Glossary · UK
What is HMO Licence?
A mandatory licence required from the local council to let a House in Multiple Occupation to five or more unrelated tenants forming more than one household, with additional discretionary licensing schemes covering smaller HMOs in some areas.
Full Definition
A House in Multiple Occupation (HMO) is a property let to three or more tenants who are not from a single household but share facilities such as a bathroom or kitchen -- typically a shared house or flat let room-by-room to unrelated individuals or couples. Mandatory HMO licensing, set nationally, applies to any HMO occupied by five or more tenants forming two or more separate households, regardless of how many storeys the property has, following reforms in 2018 that removed the previous requirement for the property to be at least three storeys tall. To obtain a licence, the landlord must satisfy the council that the property meets minimum room size standards (a legal minimum floor area applies per occupant, with rooms below 4.64 square metres generally unusable as sleeping accommodation for an adult), has adequate fire safety measures such as mains-wired smoke alarms and, where required, fire doors, and that the landlord or managing agent is a "fit and proper person" with no relevant criminal convictions or history of breaching housing law. Licences are typically granted for up to five years and must be renewed, with the council able to attach specific conditions, such as a maximum number of occupants or requirements for annual gas safety and electrical safety checks. Beyond mandatory licensing, many local councils operate additional discretionary licensing schemes -- either "additional licensing," which extends HMO licensing requirements to smaller HMOs with three or four tenants in the council's area, or "selective licensing," which can require a licence for any rented property (not just HMOs) in a designated area with particular issues such as low housing demand or high levels of anti-social behaviour. Letting a licensable HMO without the correct licence is a criminal offence, and can result in an unlimited fine, a rent repayment order requiring the landlord to repay up to 12 months of rent to the tenants or the council, and difficulty serving a valid Section 21 no-fault eviction notice, making licence compliance a significant practical and financial consideration for anyone letting shared accommodation.