HMO licensing in 2026: rules, fees and council variation

A House in Multiple Occupation is, broadly, a property let to three or more people who form more than one household and share at least one facility such as a kitchen, bathroom or toilet. A household is a single person, a couple or a family.

The classic HMO is a shared house let to four young professionals, each on their own room contract. A bedsit block, a converted office let room by room, and a property let to a group of unrelated students are all HMOs.

Since 2018, any HMO let to five or more occupants forming two or more households is subject to mandatory licensing across all of England and Wales. The licence is issued by the local council, lasts up to five years, and costs anywhere from £500 to £1,500 depending on the authority.

Mandatory licence conditions typically cover fire safety, room sizes (minimum 6.51 m² for a single, 10.22 m² for a double), gas and electrical safety records, manager fitness, and the number and condition of facilities such as kitchens and bathrooms.

On top of mandatory, councils can designate additional licensing for smaller HMOs (typically three or four occupants) and selective licensing for any private rented property regardless of HMO status. These schemes are area-based, last five years, and have to be approved by the Secretary of State if they cover more than 20 per cent of the council's geography or private rented sector.

London boroughs such as Newham, Croydon, Brent and Waltham Forest operate borough-wide selective licensing. Others such as Camden and Hackney operate large additional licensing zones for smaller HMOs. Fees and conditions vary widely.

Applications are submitted to the local council's housing department, typically online. You need to provide proof of identity, ownership, a fit-and-proper-person declaration, copies of current gas safety, electrical safety and energy performance certificates, fire risk assessment (where required), floor plan with room measurements, and an inventory of facilities.

Most councils issue a draft licence within three to six months, with site inspection along the way. Operating an HMO without a required licence is a criminal offence carrying an unlimited fine or a civil penalty up to £30,000 per breach, plus the risk of a rent repayment order.

A licence is not a one-off. Conditions usually require the landlord or appointed manager to keep current safety certificates, respond to repair requests within set timescales, control anti-social behaviour, and notify the council of any change in circumstances such as a change of manager.

Failure to comply with licence conditions, even after a licence has been issued, can result in a civil penalty or revocation. Treat the licence as a living document.