HMO Licensing — Frequently Asked Questions
The most common questions UK landlords ask about HMO licensing, fees and enforcement.
What is an HMO?
A House in Multiple Occupation (HMO) is a property let to three or more tenants from different households who share kitchen, bathroom or toilet facilities. A 'large HMO' (five or more occupants from two or more households) requires a Mandatory HMO Licence anywhere in England.
How much does an HMO licence cost?
Fees vary by council and licence type. Most fall between £375 and £1,500 for a 5-year licence. Some London boroughs charge over £1,500 per property. Additional and Selective scheme fees often differ from Mandatory fees within the same council.
What happens if I let an unlicensed HMO?
Operating without a required licence is a criminal offence. Councils can issue a civil penalty of up to £30,000 per breach, and tenants (or the council on their behalf) can apply for a Rent Repayment Order of up to 12 months' rent. You may also be banned from acting as a landlord.
What is Selective Licensing?
Selective Licensing covers all privately rented properties (not just HMOs) in a designated area. It requires Secretary of State confirmation for areas above 20% of the local authority's private rented stock. Schemes typically run for 5 years and must be renewed via a fresh designation.
What is an Article 4 Direction?
An Article 4 Direction is a planning tool used by councils to withdraw permitted development rights — most commonly to require full planning permission before a single-family dwelling (C3) can be converted to a small HMO (C4). Article 4 affects planning, not licensing, but the two often overlap.
What is the Fit and Proper Person test?
Before issuing an HMO licence, the council must be satisfied that the proposed licence holder (and the manager, if different) is 'fit and proper'. The test considers criminal convictions involving fraud, dishonesty, violence or sexual offences, breaches of housing or landlord-tenant law, and any unlawful discrimination.
Does the Renters Rights Act 2026 change HMO licensing?
The Renters Rights Act tightens enforcement powers, expands the database of rogue landlords, and changes the grounds for possession — but the underlying Mandatory / Additional / Selective licensing framework from the Housing Act 2004 remains in place. Civil penalties and Rent Repayment Order powers are strengthened.