Find a Solicitor for your House in multiple occupation (HMO) License

Houses of Multiple Occupancy (HMO) under the Housing Act 2004 must be licenced. It is a criminal offence to operate an unlicenced HMO, so it is crucial that landlords are up to speed with the regulations on HMOs. Even experienced landlords face complex regulations that they must navigate, and many non-compliant landlords are caught out. 

You could face an unlimited fine if caught and be given a criminal record.

This is a comprehensive guide on Houses in Multiple Occupation (HMO) licensing, including the HMO licence legal requirements, application processes, and compliance obligations. 

Thanks to our experienced landlord and tenant solicitors, Lawhive is a reliable and affordable legal services provider for landlords and property managers seeking to navigate HMO licensing. 

We’ve written this for: 

• Landlords and property owners 
• Prospective HMO landlords

Ensure you’re compliant with all the rules on HMOs by getting in touch with our team to seek legal assistance for all your HMO-related needs.

What is a HMO? 

Houses of multiple occupancy refer to rented houses where a landlord rents to three or more people, of more than one household and toilet, bathroom and kitchen facilities are shared between tenants.

The rules vary in different councils, but you may require a licence if you rent a property to three or more tenants.

Many landlords are not fully aware of the rules, so it is important to educate yourself about your legal requirements. Councils carry out spot checks on properties to ensure landlords have the correct licences, so it isn’t something you can turn a blind eye to. 

Landlords must also be aware of minimum sizes for bedrooms, and the need to comply with council refuse schemes.

Types of HMO licences 

There are different types of HMO licences depending on property type and the number of people in occupation.

Mandatory licence

A mandatory licence applies to a household with five or more occupants, where the tenants comprise more than two households. Bathroom, kitchen and toilet facilities are also typically shared, and at least one tenant pays rent.

There is an exception for purpose-built flats in a block of three or more self-contained flats.

Selective licence

Selective licences are at the discretion of the council. They can affect properties regardless of their size, the number of occupants or the number of storeys. Councils can enforce selective licences on rental properties on an entire street, ward or entire borough.

Selective licences may be in place in areas of low housing demand.

Additional licences

Councils can put in place policies requiring different sizes of HMOs to be licenced. A council might decide to require all HMOs to be licenced. 

Does my property need an HMO licence? 

You will need to be aware of:

• The mandatory requirements
• Local authority requirements
• Exemptions

We’ve already mentioned the mandatory requirements that require you to get a licence as a landlord with an HMO.

In terms of minimum bedroom sizes, they can differ between local authorities. Different local authorities have different requirements for HMOs.

Councils require you to send updated gas safety certificates to them every year, install and maintain smoke alarms and provide safety certificates for all electrical appliances when requested.

Your local council may also place conditions on your licence, these could include upgrading your facilities to a higher standard. Landlords can object to any conditions they don’t agree with at a First-Tier Tribunal.

How to get an HMO licence

To get an HMO licence you will need to meet the application requirements. You’ll need to gather documents that outline the following information:

• Facilities – you need to outline the facilities available at the property. You should include the number, locations and sizes of bedrooms, bathrooms and kitchens
• Structure – include information about the structure of the building, including how many stories it has
• Safety – include information about safety equipment and certifications, e.g. gas safety certificates
• Names and addresses – of people or organisations with any interest in the property, this could include freeholders, leaseholders, managing agents and mortgage lenders
• Card – payment details
• Date of birth – your date of birth if you are applying for yourself
• Criminal background check – into your name which states you have no criminal convictions

Steps to apply

The first step to applying is contacting the local authority. They’ll verify whether you need a licence. 

If your property isn’t up to the necessary standards, make sure you prepare for the application by getting the correct certifications. 

You can then apply for an HMO licence by visiting your local council’s website to access and fill out the application form. As well as providing basic information about your property, you will need to gather documents that demonstrate your compliance with safety regulations. 

When submitting the application, you’ll need to pay a licensing fee which varies depending on the size and location of your property. 

To avoid delays, provide all requested documentation accurately. Your local council can give you detailed guidance on how to complete your application properly.

Assessment and inspection

The council will inspect your property after you submit your application to verify that all the information you have provided is accurate. 

They use the Housing Health and Safety Rating System (HHSRS), under the Housing Act 2004. This is a risk-based evaluation tool which enables local authorities to identify and protect against potential risks and hazards to health and safety in landlord’s properties. 

The HHSRS assesses 29 categories of housing hazard. Each hazard is weighted to help determine if a property is rated category 1 (serious) or category 2 (other).

It’s important to prepare for an inspection. Requirements differ between councils; however, they commonly include submitting:

• Detailed floor plans
• Electrical installation condition reports
• Gas safety record 
• Fire alarm certificate
• Emergency lighting certificate
• Fire risk assessment

Building control documents 

How long does an HMO licence last?

HMO licences typically last up to five years, although local councils may grant shorter licence periods at their discretion.  

How do you renew an HMO licence? 

To renew an HMO licence, you will need to complete the following steps:

1. Complete the online application form and submit it with the necessary supporting evidence and related fee
2. Confirm the property conforms to HMO standards
3. Confirm you will be the licence holder – it must be the same person as the previous licence
4. Ensure you submit the renewal licence before the previous licence expires

How often do I need to renew my HMO licence?

You must renew it before it is due to expire. Most licences last a maximum of 5 years, however, some may be shorter.

What are the responsibilities of HMO landlords?

HMO landlords must:

• Ensure property standards
• Carry out annual safety checks 
• Manage tenants 
• Report changes to the local authority

What can happen if you operate without an HMO licence?

If you operate an HMO without an HMO licence you could face fines and penalties. It is a criminal offence to control an HMO that isn’t, but should be licenced, under Section 72 of the Housing Act 2004.

You may:

• Face an unlimited fine
• You could be prosecuted and face court fees
• Have to repay the tenant’s rent 
• Be given a banning order by the local authority 
• Be entered into the database of rogue landlords 

Tenants have legal rights and can use legal recourses to have their rent repaid. This is facilitated by a rent repayment order. It gives tenants the right to claim up to 12 months’ rent. Also, when landlords fail to obtain a licence for an HMO they may not be able to make valid Section 21 notices, which can protect tenants from eviction. 

How long does it take to get an HMO licence?

It usually takes around three months to get an HMO licence. When delays occur you can check your application progress on your local council’s online portal.

What happens if my HMO licence application is refused?

Landlords can appeal against a licence refusal or the conditions set by a licence by appealing to the First-Tier Tribunal.

You’ll be charged a fee set by your local council.

Can I manage my HMO myself, or do I need an agent?

There is no legal obligation to use an agent to manage an HMO. The question of whether you decide to manage an HMO yourself or use an agent is a personal decision. It depends on your goals, ability, time and the resources you can commit to the process. 

Using an agent will save you time and a headache, however you will have to pay their fees.

Can you change the ownership of an HMO licence?

Yes, you can. To change the ownership of an HMO licence you will need to apply for a variation to your licence. 

You may need to do this when:

• You change your address
• You change your name
• You want to increase the maximum number of occupiers 
• There are significant changes to the property layout or accommodation
• There is a change in management arrangements

How Lawhive can assist with HMO licensing

At Lawhive, our expert solicitors provide comprehensive legal services for landlords. We can assist you in securing an HMO licence through our legal expertise.

Using our online platform gives you access to affordable legal representation, as we pass the savings of not having physical premises back to you. Our fee structure also ensures no hidden fees as we operate on a fixed fee basis.

Legal services for HMO licencing

There is quite a lot of admin required when preparing an HMO licensing application. Our solicitors can ensure you have the correct accreditations and provide the necessary documentation required by your council.

We’ll make sure you get your application right the first time, so you can go back to managing your property portfolio. 

Contact Lawhive today for a free case evaluation and quote from our solicitors.

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