Do I need a licence for a four-person HMO?

Not a mandatory licence, because the threshold is 5 or more occupiers. Your council may still require one under an additional or selective licensing scheme. Since December 2024, councils can make schemes of any size without government confirmation, so check the address.

How much does an HMO licence cost?

Each council sets and publishes its own fee, so there is no national figure. Check your council's current fee schedule before you budget, and remember that a licence lasts no more than 5 years, so the cost comes round again at renewal.

Who should be the licence holder?

Usually the owner or the person who manages the house, and the council must be satisfied they are fit and proper. Since 1 May 2026, superior landlords can also commit licensing offences, so an owner stays exposed even when someone else holds the licence.

What happens if my HMO is unlicensed?

The council can prosecute or impose a civil penalty of up to £40,000. Tenants or the council can apply for a rent repayment order covering up to 2 years' rent, up to 2 years after the offence. Apply for a licence as soon as you can.

Does an HMO licence give me planning permission?

No. Licensing and planning are separate regimes. A licence deals with the standard of the accommodation and the fitness of the holder. Planning deals with the use of the building. You may need both, and having one does not mean you have the other.

HMO licensing explained: mandatory, additional, selective

What is an HMO licence?

An HMO licence is a permission from the local council to let a house in multiple occupation that falls within a licensing scheme. It names a licence holder, sets the maximum number of people and households who may live there, and comes with conditions the holder must keep to. The council must be satisfied that the proposed licence holder is a fit and proper person.

There are three types of licensing in England:

Mandatory licensing, which applies nationally to larger HMOs.
Additional licensing, which a council can introduce to bring smaller HMOs into licensing in all or part of its area.
Selective licensing, which a council can introduce to license other privately rented homes in a designated area, including homes that are not HMOs.

Letting a property that needs a licence without one is an offence. Licensing is also separate from planning: a licence does not give planning permission, and planning permission does not give you a licence. GOV.UK has a short overview on its HMO licence page.

Which HMOs need a mandatory licence?

An HMO needs a mandatory licence if it has 5 or more occupiers forming 2 or more households and it meets the standard test, the self-contained flat test or the converted building test. The threshold is set by the Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 and was not changed in 2025 or 2026.

A few points to note:

Purpose-built blocks of 3 or more self-contained flats are excluded from the flat test for mandatory licensing.
Section 257 HMOs, which are certain converted blocks of flats, fall outside the mandatory licensing description.
The test counts occupiers, meaning people living there as their only or main home, not bedrooms or tenancy agreements.

If your house is near the threshold, plan for the highest number of people you expect to house, not the number on the first day. A house that grows from 4 occupiers to 5 needs a mandatory licence from that point.

What are additional and selective licensing schemes?

Councils can go beyond mandatory licensing in two ways.

Additional licensing brings smaller HMOs, such as houses with 3 or 4 sharers, into licensing in the areas the council designates.

Selective licensing requires other privately rented homes in a designated area to be licensed, including homes that are not HMOs.

What changed with the General Approval 2024?

From 23 December 2024, a general approval issued by the government lets councils make additional and selective licensing schemes of any size without the Secretary of State confirming them. This ended the old 20% threshold, based on a share of the council's area or private rented stock, above which schemes needed government confirmation. Councils must still meet the statutory tests and consult before making a scheme.

Midlands councils are using these powers. Schemes are made for set periods, so the position for a street can change. Check the current position before you buy, before you change the number of occupiers and before any licence renewal.

How do I find out if my property needs a licence?

Start with the address, not the house type. The answer depends on the number of occupiers and households, how the building is laid out and which schemes your council has in force.

Count the people and the households who will live there.
Check your council's website for additional or selective licensing designations and their maps.
If you are buying a house that is already let, ask the seller and the council whether it is licensed and on what terms.
Read the council's HMO amenity standards, as these shape the licence conditions.

Our HMO licensing checker gives a quick first answer for an address. Treat it as a starting point and confirm the position with the council, because schemes change.

What does an HMO licence application involve?

Each council sets its own application form and fee, so the detail varies. Applications commonly ask for:

details of the proposed licence holder and the person who will manage the house;
details of the owner and anyone else with an interest in the property, such as a mortgage lender;
a floor plan showing each room, its use and its floor area;
the number of occupiers and households, and the kitchens, bathrooms and toilets they share;
current safety documents, typically a gas safety record, an electrical installation condition report (EICR), and fire alarm and emergency lighting certificates where these systems are fitted;
a fire risk assessment, where the council asks for one;
the application fee, which the council sets.

The council may inspect the house before deciding, and may come back with questions or ask for works before the licence is granted. Our HMO licence application service prepares the forms, the measured floor plans and the supporting documents, and deals with the council's questions.

What is the fit and proper person test?

Before granting a licence, the council must be satisfied that the proposed licence holder is fit and proper. Under section 66 of the Housing Act 2004, the council looks at any evidence that the person has:

committed offences involving fraud or other dishonesty, violence, drugs, or certain sexual offences;
practised unlawful discrimination;
broken housing law or landlord and tenant law;
broken an approved code of practice.

Anyone subject to a banning order is automatically treated as not fit and proper. Councils usually ask applicants to declare relevant matters on the form, and some ask for a basic criminal record check. Councils will also want to know who will manage the house day to day.

What conditions come with an HMO licence?

Every HMO licence carries mandatory conditions set by Schedule 4 to the Housing Act 2004, and the council can add its own.

Mandatory conditions include:

the national minimum bedroom sizes, in force since 1 October 2018: 6.51 m² for one person aged over 10, 10.22 m² for two people aged over 10 and 4.64 m² for one child under 10;
a ban on using any room under 4.64 m² for sleeping, and a duty to tell the council about any such room;
the smoke alarm and carbon monoxide alarm duties, which apply to licensed HMOs through the licence conditions.

Council conditions commonly cover the maximum number of occupiers for each room, kitchen and bathroom provision under local amenity standards, fire safety works, waste arrangements and management standards. Some conditions require works to be done by a set date. Where a bedroom breaches the size conditions, the council can allow up to 18 months to put it right.

Breaching a licence condition is an offence, and it can lead to a civil penalty.

How long does an HMO licence last?

An HMO licence can last for no more than 5 years, and councils can grant a shorter licence. When a licence ends, you need to apply again if the house still falls within a licensing scheme.

Put the expiry date in your diary and start the renewal early, because the council may want updated certificates, plans and fees. Check also whether the scheme that covered the house has ended or been replaced, as additional and selective schemes run for set periods.

What are the penalties for an unlicensed HMO?

Operating a licensable HMO without a licence, or breaching licence conditions, is an offence under section 72 of the Housing Act 2004. The penalties changed on 1 May 2026.

Civil penalties

Councils can prosecute or impose a civil penalty. The maximum civil penalty is now £40,000, up from £30,000 before 1 May 2026. The same maximum applies to offences under section 95 (selective licensing), section 234 (the HMO management regulations), section 30 (improvement notices) and section 139(7) (overcrowding notices).

Who can be liable

From 1 May 2026, the HMO and selective licensing offences cover anyone who controls or manages the property and any superior landlord further up the chain, such as an owner who has let the house to a rent-to-rent company. A superior landlord has a defence if they did not know, and had no reason to know, that the property was an HMO, or if they took all reasonably practicable steps.

Rent repayment orders

Tenants and councils can apply for a rent repayment order (RRO).
The time limit for applying is now 2 years after the offence (it was 12 months).
An order can cover up to 2 years' rent (it was 12 months).
Orders can be made against superior landlords, and against company directors and officers where the offence was committed with their consent or connivance or, for specified offences, through their neglect.
Repeat offenders must normally pay the maximum.

Where an offence runs across 1 May 2026, the old rules apply to the period before that date and the new rules to the period after.

Sources

This guide explains the rules in England as we understood them in October 2026. It is general information, not legal or financial advice. Check with your council and take professional advice for your own situation.

HMO licensing explained