HMO licence: when a shared house cannot be let without one

A room in a house where five people from different families share one kitchen is not merely a flatshare. In the law of England and Wales that is a large house in multiple occupation, and the landlord needs a licence from the council for it. Letting one without a licence carries an unlimited fine — and the tenants can claim back up to twelve months of the rent they paid.

What counts as an HMO?

A home where at least three tenants from more than one "household" share a toilet, bathroom or kitchen. GOV.UK puts it plainly: a house in multiple occupation is a property rented out by at least three people who are not from one household and who share facilities. It is often called a house share.

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A household is a single person or members of the same family living together. The law counts as family those who are married or living together, including same-sex couples; relatives and half-relatives such as grandparents, aunts, uncles and siblings; and step-parents and step-children. Three friends are three households. A couple with a child is one.

When is a licence compulsory?

When the HMO is large. Three things must all apply: the property is rented to five or more people forming more than one household; some or all tenants share a toilet, bathroom or kitchen; and at least one tenant pays rent (or an employer pays it for them).

A smaller property may still need a licence — that is for the local council to decide. GOV.UK says it directly: before letting a property as an HMO you must contact the council to check whether a licence is needed. Many London boroughs run additional and selective licensing schemes, and there even a three-person house can fall inside the rule.

What conditions does a licence carry?

The central ones are room sizes, and they are set not by the council but by regulations made in 2018 and in force since 1 October 2018. A bedroom for one person aged over 10 must be at least 6.51 square metres. For two people over 10, at least 10.22 square metres. For one child under 10, at least 4.64 square metres. A room smaller than 4.64 square metres cannot be used as sleeping accommodation at all.

The licence also specifies the maximum number of people in each room, and that number may not be exceeded. GOV.UK sets out the rest of the licence holder's duties: the house must be suitable in size and facilities for the number of occupants; the manager — the owner or an agent — must be judged "fit and proper", meaning no criminal record and no breach of landlord law or codes of practice; an updated gas safety certificate goes to the council every year; smoke alarms are installed and maintained; and safety certificates for electrical appliances are provided on request.

The council may add conditions of its own, for example requiring the standard of facilities to be improved. A landlord who disagrees with a condition can appeal to the First-Tier Tribunal.

How long does a licence last?

Five years at most, and it must be renewed before it runs out. Each HMO needs its own licence — one document does not cover two houses. The fee is set by the council and therefore varies between areas. The owner should apply, although a managing agent can apply on their behalf.

What happens if the house is unlicensed?

An unlimited fine — that is GOV.UK's own wording for renting out an unlicensed HMO. "Unlimited" means there is no statutory ceiling; the court decides the amount.

The second consequence hits harder. A tenant of a large HMO that was let without a licence can ask for rent back through a rent repayment order. Under the Housing and Planning Act 2016 the amount relates to a period not exceeding 12 months, and it cannot exceed the rent actually paid for that period, less any housing element of Universal Credit paid for it. The First-tier Tribunal decides, taking into account the landlord's conduct among other things.

What should a tenant do if something is wrong?

Go to the local council: it is responsible for enforcing HMO standards and can make a landlord put problems right. The same council will confirm whether the house is licensed at all — a free check, and a sensible place to start.

The landlord's ordinary safety duties run alongside: an annual gas check by a Gas Safe registered engineer with a copy of the record within 28 days, safe wiring and appliances, a smoke alarm on every storey, a carbon monoxide alarm in any room with a solid fuel appliance, and access to escape routes at all times. A large HMO adds fire alarms and extinguishers to that list.