A mandatory HMO licence is a legal requirement for any house in multiple occupation (HMO) that is occupied by five or more people forming two or more separate households and sharing facilities such as a kitchen or bathroom. This is a national requirement that applies across all of England and Wales, regardless of whether the local council operates any additional or selective licensing schemes.
This guide explains who needs a mandatory HMO licence, how to apply, what conditions are attached, and what happens if you fail to obtain one.
Since 1 October 2018, the mandatory licensing requirement applies to all HMOs in England that meet the following criteria:
This applies regardless of the number of storeys. Before October 2018, mandatory licensing only applied to HMOs of three or more storeys, but the Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 removed the storey requirement.
A household is generally defined as members of the same family living together. People who are not related to each other are usually considered to be separate households. For example:
A mandatory HMO licence is issued by the local council and typically lasts for up to five years. The licence specifies:
Maximum occupancy. The licence states the maximum number of people who may occupy the property. This is determined by the council based on the size and layout of the property.
Licence conditions. The council attaches conditions to the licence that the landlord must comply with. Standard conditions include requirements for fire safety, gas and electrical safety certificates, waste management, and property maintenance.
The licence holder. The licence is granted to a named individual (usually the landlord or managing agent) who must be a fit and proper person to hold the licence.
Applications are made to the local council where the property is located. The process typically involves:
Completing an application form with details of the property, the proposed licence holder, and the management arrangements.
Paying the licence fee. Fees vary between councils but typically range from £500 to £1,500 for a five-year licence. Some councils charge in two parts: an initial application fee and a further fee upon grant.
Providing supporting documents including gas safety certificate, electrical installation condition report (EICR), floor plans, fire risk assessment, and evidence of the proposed licence holder's fitness.
Council inspection. The council may inspect the property before or after granting the licence to verify compliance with standards.
The Licensing and Management of Houses in Multiple Occupation Regulations 2006 set the national baseline for management standards, but councils can impose additional conditions.
All mandatory HMO licences include conditions. While these vary between councils, common mandatory conditions include:
| Condition | Requirement |
|---|---|
| Gas safety | Annual gas safety certificate by a Gas Safe registered engineer |
| Electrical safety | EICR every 5 years by a qualified electrician |
| Fire safety | Working smoke alarms on each floor, fire blanket in kitchen, fire doors where required |
| Furniture safety | All furniture must comply with fire safety regulations |
| Waste management | Adequate bins and waste disposal arrangements |
| Property maintenance | Property kept in good repair and free from hazards |
| Tenant references | Reasonable steps to obtain references for prospective tenants |
| Anti-social behaviour | Reasonable steps to prevent and deal with antisocial behaviour |
Since 1 October 2018, mandatory minimum room sizes apply to all licensed HMOs:
| Room type | Minimum floor area |
|---|---|
| Single bedroom (1 person aged 10+) | 6.51 m² |
| Double bedroom (2 persons aged 10+) | 10.22 m² |
| Child under 10 (single room) | 4.64 m² |
Any room smaller than 4.64 m² cannot be used as sleeping accommodation. These are national minimums; some councils set higher standards.
Operating a licensable HMO without a licence is a criminal offence under section 72 of the Housing Act 2004. The consequences include:
The statutory definition of a mandatory HMO is set out in section 55 of the Housing Act 2004. The meaning of "household" — which includes domestic staff living with their employer — is defined in section 258. The definition also covers a converted building that is not entirely self-contained flats.
Criminal prosecution. Conviction carries an unlimited fine in the magistrates' court.
Civil penalties. Under section 249A of the Housing Act 2004, councils can issue civil penalties of up to £40,000 per offence as an alternative to prosecution. This maximum was increased from £30,000 by the Renters' Rights Act 2025, effective 1 May 2026.
Rent repayment orders. Tenants or the local authority can apply to the First-tier Tribunal for a rent repayment order requiring the landlord to repay up to 24 months of rent (increased from 12 months by the Renters' Rights Act 2025).
Inability to serve possession notices. A landlord cannot serve a valid possession notice while the property is required to be licensed but is not.
Banning orders. Repeat offenders may face a banning order preventing them from letting any property in England.
For more detail on penalties, see our guide to penalties for renting without a licence.
The council must be satisfied that the proposed licence holder (and the property manager, if different) is a fit and proper person. The council considers:
If the council is not satisfied, it must refuse the licence application.
| Mandatory HMO Licensing | Additional HMO Licensing | Selective Licensing | |
|---|---|---|---|
| Legal basis | Housing Act 2004, Part 2 | Housing Act 2004, s.56 | Housing Act 2004, Part 3 |
| Applies to | HMOs with 5+ people, 2+ households | Smaller HMOs (defined by council) | All rented properties in designated area |
| Coverage | National (all of England) | Council-specific areas | Council-specific areas |
| Requires MHCLG approval | No | No (since 2015) | Yes (for large schemes) |
| Typical fee | £500 to £1,500 | £500 to £1,200 | £400 to £1,000 |
If your property is occupied by five or more people from two or more households sharing facilities, it almost certainly requires a mandatory HMO licence. Use the Tuxa property checker to confirm whether additional or selective licensing also applies in your area.
You can also set up a property alert on Tuxa to be notified if licensing requirements change for your property.
Purpose-built flats in a block of three or more self-contained flats are generally exempt from mandatory HMO licensing, even if the individual flat is shared by five or more people. However, converted flats (where the building was not originally designed as flats) may still require a licence.
Not under mandatory licensing. However, your council may operate an additional licensing scheme that covers smaller HMOs (typically 3 or 4 occupants). Check on Tuxa whether your property falls within an additional licensing area.
You can manage the property yourself, provided you are a fit and proper person and can comply with all licence conditions. Many landlords choose to use a managing agent, but this is not a legal requirement.
Up to five years. Some councils issue shorter licences (typically one year) where there are concerns about the property or the licence holder. You must reapply before the licence expires.
Yes. A limited company can hold an HMO licence, but the council will also require a named individual — typically a director — to be the designated licence holder. That individual must be a fit and proper person as defined by the Housing Act 2004.
Last reviewed June 2026 by Ben Yarrow, founder of Tuxa. Data sourced from legislation.gov.uk and MHCLG guidance.