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Houses in multiple occupation (HMOs)

HMOs can be an excellent investment opportunity but may also need to be regulated, licensed and inspected for the safety of the occupants.  Below is a definition of what may be classed as an HMO but guidance should be taken from your local authority.  For further guidance just ask a member of the Lauristons Lettings Team.

A House in Multiple Occupation (HMO) is classed as a property where three or more people live, who make up two or more households and share basic facilities such as a kitchen or bathroom. A household is either a single person or members of the same family. Professional sharers and students are the most common example of tenants where more than one household live in the same property.

A guide to HMOs

What is a HMO?


What is meant by the term 'Household'?


  • Step-parents and step-children and half-relatives
  • Foster parents and foster children



HMO licencing

What licensing is needed for a HMO?

There are three types of HMO licensing

Mandatory licensing of large HMOs

Additional licensing

Selective licensing


A licence will normally be granted where...

  • Annual gas safety checks are up-to-date
  • The property is not overcrowded
  • There are adequate cooking and washing facilities
  • Communal and shared areas are kept clean and in good repair
  • There are appropriate refuse storage and disposal facilities


How can I check if a property needs to be licenced?


Can a landlord evict a tenant to avoid licensing?


Licensing requirements


  • The suitability of the HMO for the number of occupiers
  • The general suitability of existing management arrangements of the property





What happens if a landlord doesn't apply for a licence?

It is a criminal offence to operate a HMO that should be licenced but isn't and if convicted, the fines for non-compliance can easily run into the thousands.


Landlords may have to pay back to the council any housing benefit they have received during the period of the offence, up to a maximum 12 months. The tenancy itself will not be affected if the landlord has failed to apply for or obtain an HMO licence, although the council may take over the management of the property as another method of enforcement.


No, a tenant cannot withhold rent.  Under the terms of an AST there is never an valid reason for a tenant withholding rent, instead the lack of a license needs addressing.


If a landlord or managing agent allows a HMO to be occupied by more people/households than it is licenced for then unless there is a reasonable excuse they are committing a criminal offence and could be fined up to £20,000. If the landlord/managing agent breach the licence conditions then they are committing a criminal offence and could be fined up to £5,000 per breach. If the breach is serious or persistent the licence may be entirely revoked. If the council revokes a licence it must take over the HMO management.

What happens if the council refuses to grant a licence?


What happens if the conditions in a HMO are poor?




The HMO must be occupied by more than one household:

  • As their only or main residence; or
  • As a refuge by persons escaping domestic refuge; or
  • During term time students; or
  • For some other purpose that is described in regulations.

In all cases:

  • Rents are payable or other considerations are provided.

Under the act, a household comprises:

  • A single person; or


  • Buildings occupied by religious communities; or
  • Buildings occupied entirely by freeholders or long leaseholders;

Definition of an HMO requiring a licence:


  • Three or more storeys, which are:

How do I know if my property needs a license?

Mandatory Licensing will apply to you if you have five or more occupants in a property that is three or more storeys high, as long as the occupants are not just made up of one household.

However, licensing may also apply to you even if the Mandatory Licensing does not, depending on whether Additional or Selective Licensing is in place.

The only way that you can check if your property needs a licence is to look at the specific licensing rules in place for your borough. 

Local Councils in the areas we cover can be contacted below

To get further information on HMOs please see the Department of Communities and Local Governments guidance here.