Do I Need an HMO Licence for This Property?

If you get this wrong, you are gambling with GBP 30,000 fines per offence and up to 12 months' rent back. The goal here is simple: answer five questions and decide if you need to be applying for a licence this week.

"This guide provides general information about UK landlord tax obligations. It is not financial or legal advice. Tax treatment depends on your individual circumstances and may change. Consider consulting a qualified accountant or solicitor for advice specific to your situation."

Q1 - How many people live in the property?

Count every adult and child who treats it as their only or main home.

• 1-2 people total = Go to Q5 (selective licensing may still bite).
• 3-4 people total = Go to Q2.
• 5 or more people = Go to Q2 immediately; mandatory HMO licensing is now very likely.

Q2 - How many separate "households"?

A household = a family unit (couple, plus their kids) or a single person. Three unrelated sharers = 3 households.

All one household (for example a couple with kids or one extended family)

• This is not an HMO.
• You do not need an HMO licence, but you may still need a selective licence. Go to Q5.

Two or more households (sharers)

• 3+ unrelated adults usually means HMO by definition.
• Licensing depends on numbers and local schemes. Go to Q3.

Q3 - Do they share facilities (kitchen, bathroom, toilet)?

Yes - they share a kitchen and/or bathroom

You are running an HMO in planning/licensing terms.

Now check numbers and area:

5 or more people, 2+ households, sharing facilities

• This meets the national mandatory HMO licensing test in England and Wales.
• Outcome: You need a mandatory HMO licence unless the property is in a rare exempt category. Use the HMO licensing checker tool and apply to the council.

3-4 people, 2+ households, sharing facilities

• This is a small HMO.
• You may need an HMO licence if your council runs an additional licensing scheme. Go to Q4.

No - each household has its own self-contained facilities

• For example, three self-contained flats each let separately.
• You probably do not have an HMO licence obligation, but each flat might still fall under selective licensing. Go to Q5.

Q4 - Is the property in an "additional licensing" area for small HMOs?

Additional licensing = the council has decided to licence smaller HMOs (often 3-4 people) that sit below the national 5+ threshold.

Actions

Check your council's scheme via:

• HMO licensing local-intent pages.
• Council website HMO/additional licensing section.
• HMO licensing checker tool (postcode search).

Outcomes for 3-4 person shared houses

Yes, the area has additional licensing that covers your property type

Example: London boroughs like Newham, Brent, Hillingdon; big cities such as Birmingham, Coventry, many university towns.

Outcome: Your 3-4 person shared house needs an HMO licence under the additional scheme. Start the application and bring the property up to HMO standards.

No, no additional licensing for your postcode/property type

The property is still an HMO in management terms, but not licensable as an HMO.

Outcome: No HMO licence required for now, but you must still meet HMO management and fire safety standards, and you might still be under selective licensing. Go to Q5.

Remember: councils keep adding new additional schemes. A 4-bed in 2023 that did not need a licence might do in 2026, so re-check regularly.

Q5 - Is it in a selective licensing area (even if not an HMO)?

Selective licensing is different:

• It can apply to any privately rented property, even a single-family AST, in designated areas.
• Many councils now run selective schemes over large chunks of their area.

Actions

Check:

• Council website for "selective licensing" maps and postcodes.
• HMO licensing checker tool - many include selective schemes.

Outcomes

Yes, it is in a selective licensing area

• Even if it is only 1 household or a self-contained flat, you may need a selective licence.
• Outcome: You need a licence, but it will be a selective property licence, not an HMO licence. The fines and Rent Repayment Order risk are still very real if you ignore it.

No, not in any selective or additional scheme, and not a 5+ sharer HMO

• Outcome: You currently do not need a licence, but you still must meet all general safety, deposit and tenancy law requirements. Keep an eye on new local licensing consultations.

Summary: the main "yes, you need a licence" triggers

You almost certainly need a licence if:

• 5+ people, 2+ households, sharing facilities anywhere in England/Wales = mandatory HMO licence.
• 3-4 people, 2+ households, sharing facilities in a council with additional HMO licensing = additional HMO licence.
• Any tenants at all in a designated selective licensing area = selective licence, even if not an HMO.

If, after answering these five questions, you are still unsure, your next action is simple: run your postcode through the HMO licensing checker tool, then ring the council's private sector housing team and get an answer in writing.

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