Mandatory HMO licence (5 or more people, 2 or more households)

The property is an HMO occupied by five or more persons living in two or more separate households and meets the standard test, the converted building test, or the self-contained flat test (unless it is a purpose-built flat in a block of three or more self-contained flats). A household is a single person or members of the same family living together.

Apply to the local housing authority for an HMO licence (or a temporary exemption notice) and do not let the HMO unlicensed. Comply with all licence conditions, including the mandatory conditions: give the council an annual gas safety certificate, keep electrical installations, appliances and furniture safe and provide declarations on demand, keep smoke alarms on each storey and CO alarms where required in working order, give occupiers a written statement of terms, and do not exceed the permitted number of occupants or households.

Deadline

Ongoing

Licence needed whenever the HMO meets the description; a duly made application or temporary exemption notice is a defence while it is effective. Licences last up to 5 years and must be renewed.

• HMO licence and its conditions
• Copy of the application or temporary exemption notice if pending
• Annual gas safety certificate sent to the council

Civil penalty

Up to £40,000

Criminal offence

Yes, you can be prosecuted

Rent repayment

A rent repayment order can be made

Other consequences

Operating an unlicensed HMO is an offence under s.72(1): unlimited fine on prosecution, or a civil penalty of up to £40,000 for offences on or after 1 May 2026 (£30,000 before). Since 1 May 2026 superior landlords can also be liable, subject to defences. Rent repayment orders of up to 2 years' rent for offences on or after 1 May 2026, sought by tenants or the council. Breach of licence conditions and over-occupation are separate offences. Possession: the old bar on section 21 notices for unlicensed HMOs (s.75) was omitted from 1 May 2026 with section 21 itself; the landlord can now use mandatory Ground 6B (four months' notice) where a licence application was refused or a licence revoked, or the HMO is occupied above the licensed limit.

• Licensing and Management of Houses in Multiple Occupation (Prescribed Descriptions) (England) Order 2018 (SI 2018/221), art 4legislation.gov.uk
• Housing Act 2004, s.55 and s.61 (HMOs required to be licensed)legislation.gov.uk
• Housing Act 2004, s.68 (licence duration, maximum 5 years)legislation.gov.uk
• Housing Act 2004, s.72 (offences, as amended by Renters' Rights Act 2025 s.105 from 1 May 2026)legislation.gov.uk
• Housing Act 2004, s.249A (civil penalty up to £40,000)legislation.gov.uk
• Housing Act 2004, s.254 (meaning of HMO)legislation.gov.uk
• Housing Act 2004, Schedule 4 (mandatory licence conditions)legislation.gov.uk
• Housing and Planning Act 2016, ss.40, 41 and 44 (rent repayment orders)legislation.gov.uk
• Housing Act 1988, Schedule 2 Ground 6B (inserted by the Renters' Rights Act 2025)legislation.gov.uk
• Housing Act 2004, s.75 (section 21 restriction, omitted from 1 May 2026)legislation.gov.uk

Official guidance

Statutory guidance sets a civil penalty starting level of £17,000 for an unlicensed mandatory or additional HMO and £20,000 for knowingly permitting over-occupation. No source found says an unlicensed property bars a section 8 claim; the specific section 21 bar has simply gone. Council-specific fees and conditions live in the licensing dataset.

• Selective or additional licence where the council has a designationIn forceFine up to £40,000

  If your council has designated an additional HMO licensing area or a selective licensing area covering your property, you must hold a licence for it. Schemes, areas, fees and conditions vary by council.