In England you need a mandatory HMO licence if your property is let to 5 or more people forming 2 or more households who share a kitchen, bathroom or toilet. Smaller HMOs and ordinary lets may still need a licence where your council runs an additional or selective scheme. Check your council's licensing pages and public register by postcode.
Updated 15 October 2026 · Figures checked against legislation.gov.uk and GOV.UK on 15 October 2026 · Statutory penalties are maximums; councils and courts decide the amount.
There are three kinds of property licence in England, and the answer depends on which one your council applies to your property.
Mandatory HMO licensing applies everywhere in England. Under the Housing Act 2004 s.254, a property is a house in multiple occupation (HMO) when people from more than one household live in it as their main home, rent is paid, and two or more of those households share a basic amenity (a toilet, personal washing facilities or cooking facilities) or the property lacks one. The Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 (SI 2018/221), article 4 then says which HMOs must be licensed: those occupied by five or more people living in two or more separate households that meet the standard test, the self-contained flat test (unless the flat is purpose-built in a block of three or more flats) or the converted building test. The old "three or more storeys" condition went on 1 October 2018.
Additional licensing is a council scheme. Housing Act 2004 s.56 lets a council designate all or part of its district so that a described class of smaller HMOs (for example, three or four sharers) also needs a licence.
Selective licensing is also a council scheme. Housing Act 2004 s.80 lets a council designate an area where every privately rented house needs a licence, HMO or not, typically because of low demand or anti-social behaviour.
So a family let needs no licence unless it sits in a selective-licensing area, while a five-bed house share needs a mandatory licence wherever it is; everything in between turns on your council's designations.
This table is a starting point, not a determination. Only the council can confirm which scheme covers your postcode.
| Who lives there | Is it an HMO? | What you probably need |
|---|---|---|
| One household (a family, a couple, a single person) | No | No HMO licence. A selective licence only if the council has designated the area. |
| 3 or 4 people from 2 or more households sharing a kitchen, bathroom or toilet | Yes (GOV.UK describes an HMO as at least 3 people not from one household) | Not mandatory. An additional licence if the council runs an additional scheme covering this size; a selective licence if the area is designated. |
| 5 or more people from 2 or more households sharing facilities | Yes | Mandatory HMO licence, everywhere in England (SI 2018/221 art. 4). |
| 5 or more people from 2 or more households in a purpose-built flat in a block of 3 or more flats | Yes | Not mandatory (art. 4(c)(ii) excludes it). Check for an additional or selective scheme. |
| Self-contained flats each let to one household, with all three amenities inside the flat | Usually not under the standard test | Ask the council: a converted block of flats can still be an HMO under s.257 of the 2004 Act. |
"Household" has its own statutory meaning (s.258 of the Act): a family counts as one household however many people it has; unrelated friends count as one household each. Count households first, then people.
Under Housing Act 2004 s.68 a licence covers one HMO only, cannot be transferred, and cannot last more than 5 years; GOV.UK describes it as valid for a maximum of 5 years and renewable before it runs out. The council sets the fee.
GOV.UK's licence page sets out what the council will look at: the house must be suitable for the number of occupants (size and facilities), and the manager, you or your agent, must be a "fit and proper" person, for example with no criminal record or history of breaching landlord law. Standard conditions include sending the council an updated gas safety certificate every year, installing and maintaining smoke alarms, and providing electrical appliance safety certificates when asked. The council can attach further conditions, such as improving facilities, and you can appeal conditions to the First-tier Tribunal.
Letting or managing a property that needs a licence and does not have one is a criminal offence: s.72(1) for HMOs and s.95(1) for selective licensing. Since 1 May 2026 the offence is committed by the person managing or controlling the property, by the immediate landlord, and by any superior landlord above them. The consequences:
There is a reasonable-excuse defence (s.72(4A)), and the fact that an application was in progress is a defence in itself (s.72(4)). All maxima are "up to"; the council's own penalty policy decides the figure.
Until 1 May 2026, Housing Act 2004 s.75 (HMOs) and s.98 (selective licensing) stopped a landlord serving a section 21 notice while the property stayed unlicensed. Section 21 was abolished for assured tenancies in England on 1 May 2026, and the Renters' Rights Act 2025 (Schedule 2, paragraphs 62 and 63) omitted both sections on the same day. Those sections only ever stopped a section 21 notice; they never barred a possession order on a Section 8 ground, and nothing in Housing Act 1988 s.7 (checked 15 October 2026) adds a licensing condition.
That does not make an unlicensed property safe ground for a possession claim. The offence is live for as long as the property is unlicensed, the tenant can answer a claim with a Rent Repayment Order application, and the council can impose a civil penalty. ComplyWithMe takes the cautious line as product policy, not law: in the app, a licensable property without a current licence turns the Protection Score Red and holds the possession pack and the BundleCreator export until the licence position is resolved. Take a solicitor's view before relying on any ground for an unlicensed property.
An HMO licence says the house is fit for that number of occupants; it does not say the change of use was allowed. Converting a home into a shared house can need planning permission, particularly where the council has withdrawn permitted-development rights for small HMOs or the HMO is large. Ask the planning department too; a licence does not cure a planning breach.
The free exposure check at complywithme.co/landlord/check names your council from the postcode and shows your exposure. In the app you record the licence (a photo or PDF of it), the app works out the exact last compliant day before it expires and reminds you ahead of time, and applies the mandatory 5-people, 2-households test to the occupancy you enter. Where no licence is needed, you record that determination and the app asks you to re-confirm it after 12 months. Where a licence is needed and missing, it treats that as a possession bar, as described above.
Government changes that bear on this duty. Where the status says in force the rule already applies; everything else is not yet law for private landlords. Dates are quoted as the government has published them, checked on 15 October 2026.
| Change | Status today | Published timing | Sensible preparation |
|---|---|---|---|
| Mandatory landlord and property registration on the Private Rented Sector Database (the landlord register), with an annual fee | regulations in draft | Regional rollout from 15 December 2026 (West Midlands first) to 15 September 2027 for all other purposes, per the draft Private Rented Sector Database Regulations 2026 | Keep copies, not just dates, of the gas safety record, EICR and EPC for each property, and know whether a licence applies; those are what the draft regulations say the entry needs. Source |
Not a mandatory one. Mandatory licensing starts at 5 or more people in 2 or more households. A 3-person house share is still an HMO, so you need a licence if your council runs an additional-licensing scheme that covers it, or a selective-licensing scheme for the area. Check the council's licensing pages.
Every council must keep a public register of the licences in force (Housing Act 2004 s.232). Find the council for the postcode, open its property-licensing pages and search the register for the address. It shows the licence holder, the permitted number of occupants and the expiry date.
A scheme under Housing Act 2004 s.80 where a council designates an area in which every privately rented house needs a licence, whether or not it is an HMO. Designations are local and time-limited, so you must check the council's map and dates.
Up to 5 years (Housing Act 2004 s.68). The council may grant a shorter term. You must renew before it runs out, and each HMO needs its own licence.
On prosecution the fine is unlimited. As an alternative, the council can impose a civil penalty of up to £40,000 (Housing Act 2004 s.249A, cap raised on 1 May 2026). Tenants can also apply for a Rent Repayment Order of up to 2 years' rent for offences from 1 May 2026, and a conviction can lead to a banning order.
A purpose-built flat in a block of 3 or more flats is excluded from mandatory licensing even with 5 or more occupiers (SI 2018/221 art. 4). It may still fall under an additional or selective scheme, and a converted house split into flats can be an HMO under s.257. Ask the council.
It is a defence to the s.72(1) offence that a valid licence application had been made and was still effective at the time (s.72(4)). Apply before the tenancy starts, keep the acknowledgement, and chase the council if the decision is slow.
The old bar on section 21 notices for unlicensed properties (Housing Act 2004 ss.75 and 98) went when section 21 was abolished on 1 May 2026, and nothing bars a possession order on a Section 8 ground for an unlicensed property. The offence, the civil penalty and the Rent Repayment Order risk remain, so get a solicitor's view first. As product policy, ComplyWithMe holds the possession pack until a missing licence is resolved.
When a compliance question becomes a court or tribunal matter, BundleCreator.co, from the same company, turns the records into a court-ready bundle. From the notice to the order, stage by stage. Start with the possession and arrears journey.
Enter a postcode and the check names your council and shows your exposure. In the app, record the licence, get the exact last compliant day and reminders before renewal, and see a missing licence hold your possession pack in the app.
Check your council and licensing exposure, freeFrom the ComplyWithMe news feed: enforcement decisions and legislation changes, each linked to its official source.
Download the free app, then subscribe on the web at complywithme.co/subscribe — launch offer £59.99 for your first year with one property, then £119/year (until 28 February 2027, while 100 launch places last)from £119 a year for one property. Sign in with the same account and the full app unlocks.
