HMO Licensing in the UK: Complete Council-by-Council Guide

1. What Is an HMO (Legal Definition)?

Under section 254 of the Housing Act 2004, a property is a House in Multiple Occupation (HMO) if it is occupied by three or more people who form two or more households and share a basic amenity — a kitchen, bathroom, or toilet. The definition is deliberately broad and captures bedsit blocks, shared student houses, shared professional houses, and certain lodging arrangements.

The key phrase is "two or more households". Two people who are members of the same family — defined broadly to include partners, relatives, and those living together as if a family — count as one household. Three unrelated people sharing a house each form separate households and therefore the property is an HMO. A property is also an HMO if it is a converted building where the whole or part is occupied by persons who do not form a single household.

Statutory reference: Housing Act 2004, sections 254–259

2. The Three HMO Licence Types in England

England's HMO licensing framework has three distinct tiers:

1. Mandatory licensing — applies UK-wide to the largest HMOs (5+ occupants)
2. Additional licensing — council-designated schemes extending coverage to smaller HMOs
3. Selective licensing — council-designated schemes covering all private rentals in a defined area

A property can be subject to more than one scheme simultaneously. In Newham, for example, virtually every privately rented property — not just HMOs — requires a licence under the selective licensing scheme, while larger HMOs also fall under mandatory licensing.

3. Mandatory HMO Licensing

Mandatory HMO licensing was introduced by the Housing Act 2004 (section 55) and extended to smaller HMOs in 2018. Since 1 October 2018, mandatory licensing applies to all HMOs in England that are:

• Occupied by 5 or more people forming 2 or more households, and
• Where residents share or lack exclusive use of a basic amenity (kitchen, bathroom, toilet)

Prior to 2018, mandatory licensing only applied to HMOs of 3 storeys or more. The 2018 change substantially increased the number of properties requiring mandatory licences — adding an estimated 160,000 HMOs to the mandatory regime.

The licence must be held by the property owner or a management company. Licences last up to 5 years. The council sets the fee, which is typically split between an application fee (non-refundable) and a grant fee (paid on licence approval).

Statutory reference: Housing Act 2004, section 55; Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018

4. Additional HMO Licensing

Section 56 of the Housing Act 2004 gives councils the power to designate additional licensing schemes covering HMOs that fall below the mandatory threshold. Councils can designate the whole of their area or specific parts, and can cover specific descriptions of HMOs. Schemes must be approved by the Secretary of State (for schemes covering more than 20% of the private rented sector in an area) and last a maximum of 5 years before requiring renewal.

Additional licensing typically captures HMOs with 3 or 4 occupants — particularly shared houses with fewer than 5 residents who wouldn't otherwise need a licence. The majority of London boroughs operate additional licensing schemes, as do many university cities (Nottingham, Brighton, Oxford, Bristol) and high-demand rental markets.

Statutory reference: Housing Act 2004, section 56

5. Selective Licensing

Part 3 of the Housing Act 2004 gives councils the power to designate selective licensing areas, requiring all privately rented properties in the area to be licensed — not just HMOs. Councils can designate selective licensing areas where low housing demand, significant anti-social behaviour, high migration, significant deprivation, or poor property conditions are present.

Selective licensing is increasingly used by councils alongside additional HMO licensing, creating layered licensing requirements in some areas. In Liverpool, a citywide selective licensing scheme (2022–2027) means every privately rented property in the city needs a licence, regardless of whether it is an HMO.

Statutory reference: Housing Act 2004, Part 3 (sections 80–100)

6. Article 4 Directions Explained

An Article 4 direction is a planning instrument that removes a permitted development right — the right to carry out certain changes of use or development without planning permission. For HMOs, the most consequential permitted development right is the C3-to-C4 conversion right: the right to convert a single-family dwelling (use class C3) into a small HMO of 3–6 unrelated occupants (use class C4) without planning consent.

Where an Article 4 direction removes the C3-to-C4 right, a landlord converting a family house into a shared house must:

1. Submit a full planning application to change use from C3 to C4
2. Provide planning drawings (existing and proposed floor plans and elevations)
3. Separately obtain an HMO licence with a licensing floor plan

Article 4 directions do not apply retrospectively to HMOs that were already in use as C4 before the direction came into effect. However, any new conversions after the designation date require consent.

7. Minimum Room Sizes & Amenity Standards

The Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018 set mandatory minimum room sizes for all licensed HMOs in England:

Rooms below 4.64 m² cannot be used as sleeping accommodation at all. The floor area is calculated as the usable area — excluding any area where the ceiling height is below 1.5 metres (typically under-eaves space in converted loft rooms). Some councils apply tighter local standards on top of the national minimum.

On floor plans, usable room area must be shown separately from total room area where there is significant under-eaves or low-height space. VizCraft annotates usable area on all HMO plans.

Statutory reference: Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018 (SI 2018/221)

8. Fire Safety Requirements

HMO licence conditions require landlords to ensure the property meets fire safety standards under the Regulatory Reform (Fire Safety) Order 2005 (RRO). For HMOs, the practical requirements are:

• Fire detection: Interlinked smoke alarms on every floor, heat detector in kitchen, to BS 5839-6 Grade D minimum
• Fire doors: FD30 (30-minute) or FD60 (60-minute) fire-resisting doors to bedrooms and any habitable rooms off escape routes, with BS EN 1154-compliant self-closing devices
• Escape routes: Maintained clear and unobstructed escape routes, adequate width stairs, emergency lighting in larger HMOs
• Fire risk assessment: Written fire risk assessment, reviewed annually and after any significant change

Floor plans for HMO licensing applications must show fire door positions (marked FD30 or FD60), self-closer symbols, smoke and heat alarm locations, and the escape route. Councils cross-reference the floor plan against their fire safety checklist.

Statutory reference: Regulatory Reform (Fire Safety) Order 2005 (SI 2005/1541); Housing Act 2004, Schedule 4

9. Council-by-Council Reference Table (26 Councils)

The table below shows the licensing position for 26 major UK councils as of June 2026. Schemes are typically renewed every 5 years — always verify with the specific council before relying on this data for a licensing application.

10. Step-by-Step Application Process

1. Determine which licensing scheme applies to your property (mandatory, additional, selective, or a combination).
2. Check your council's specific checklist — most publish an amenity standard and floor plan requirements document.
3. Obtain the required supporting documents: gas safety certificate, EICR, PAT certificates, fire risk assessment, EPC.
4. Commission a compliant HMO floor plan showing all required room areas, fire safety provisions and occupancy.
5. Complete the council's application form and fit-and-proper person declaration.
6. Pay the licence fee (typically in two parts: application fee + grant fee).
7. Respond to any queries from the council and provide revised plans if requested (up to 2 free revisions from VizCraft).

Most councils process applications within 8–12 weeks. Some councils will issue an interim licence within 2 weeks while the full application is assessed.

11. What Needs to Be on the HMO Floor Plan

A council-compliant HMO floor plan must include all of the following (additional requirements may apply in specific councils — always check the local checklist):

• Total floor area of the property
• Individual room areas with usable floor area per bedroom (excluding under-eaves space below 1.5m head-height)
• Kitchen location, size, and provision (worktop length, appliances, storage)
• Bathroom and WC locations, fixtures, and amenity ratios (bathrooms per occupant)
• Fire escape routes and stair widths
• Fire door positions (FD30 or FD60 as required) with self-closer symbols
• Smoke and heat alarm positions (to BS 5839-6 Grade D standard)
• Intended occupancy of each room
• North arrow, scale bar, and drawing reference number

Some councils (notably Tower Hamlets, Southwark, and Newham) require additional detail on door types, lobby protection, and amenity ratios (kitchen facilities per occupant). VizCraft checks the council's specific requirements before drafting every plan.

12. Costs, Timelines & Renewal Cycles

Licence fees

HMO licence fees are set by each council and vary significantly. Typical ranges (England, 2026) are £450–£1,400 for a 5-year licence, usually split into an application fee (paid upfront, non-refundable) and a grant fee (paid on approval). London boroughs typically charge towards the upper end of this range.

Processing times

Most councils process applications within 8–12 weeks from receipt of a complete application. Incomplete applications — most commonly missing the floor plan or fire risk assessment — are returned and reset the clock.

Renewal

Licences last up to 5 years. Councils do not automatically renew — landlords must apply for renewal before the licence expires. Operating after expiry without a new licence is a criminal offence. We recommend commissioning an updated floor plan at renewal to reflect any changes in room use or occupancy.

13. Scotland, Wales & Northern Ireland

Scotland

Scotland has its own mandatory HMO licensing regime under the Housing (Scotland) Act 2006, administered by local authorities. All HMOs in Scotland with 3 or more occupants from 2 or more households require a licence. Application is made to the local council, which sets its own fees and conditions. Article 4 directions do not apply in Scotland — use class changes are governed by Scottish planning law.

Wales

Wales requires HMO licences under the Housing (Wales) Act 2014 and the Renting Homes (Wales) Act 2016. Landlords must also be registered and (if using a letting agent) licensed under the Rent Smart Wales scheme. The mandatory HMO threshold is broadly aligned with England (5+ occupants), but local authorities can designate additional licensing areas.

Northern Ireland

Northern Ireland does not currently operate a mandatory HMO licensing regime equivalent to England's. HMOs in NI are regulated primarily through planning controls — changing a property to an HMO use class (Class HMO) typically requires planning permission, and councils maintain HMO registers. The Houses in Multiple Occupation Act (Northern Ireland) 2016 created the planning framework but does not impose a separate annual licensing fee structure.

14. Penalties for Unlicensed HMOs

Operating a licensable HMO without a licence is a criminal offence. The consequences can include:

• Unlimited fine — the upper limit was removed in 2016; magistrates can impose any fine they consider appropriate given the profitability of the offence
• Rent Repayment Order (RRO) — tenants (or the council) can apply to the First-tier Tribunal for repayment of up to 12 months' rent
• Banning order — the council can apply for an order banning a landlord or agent from letting or managing property
• National database entry — banning orders result in entry on the national database of rogue landlords and property agents
• Management order — the council can take over management of the property under a Management Order
• Civil penalties — some breaches (e.g., failure to comply with licence conditions) attract fixed civil penalties of up to £30,000 per breach

Local authorities are increasingly proactive in enforcement. Several councils run data-matching exercises combining council tax records, planning applications, and HMO registers to identify unlicensed properties.

15. Frequently Asked Questions