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Key Changes at a Glance
- Mandatory HMO licensing still applies to 5+ occupants from 2+ households sharing facilities
- Over 70 councils now operate additional licensing schemes covering smaller HMOs (3–4 occupants)
- Minimum bedroom sizes remain enforced: 6.51m² (single), 10.22m² (double), 4.64m² (under-10s)
- Over 60 council areas have Article 4 directions restricting new HMO conversions
- Fire safety requirements continue to tighten following Grenfell-related regulatory updates
- Non-compliance risks: unlimited fines, criminal record, and Rent Repayment Orders up to 12 months' rent
Mandatory HMO Licensing Requirements
Mandatory HMO licensing has been in place in England since 2006, with the rules significantly expanded in October 2018 to remove the previous three-storey minimum. Since 2018, the mandatory licensing threshold has been set purely by occupancy — not the number of storeys. For a deeper dive into licensing requirements, see our complete HMO licensing guide.
Who needs a mandatory HMO licence in England?
You need a mandatory HMO licence if your property is occupied by:
Qualifying Criteria
- 5 or more people living in the property
- Forming 2 or more households (i.e. not all from the same family)
- Who share facilities such as a kitchen or bathroom
Key Points
- The 3-storey minimum was removed in October 2018
- Licence term is typically 5 years
- Each property requires its own separate licence
- Scotland, Wales and Northern Ireland have different thresholds
- Licence is non-transferable if property is sold
When applying for a mandatory HMO licence, the local authority will assess the property's suitability, the proposed management arrangements, and whether the proposed licence holder is a "fit and proper person." Licence conditions typically require compliance with fire safety, gas and electrical safety, waste management, and provision of adequate facilities for the number of occupants.
Additional Licensing Schemes
Under Section 56 of the Housing Act 2004, local authorities can designate additional licensing schemes extending HMO licence requirements to properties that fall below the mandatory licensing threshold. This is typically used to cover HMOs occupied by three or four people.
Over 70 councils now operate additional licensing schemes
The number of councils with additional licensing has grown significantly since 2018. Some operate city-wide schemes; others target specific wards. Key cities with active schemes include Nottingham, Bristol, Brighton & Hove, Newham, Southwark, Lewisham, Liverpool, Sheffield, and Oxford.
The key distinction between mandatory and additional licensing is that additional schemes require formal government approval and are subject to consultation requirements. Schemes typically run for five years before needing renewal. Landlords must check whether their property falls within a designated additional licensing area — the burden of knowledge rests with the landlord.
Some councils also operate selective licensing schemes, which extend licensing requirements beyond HMOs to all private rented properties in a designated area. Selective licensing is not HMO-specific but can affect landlords who do not consider themselves to be running an HMO.
Minimum Room Sizes
National minimum bedroom sizes for HMOs were introduced in October 2018 via the Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018. These minimums remain in force and are a condition of every mandatory HMO licence.
| Room Type | Minimum Floor Area |
|---|---|
| Single adult bedroom | 6.51m² |
| Double / shared bedroom | 10.22m² |
| Children under 10 | 4.64m² |
Where a room fails to meet the minimum size, local authorities must impose a licence condition prohibiting its use as sleeping accommodation, or requiring it to be used only by a child under 10. Landlords are required to notify the local authority of any room below 4.64m² within two months of obtaining their licence.
Local authorities can set higher minimums
Article 4 Directions Update
An Article 4 direction removes permitted development rights from a specified area. For HMO landlords, the most relevant Article 4 directions remove the right to convert a family dwelling (Use Class C3) into an HMO (Use Class C4) without obtaining full planning permission.
Current Article 4 Coverage
- Over 60 council areas now have Article 4 restrictions
- Many cover city-centre wards or areas near universities
- New Article 4 directions continue to be introduced
- Article 4 applies to conversions of C3 to C4 (up to 6 occupants)
- Larger HMOs (7+ occupants, sui generis) always need planning permission
Key Cities with Article 4
- ›Oxford (whole city)
- ›Bristol (multiple wards)
- ›Nottingham (whole city)
- ›Leeds (multiple wards near universities)
- ›Manchester (Fallowfield, Withington, Rusholme)
- ›Brighton & Hove (multiple wards)
- ›York (whole city)
- ›Cambridge (most wards)
Where Article 4 is in place, converting a family home to an HMO for up to six people requires a planning application for change of use from C3 to C4. This adds cost and time to HMO conversion projects and creates uncertainty, as planning permission can be refused. Always check Article 4 status before purchasing a property intended for HMO conversion. Our HMO planning permission guide covers the full application process.
Fire Safety and Compliance Updates
Fire safety requirements in HMOs are non-negotiable
Fire safety standards in HMOs have continued to evolve following post-Grenfell regulatory reform. For HMO landlords, the key requirements typically include:
Detection and Alarms
- Interlinked fire alarm and detection system (Grade D minimum for most HMOs)
- Smoke alarms in each bedroom and living area
- Heat detectors in kitchens
- Carbon monoxide detectors where solid fuel or gas appliances present
- Emergency lighting in communal areas for larger HMOs
Physical Safety Measures
- Fire doors with self-closing mechanisms to all bedrooms and kitchens
- Intumescent strips and cold smoke seals on all fire doors
- Thumb-turn locks on final exit doors (no key needed to escape)
- Fire extinguisher and fire blanket in kitchen
- Clear escape routes free from obstructions
Requirements vary based on the size, layout, and occupancy of the HMO. Local fire authorities and council housing officers can carry out inspections. Landlords should commission a fire risk assessment by a competent person and retain documentation of compliance.
What Happens If You Don't Have a Licence?
Operating a licensable HMO without a licence is a serious offence. The consequences have become significantly more severe in recent years and landlords should not underestimate the risks.
Criminal Prosecution
Operating an unlicensed HMO is a criminal offence. Conviction results in an unlimited fine via the magistrates' court and — critically — a criminal record.
Civil Penalty Up to £30,000
As an alternative to prosecution, the local authority can issue a civil penalty notice of up to £30,000 per offence. Multiple offences can be charged simultaneously.
Rent Repayment Orders
Tenants — or the local authority — can apply to the First-tier Tribunal for a Rent Repayment Order (RRO) covering up to 12 months' rent paid during the unlicensed period.
Banning orders and database listing
How to Check Your Licensing Requirements
With mandatory licensing, additional licensing, and selective licensing operating across hundreds of local authorities in England — each with different criteria and boundaries — it is essential for landlords to verify the exact requirements for each property they own or intend to purchase.
Contact your local authority directly
Every council in England operates its own housing licensing team. Search for '[your council name] HMO licence' to find their dedicated page. Most councils provide clear guidance on which schemes apply in your area.
Check the council's licensing map
Many councils with additional licensing publish interactive maps showing which streets or wards fall within a designated area. Check whether your property is within the boundary.
Apply before you complete
Most HMO mortgage lenders require a valid HMO licence (or evidence of a licence application) before releasing funds. Factor licence lead times — which can be 3–6 months in busy councils — into your project timeline.
Set reminders for renewal
Licences typically run for five years. Set calendar reminders well in advance of expiry — operating with an expired licence carries the same penalties as operating without one.
Frequently Asked Questions
Do I need an HMO licence for a 4-person property?
How much does an HMO licence cost?
What are the minimum room sizes for an HMO?
What is the penalty for operating an unlicensed HMO?
Licensing requirements vary by local authority and are subject to change. Always verify current requirements with your council before purchasing. Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Think carefully before securing other debts against your home.
Need an HMO mortgage for a licensed property?
We specialise exclusively in HMO finance. Whether you're purchasing, remortgaging, or converting, our advisers know exactly what lenders require for licensed HMO properties.
