HMO licence application: a step by step guide

Mandatory licensing catches most houses with five or more occupiers in two or more households. Additional schemes catch many smaller ones.

4 min read · Updated 21 August 2026

Overview

Mandatory HMO licensing applies where a property is occupied by five or more people forming two or more households who share amenities. Many councils operate additional licensing that catches smaller HMOs, and selective licensing that can catch single family lets in defined areas. The application covers the property, the licence holder and the manager, and the council assesses fitness, amenity standards, room sizes, fire safety and management arrangements.

Why it matters

Operating an unlicensed HMO is an offence, exposes you to a rent repayment order of up to twelve months of rent and blocks possession routes while the breach continues.

Legal requirements

Mandatory licensing applies to HMOs with five or more occupiers in two or more households.
Councils may designate additional and selective licensing schemes locally.
Licence holders must satisfy a fit and proper person assessment.
Licences carry conditions covering amenities, safety, occupancy limits and management.

Common mistakes

Assuming a three storey rule still applies, when the storey test was removed for mandatory licensing.
Applying after tenants move in rather than before.
Overlooking minimum room size rules and letting a room below the threshold.
Missing an additional licensing designation in a neighbouring ward.

Practical guidance

Check the council website for mandatory, additional and selective designations before you buy.
Prepare gas, electrical, fire alarm and emergency lighting certificates before applying.
Draw a floor plan with room sizes, since most councils require one.
Budget for both the fee and any works the council requires as licence conditions.

What the council will ask for

Expect to supply proof of ownership, a floor plan with room dimensions, the gas safety record, the electrical installation condition report, fire alarm and emergency lighting certificates, a fire risk assessment, an energy performance certificate, details of the licence holder and manager, and declarations about convictions and previous enforcement. Missing documents are the main reason applications sit unprocessed for months.

Living with the conditions

Licences run for a fixed period, commonly five years, and carry conditions. Typical conditions cover the maximum number of occupants per room, annual gas checks, five yearly electrical reports, alarm testing frequency, waste arrangements and providing tenancy documents on request. Diarise the renewal at least three months ahead, because an expired licence is treated the same as never having one.

Frequently asked questions

Does an HMO licence apply to a three bedroom house share?

Not under mandatory licensing, but it may fall under an additional licensing scheme in that council area, so check locally.

What is a rent repayment order?

A tribunal order requiring a landlord to repay up to twelve months of rent, available where a property was let without a required licence among other offences.

Can I apply while the property is tenanted?

Yes, and you should apply immediately if you discover a licence is needed. A duly made application protects you while it is being determined.

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This guide is general information for UK landlords and letting agents, not legal advice. Rules differ across England, Wales, Scotland and Northern Ireland — check your local requirements or take advice before acting.