 249A, financial penalties

Do I need an HMO licence?

You must have a licence for a large HMO. GOV.UK describes that as a property rented to five or more people who form more than one household, where some or all of them share a toilet, bathroom or kitchen and at least one pays rent. This is called mandatory licensing because it applies in every council area in England.

The number of storeys no longer matters. Since 1 October 2018 the rule has covered any HMO with five or more people in two or more households, including smaller houses and flats above shops. One exception is set out in the government’s guidance: a purpose-built flat in a block of three or more self-contained flats is outside mandatory licensing, even when the flat itself is shared.

You need a separate licence for each HMO you run. A licence is valid for a maximum of five years and must be renewed before it runs out. A managing agent can apply for you.

Sources: GOV.UK: house in multiple occupation licence · GOV.UK: private renting, houses in multiple occupation · GOV.UK: HMO and residential property licensing reform, guidance for local housing authorities

Additional licensing: when a smaller HMO needs a licence

A property with three or four sharers can still need a licence. Councils have the power to bring smaller HMOs into licensing in all or part of their area. This is called additional licensing, and a scheme can run for up to five years at a time.

The rules differ from one council to the next, and from one street to the next in some towns. GOV.UK’s advice is to check with your council. Some councils also run selective licensing, which covers ordinary rented homes that are not HMOs at all.

Sources: GOV.UK: house in multiple occupation licence · GOV.UK: HMO and residential property licensing reform, guidance for local housing authorities

HMO rules on minimum room sizes

Every licence granted or renewed since 1 October 2018 must include national minimum sizes for rooms used for sleeping. The figures below are floor areas. Under the government’s guidance, any part of a room where the ceiling is lower than 1.5 metres does not count, and babies under one are not counted as occupiers.

These are legal minimums. A council can set higher standards for its own area, so read your council’s HMO standards as well. If a room is already too small when the licence is granted, the council can allow up to 18 months to put it right.

The council must also be told about any room smaller than 4.64 square metres, and that room cannot be used as a bedroom by anyone. A person staying as a visitor of an occupier does not count as someone sleeping in the room. The room size conditions do not apply to an HMO run by a registered charity as a night shelter, or as temporary accommodation for people with drug, alcohol or mental health problems.

Sources: Legislation: Licensing of HMOs (Mandatory Conditions of Licences) (England) Regulations 2018 · GOV.UK: HMO and residential property licensing reform, guidance for local housing authorities

HMO licence conditions

A council will grant a licence where the house is suitable for the number of people living there and the manager, whether that is you or an agent, is ‘fit and proper’. GOV.UK gives the example of having no criminal record and no breaches of landlord law or codes of practice.

The licence then comes with conditions. GOV.UK lists three that apply everywhere: send the council an updated gas safety certificate every year, install and maintain smoke alarms, and provide safety certificates for all electrical appliances when the council asks. Licences issued since October 2018 also require you to follow the council’s scheme for storing and disposing of household waste.

The council can add its own conditions, such as improving facilities, and will tell you when it decides on your application. If you disagree with a condition, or with a refusal, you can appeal to the First-tier Tribunal. A licence does not replace your other duties, including the five-yearly electrical inspection.

Sources: GOV.UK: house in multiple occupation licence · GOV.UK: HMO and residential property licensing reform, guidance for local housing authorities

HMO licence cost

There is no national fee. GOV.UK says each council sets its own, so the cost depends on where the property is and how many people or lettings it has. Many councils take the fee in two parts, one when you apply and one when the licence is granted.

As one example, Newham Council’s published fees on 5 October 2026 were £1,400 for a mandatory HMO licence with up to five lettings, rising with the number of lettings, and £1,250 for an additional licence on a smaller HMO, each for a five-year term. Your own council’s figure may be lower or higher. Check its fees page before you budget.

Sources: GOV.UK: house in multiple occupation licence

What happens if you let an HMO without a licence?

Running a licensable HMO without a licence is a criminal offence under section 72 of the Housing Act 2004. A court can impose a fine with no upper limit. A council can choose to issue a civil penalty instead of prosecuting, and since 1 May 2026 the maximum has been £40,000 for each offence, up from £30,000.

Tenants and councils can also apply to the First-tier Tribunal for a rent repayment order. For an unlicensed HMO the tribunal can now order up to two years of rent to be repaid, and an application can be made up to two years after the offence. Both limits were 12 months before 1 May 2026.

The offence is committed by the person who has control of the HMO or manages it. Changes made by the Renters’ Rights Act 2025 extended it to superior landlords, such as an owner who lets to a company that sublets the rooms, with defences for an owner who had a reasonable excuse. A council that has issued a civil penalty cannot also prosecute for the same conduct.

It is a defence that a licence application had been properly made and was still being considered at the time. If you have found out late that a property needs a licence, apply straight away and take advice on the period before you applied.

Sources: Legislation: Housing Act 2004, section 72, offences in relation to licensing of HMOs · Legislation: Housing Act 2004, section 249A, financial penalties · GOV.UK: rent repayment orders, guidance for tenants

How to apply for an HMO licence

You apply to the council for the area the property is in, usually through the council’s own website. The steps below are a practical order of work. The council’s application form is the final word on what it needs.

Keep the licence, its conditions and its expiry date with your other landlord certificates. From 15 December 2026 landlords will also start registering on the new landlord database, which is a separate duty from licensing.

Tenants can check too. GOV.UK says the council can tell a tenant whether their HMO is licensed, so expect the question and keep a copy of the licence where you can find it.

• Count the occupiers and the households, including any children, and check whether they share a toilet, bathroom or kitchen.
• Ask the council whether the property falls under mandatory licensing, an additional licensing scheme or a selective licensing scheme.
• Measure every room used for sleeping, leaving out floor space where the ceiling is under 1.5 metres.
• Gather the current gas safety record, the electrical reports and the details of your smoke alarms.
• Apply through the council’s website and pay the fee. Keep the confirmation that your application was received.
• When the licence arrives, read every condition and put the renewal date in your diary.

Sources: GOV.UK: house in multiple occupation licence

Common questions