HMO and landlord licensing: the plain-English guide

A landlord must hold a licence for a large HMO - a property let to 5 or more people forming 2 or more separate households who share a kitchen, bathroom or toilet - and many smaller lets need a licence too, depending on the council.
There are three separate licensing schemes in England: mandatory HMO licensing, additional licensing and selective licensing, and which one applies to you depends on your property and your council's own rules, not a single national test.

This guide covers what an HMO licence actually is, who needs one, the three licence types, what it costs, how to apply, and your legal duties as a landlord once you hold one.

This is general information, not legal advice. For anything specific to your property, contact your council's private-sector housing or licensing team, or speak to a licensing solicitor.

What is a house in multiple occupation (HMO)?

An HMO is a property let to at least 3 tenants who form more than 1 household and share toilet, bathroom or kitchen facilities (GOV.UK, checked 23 August 2026).

A "household" generally means people who are related or live as a couple; unrelated sharers - friends, colleagues, individual students - each count as a separate household, even if they all signed one tenancy agreement.

Not every HMO needs a licence - only the ones that meet the mandatory "large HMO" test, or that fall under a licensing scheme your council has chosen to run. See our full do I need an HMO licence? walkthrough if you're not sure where your property sits.

Do you need an HMO licence?

You need a mandatory HMO licence if your property is let to 5 or more people forming 2 or more separate households who share facilities, with at least 1 tenant paying rent (GOV.UK, checked 23 August 2026).

Since 1 October 2018, that test has applied based on how many people live there and how many households they form, not on the number of storeys - an earlier exemption for buildings under three storeys was removed, which brought many more properties into mandatory licensing overnight (GOV.UK guidance for local housing authorities, updated 9 October 2019).

Even if you're under that 5-person threshold, your property can still need a licence if your council runs an additional licensing or selective licensing scheme in your area - both of which are explained below. Work through the full do I need an HMO licence? guide for a step-by-step answer.

What are the three types of licensing?

Mandatory HMO licensing applies automatically to every large HMO in England, while additional and selective licensing are schemes an individual council can choose to introduce in a specific area.

Licence type	What it covers	Who decides it
Mandatory HMO licensing	Large HMOs: 5+ people forming 2+ households sharing facilities, with rent paid.	Applies nationwide - no council discretion over whether the scheme exists.
Additional licensing	Other HMOs in a designated area that fall outside the mandatory test (typically smaller HMOs), where the council believes there's a problem that needs addressing.	Council-decided, area-specific.
Selective licensing	Any privately rented property in a designated area - not just HMOs - introduced for reasons such as poor housing conditions, anti-social behaviour, deprivation, high crime or high migration.	Council-decided, area-specific; a designation can run for up to 5 years (GOV.UK guide for local authorities, updated 16 December 2024).

A council can, and often does, run more than one of these schemes at once in different parts of its area - always check what applies specifically to your property's postcode, not just the general rules.

What does an HMO licence cost?

There's no single national fee - each council sets and publishes its own charge for HMO, additional and selective licences.

How do you apply for an HMO licence?

You apply to your local council, not to a national body - most councils run this online through their own housing licensing portal.

1. Find your council using GOV.UK's postcode tool, and check which licensing schemes (mandatory, additional, selective) apply in your area.
2. Confirm which licence you need - see our do I need an HMO licence? guide if you're not certain.
3. Gather your property and tenancy details - room sizes, number of occupants and households, gas and electrical safety certificates, and management arrangements.
4. Apply and pay the fee - you can apply yourself, or your managing agent can apply on your behalf (GOV.UK, checked 23 August 2026).
5. Expect a property check - your council must carry out a Housing Health and Safety Rating System (HHSRS) risk assessment on the property within 5 years of receiving your application, and you'll need to fix any hazards it identifies.
6. Pass the "fit and proper person" check - the council checks the licence holder or manager against this standard before granting a licence.
7. Receive your licence, valid for a maximum of 5 years, and apply to renew it before it expires.

Exact requirements vary by council, so always check your local authority's HMO licensing page before you apply. Prefer we handle it for you? →

What are your legal responsibilities as an HMO landlord?

Holding a licence is only part of the job - you also carry the same core landlord duties as any private landlord, plus some HMO-specific ones.

Duty	What it means
Gas and electrical safety	Annual gas safety checks and safely maintained electrical equipment throughout the property.
Smoke and carbon monoxide alarms	Fitted and tested, as for any rented property.
Minimum room sizes	Mandatory licence conditions set minimum bedroom sizes of 6.51m² for one person aged 10 or over, and 10.22m² for two people aged 10 or over sharing (GOV.UK guidance for local housing authorities, updated 9 October 2019).
Waste disposal	Suitable arrangements for storing and disposing of household waste.
Fit and proper manager	The person managing the HMO must meet the council's "fit and proper person" standard.
Notify the council of changes	Tell your council about relevant changes, such as planning alterations, tenant-made modifications, or a change in who's living there.
Deposit protection and EPC	The usual landlord duties still apply on top of any HMO-specific ones - protect deposits in a government-approved scheme and provide an Energy Performance Certificate.

These are the core duties GOV.UK highlights; full HMO management standards go further and vary by property type, so always check your specific licence conditions.

What happens if you rent out an HMO without the licence you need?

You could face an unlimited fine for renting out an unlicensed HMO (GOV.UK, checked 23 August 2026).

Tenants also have their own remedy: if you've been renting out an unlicensed large HMO, a tenant may be able to reclaim some of their rent through the housing tribunal.

Because the penalties sit with the landlord regardless of intent, it's worth checking your licensing status before you let, not after a council or tenant raises it.

HMO licensing by council

Fees, additional licensing and selective licensing designations are all set locally - a council's own page is always the definitive source. We've built sourced, council-specific guides for the biggest HMO markets and the areas where additional or selective licensing schemes mean more landlords have to act:

Council	What's notable
Manchester	Mandatory HMO fee from £1,321; no additional licensing, but 2 live selective licensing schemes
Birmingham	Citywide additional licensing, all 69 wards, £755 (2023-2028)
Leeds	£975 standard fee (£825 for Leeds Rental Standard members), mandatory licensing only
Liverpool	Fee tiered by units from £1,328; citywide selective licensing to 2027
Nottingham	Citywide additional licensing since Jan 2024, from £1,210 (accredited) to £2,180
Bristol	Citywide additional licensing since Aug 2024, £1,861 new / £1,470 renewal
Newham	Additional and selective licensing cover almost the whole borough
Brent	New additional licensing scheme from 2 Feb 2026; selective licensing covers all but 1 ward
Ealing	Additional licensing covers all 24 wards; selective licensing in 15 named wards
Haringey	£1,411.68 HMO fee; additional licensing all 21 wards; selective licensing in 14 Tottenham-area wards
Oxford	New additional licensing from 25 June 2026; extensive Article 4 planning coverage
Cambridge	£1,133 fee, reduced for early renewal; additional licensing since 2019
Brighton & Hove	Citywide additional AND citywide selective licensing - near-total coverage
Portsmouth	Two-part fee from £943, tiered by bedroom count and licence length
Southampton	New additional licensing in 9 wards holding 86% of known HMOs; £953 vs £1,618 late fee
Sheffield	Mandatory fee from £1,185, tiered by bedroom count; mandatory licensing only
Leicester	Selective licensing (£1,290) in 6 areas also captures small 2-4 person HMOs
Coventry	One fee table covers mandatory and additional HMOs, £944-£2,241 by category
Salford	Mandatory from £970; 2 selective licensing areas, a 3rd starting Jan 2026
Tower Hamlets	Additional licensing all 20 wards; selective licensing set to expire Sept 2026
Waltham Forest	Additional licensing borough-wide; selective licensing in all but 2 wards
Barking & Dagenham	New additional (Jan 2025) and selective (Apr 2025) schemes borough-wide
Croydon	New additional and selective schemes approved, starting 1 Sept 2026
Enfield	Additional licensing since Sept 2025 (£1,450); selective licensing from Sept 2026
Redbridge	Additional licensing borough-wide since 2023; selective licensing in 2 wards
Bradford	Mandatory fee from £1,625, tiered by occupants; paper-based application
Bournemouth, Christchurch & Poole	Mandatory fee £1,511 new / £1,391.50 renewal; mandatory licensing only
Luton	New schemes went live 2026 after landlords lost a legal challenge
Reading	New additional licensing from March 2026; selective licensing proposed
Hull	Mandatory fee from £225 + bedroom fee (e.g. £910 for 5 beds)

We're covering 30 of England's 309 HMO licensing authorities so far, and adding more council pages regularly - if yours isn't listed yet, use GOV.UK's postcode tool to go straight to your council's own page.

Frequently asked questions

Is a 4-person shared house automatically an HMO that needs a licence?

It's likely an HMO if the 4 tenants form more than 1 household and share facilities, but it won't need a mandatory licence unless it reaches 5 or more people - though it could still need one under an additional licensing scheme, so check with your council.

Does one HMO licence cover more than one property?

No - a licence applies to a specific property, so each qualifying HMO you own or manage needs its own licence.

How long does an HMO licence last?

Up to 5 years, after which you need to apply to renew it before it expires - see our HMO licence cost guide for how the duration affects value for money.

What's the difference between additional and selective licensing?

Additional licensing covers HMOs that fall outside the mandatory rules (typically smaller ones) in a designated area, while selective licensing covers any privately rented property - HMO or not - in a designated area, usually where a council has identified problems like poor conditions or anti-social behaviour.

Can my letting or managing agent apply for the licence on my behalf?

Yes - GOV.UK confirms you should normally apply yourself, but if you use a managing agent, they can apply for you.

apply for licence is an independent guide and is not affiliated with, endorsed by, or connected to GOV.UK, any local council, or any government body. This page is general information, not legal advice - for anything specific to your property, including licence applications, refusals or enforcement action, contact your council's private-sector housing team or a licensing solicitor.