Houses in multiple occupation (HMO) licence

What is a House in multiple occupation (HMO)?

A property is a HMO if both of the following apply:

  • at least three unrelated tenants live there, forming more than one household and
  • you share a toilet, bathroom or kitchen facilities with other tenants.

In this instance, you will require an Additional licence.

A property is a large HMO if both of the following apply:

  • at least five unrelated tenants live there, forming more than one household and
  • you share a toilet, bathroom or kitchen facilities with other tenants.

In this instance, you will require a HMO licence.

Because HMOs can have large numbers of occupants, they are subject to extra rules to ensure they are safe.

Mandatory licensing

Mandatory licensing is set by the government. It applies to HMOs occupied by 5 or more people in 2 or more households and in 1 of these categories:

  • houses with sharing of basic facilities such as a kitchen, bathroom or WC
  • self-contained flats with sharing of basic facilities such as a kitchen or bathroom
  • the buildings are converted. They have a mix of self-contained flats and non self-contained units.

Additional licensing

We have adopted a scheme which applies to smaller HMOs not covered by mandatory licensing. This applies to HMOs occupied by three or more people in two or more households.

Additional licensing applies to buildings converted into self contained flats. These flats do not meet the Building Regulations 1991(or later) and:

  • the building is 3 or more storeys in height
  • there are at least 3 flats
  • all the flats are privately rented
  • both the building and the self-contained flats are under the same ownership or control.

Self-contained units (section 257)

Section 257 of the Housing Act 2004 applies to whole converted property. It does not apply to individual homes.

It describes a HMO as a building or part of a building which has been converted into, and consists of, self-contained flats.

Less than 2/3 are occupied and the conversion work does not follow the appropriate building standards. This would usually be the 1991 Building Regulations.

Penalties for not having a HMO licence

Failing to have a HMO licence is a criminal offence and subject to an unlimited fine. Listed below are details of possible breaches of HMOs:

  • it is a criminal offence to obstruct the local authority in carrying out their functions. This is under Parts 1-4 and sections 239 and 240. A penalty on summary conviction is currently up to £2,500.
  • it is an offence if the person in control of the property fails to apply for a licence for a licensable property. An unlimited fine may be imposed.
  • it is an offence to allow a property to be occupied by more people than are permitted under the licence. An unlimited fine may be imposed.
  • overcrowding carries an unlimited penalty. Landlords who breach other licence conditions can be fined £5,000 per offence.

Defences for not having a licence

There are three defences available to someone who does not have the requisite licence:

  1. when there is a reasonable excuse for his failure (section 72(1)).
  2. a notification had been given in respect of the house under section 62(1), (Temporary Exemption).
  3. an application for a licence had been made. This is in respect of the house under section 63 and the notification or application was in effect.