Mandatory HMO Licensing: The Complete Guide

Mandatory HMO licensing is the national baseline for regulating houses in multiple occupation in England and Wales. Unlike selective or additional licensing, which are discretionary local schemes, mandatory HMO licensing applies uniformly across the country to all properties that meet the statutory threshold.

As of March 2026, all landlords of qualifying HMOs must hold a licence from their local council. Failure to do so is a criminal offence with potentially unlimited financial consequences.

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What is a Mandatory HMO?

A property requires a mandatory HMO licence if it meets both of the following conditions, as set out in section 55 of the Housing Act 2004 and The Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018:

1. It is occupied by five or more persons forming two or more households; and
2. It is a building or part of a building that is either: (a) an entire house or flat occupied by those persons, or (b) a converted building that is not entirely self-contained flats.

The 2018 Order extended mandatory licensing to all HMOs meeting this threshold, regardless of the number of storeys. Previously, mandatory licensing applied only to HMOs of three or more storeys.

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What is a Household?

The definition of a household is critical to determining whether a property is an HMO. Under section 258 of the Housing Act 2004, a household consists of:

• a single person;
• members of the same family living together (including couples, parents and children, and siblings);
• domestic staff living with their employer.

A property occupied by five students from five different families is an HMO with five households. A property occupied by a couple and their three children is not an HMO, as all occupants form a single household.

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HMO Licence Conditions

The conditions attached to a mandatory HMO licence are prescribed by The Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018. The mandatory conditions include:

Room size standards:

• Sleeping rooms for one adult: minimum 6.51 square metres
• Sleeping rooms for two adults: minimum 10.22 square metres
• Rooms used only by children under 10: minimum 4.64 square metres

Safety requirements:

• Annual gas safety certificate from a Gas Safe registered engineer
• Electrical installation condition report every five years
• Smoke alarms on every floor
• Carbon monoxide alarms in rooms with solid fuel appliances
• Fire doors where required by the licence conditions

Management obligations:

• Adequate kitchen facilities for the number of occupants
• Adequate bathroom and toilet facilities
• Waste disposal facilities appropriate to the number of occupants

See our dedicated guide to HMO room size requirements for the full standards.

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Which Councils Issue Mandatory HMO Licences?

Every local council in England and Wales issues mandatory HMO licences. The application is made to the council in whose area the property is located. Major cities with large numbers of licensed HMOs include:

• London: Thousands of licensed HMOs across the capital's 33 boroughs
• Manchester: Significant HMO stock in student and shared housing areas
• Leeds: Large student population driving HMO demand
• Bristol: High concentration of HMOs near the two universities
• Birmingham: One of the largest HMO markets outside London

In addition to mandatory licensing, many of these cities also operate additional licensing schemes that bring smaller HMOs within the licensing regime. Use the Tuxa property licence checker to check the full licensing requirements for any specific address.

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How to Apply for a Mandatory HMO Licence

Applications are made directly to the local council. Most councils now accept online applications. The process typically involves:

1. Completing the application form with details of the property, the landlord, and any managing agent
2. Providing a current gas safety certificate
3. Providing an electrical installation condition report
4. Providing evidence of smoke and carbon monoxide alarms
5. Paying the application fee (typically £500 to £1,500 depending on the council and number of occupants)
6. Undergoing a property inspection if required

The licence is typically valid for five years, subject to compliance with the conditions.

See our step-by-step guide to how to apply for a selective licence for more detail on the application process, which is broadly similar for mandatory HMO licences.

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Penalties for Operating Without a Mandatory HMO Licence

Operating an HMO without a mandatory licence is a criminal offence under section 72 of the Housing Act 2004. The consequences are severe:

• Unlimited fine on criminal conviction in the magistrates' court
• Civil penalty up to £30,000 per unlicensed property (rising to £40,000 under the Renters' Rights Act 2025)
• Rent repayment order for up to 12 months of rent
• Banning order preventing the landlord from letting properties in England

See our full guide to penalties for renting without a licence.

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Related Guides

• What is Additional Licensing for HMOs?
• HMO Room Size Requirements
• Selective vs Additional Licensing: Key Differences
• Penalties for Renting Without a Licence

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Sources

1. Housing Act 2004, section 55 - Licensing of HMOs (legislation.gov.uk)
2. Housing Act 2004, section 258 - Meaning of household (legislation.gov.uk)
3. Housing Act 2004, section 72 - Offences in relation to licensing of HMOs (legislation.gov.uk)
4. The Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 (legislation.gov.uk)
5. The Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018 (legislation.gov.uk)
6. MHCLG: Houses in Multiple Occupation - Mandatory Licensing (GOV.UK)

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Last reviewed March 2026 by Ben Yarrow, founder of Tuxa. Data sourced from council licensing registers and MHCLG guidance.