What counts as an HMO
Under the Housing Act 2004 a property is a house in multiple occupation if at least 3 people live there as their main home, they form more than one household, they share a basic amenity (kitchen, bathroom or toilet), and at least one of them pays rent. Converted buildings that do not meet 1991 Building Regulations standards and where less than two-thirds of the flats are owner-occupied can also be HMOs (section 257).
Some properties are excluded: for example buildings managed by councils or housing associations, some student halls, and a home where the owner lives with no more than 2 lodgers.
The three kinds of licence
| Licence | Who needs it | Where |
|---|
| Mandatory HMO | 5 or more people, 2 or more households, sharing amenities | All of England |
| Additional HMO | Smaller HMOs (usually 3 or 4 people) and sometimes s.257 flats, as the designation says | Designated areas only |
| Selective | Most privately rented homes, including single-family lets | Designated areas only |
A property only ever needs one licence. If it needs an HMO licence, it does not also need a selective licence.
Other things to check
- Planning: a new small HMO needs planning permission in an Article 4 area; a large HMO (7+) always does.
- Standards: room sizes, fire safety and management rules apply to all HMOs, licensed or not. See HMO rules.
- Landlord database: separately from licensing, landlords must register with the new PRS Database in their region's window. See register your rental property.
Already letting without a licence you need? Read what to do now.
HMO licence questions
What is an HMO licence?
An HMO licence is permission from the council to let a house in multiple occupation. It names a licence holder, sets the maximum number of occupiers and households, and comes with conditions on safety, room sizes and management. It lasts up to 5 years and does not transfer to a new owner.
Do I need an HMO licence for 3 tenants?
Three unrelated tenants sharing a kitchen or bathroom make the property an HMO, but not a mandatory-licensable one. You need a licence only if the council runs an additional licensing scheme covering that area, or a selective scheme that catches it. Check your council page.
Do I need an HMO licence for 4 tenants?
The same as for 3: a 4-person HMO needs a licence only where an additional (or selective) licensing scheme covers it. Many London boroughs and several large cities have one.
Do I need an HMO licence for 5 tenants?
Yes, if the 5 people form 2 or more households and share a kitchen, bathroom or toilet. That is mandatory HMO licensing and applies everywhere in England, including in flats (other than flats in purpose-built blocks of 3 or more flats).
Do I need an HMO licence for lodgers?
If you live in the property yourself with no more than 2 lodgers, it is not an HMO. With 3 or more lodgers it can become one, and with 5 or more people in 2 or more households (you and your family count as one household) it may need a mandatory licence.
Does a couple count as one household?
Yes. A household is a single person or members of the same family: a couple (married, civil partners or living together), parents, grandparents, children, grandchildren, siblings, aunts, uncles, nephews, nieces and cousins, including step and half relations. Two unrelated friends are two households.
Sources
Last checked 28 Sep 2026. Information, not legal advice. Licensing schemes change often; always confirm with the council before you act.