Do I need a licence to let my property? HMO, additional and selective licensing

What an HMO is

A house in multiple occupation (HMO) is a home let to at least three people who are not one household (a family, or a couple) and who share facilities such as the kitchen, bathroom or toilet. Three friends sharing a flat is an HMO; a family of five is not.

Mandatory HMO licensing

Across England, a licence from the council is required when the home is let to five or more people forming more than one household who share facilities, and at least one of them pays rent. The number of storeys no longer matters.

A licence lasts up to five years. You need one for each property, and you renew it before it ends. The council checks that the home is suitable for the number of people, that you (and any manager) are "fit and proper", and sets conditions such as:

• a gas safety record every year and electrical safety reports;
• smoke alarms, kept in working order;
• minimum room sizes and the maximum number of occupiers;
• how rubbish and repairs are dealt with.

Additional licensing

A council can extend licensing to smaller HMOs (for example three or four people from two households) in all or part of its area. This is called additional licensing, and the rules and fees are the council's own.

Selective licensing

A council can also require a licence for every privately let home in a chosen area, even a house let to one family. A scheme can last up to five years. Since 23 December 2024 councils in England no longer need the government's confirmation for a scheme of any size, so more areas have one. Schemes start and end, so check each time you let.

How to check

1. Find your council on GOV.UK by postcode.
2. Look for "property licensing" or "landlord licensing" on its website. Most have a postcode checker for additional and selective schemes.
3. Apply before the tenancy starts, or as soon as a scheme begins in your area. Fees vary by council.
4. Keep the licence and its conditions with the home's papers.

Separately, turning a family home into a small HMO may need planning permission where the council has made an Article 4 direction. That is a planning question, not a licensing one.

If you let without a licence

Letting a home that needs a licence without one is a criminal offence. The council can:

• prosecute, with an unlimited fine; or
• impose a civil penalty of up to £40,000 instead (raised from £30,000 for offences from 1 May 2026);
• apply, or let the tenants apply, for a rent repayment order: since the Renters' Rights Act the tribunal can order up to 24 months' rent to be repaid;
• in serious cases, take over the management of the home.

Breaking a licence condition is also an offence. A licence must be shown on the landlord database once you register.

Keeping it in order

• Diary the licence's end date and renew in good time.
• Tell the council about changes it asks to know about, such as a new manager.
• Keep the certificates the licence asks for together, ready to send.

LevelMoves can keep the licence number and its end date with the home and remind you before renewal.

This guide is information about the law in England, not legal advice. Your council's own scheme documents decide what applies to your property.