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Licensing

HMO licensing: when a landlord needs a licence

Renting an unlicensed HMO is one of the fastest routes to a rent repayment order. Knowing which scheme applies is the first line of defence.

Mandatory licensing

A property is a licensable HMO under mandatory licensing if it is occupied by five or more people forming two or more households who share facilities such as a kitchen or bathroom.

Additional and selective licensing

  • Additional licensing: a council can extend HMO licensing to smaller HMOs in its area.
  • Selective licensing: a council can require a licence for all private rentals in a designated area, HMO or not. Always check the local scheme.

Penalties

Renting an unlicensed licensable property is a criminal offence, can trigger a civil penalty of up to £30,000, and exposes you to a rent repayment order of up to 12 months' rent.

Last reviewed September 2026. This is general information, not legal advice - always check your local authority's requirements.

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