HMO Licensing in 2026: Mandatory, Additional, and Selective — Which Applies to Your Property

Operating an HMO without the right licence is a criminal offence. From 1 May 2026, the civil penalty for unlicensed HMO operation rose from £30,000 to £40,000 per offence under the Renters' Rights Act 2025. But before you can comply, you need to establish which type — or types — of licensing apply to your property. There are three, and each operates differently.

The three types of HMO licensing

1. Mandatory licensing

Mandatory licensing under the Housing Act 2004 applies to any HMO with 5 or more occupants from 2 or more households sharing facilities such as a kitchen or bathroom. The old three-storey rule was removed in October 2018 — the threshold now applies regardless of how many storeys the building has. A single-storey bungalow with five unrelated sharers requires a mandatory HMO licence.

The resident landlord exemption applies: if you live in the property and share it with fewer than two tenants, you do not need a mandatory licence.

2. Additional licensing

Local authorities can designate areas for additional licensing, which extends the requirement to smaller HMOs — typically those with three or four occupants from more than one household. Additional licensing schemes are council-specific and vary widely. Major cities often operate extensive schemes. The duty to check sits with the landlord — being unaware a scheme exists does not discharge the obligation.

3. Selective licensing

Selective licensing applies to all private rentals in a designated area, not just HMOs. If your property is inside a selective licensing zone — often introduced to address antisocial behaviour or low housing demand — you need a licence even for a standard single-let family tenancy. This is postcode-dependent and council-specific.

How to check what applies to your property

Use the HMO licence finder on GOV.UK and cross-check with your local council's property licensing page. Search explicitly for mandatory, additional, and selective schemes at the property's postcode. Do this before tenants move in.

Licence conditions

An HMO licence comes with conditions the landlord must maintain throughout the licence period. Common requirements under Housing Act 2004 standards include:

• Minimum room sizes: sleeping rooms for adults must be at least 6.51m² (single) or 10.22m² (double)
• Annual gas safety check (CP12) by a Gas Safe registered engineer
• Five-yearly EICR by a qualified electrician
• Smoke alarm on every storey and CO alarm in every room with a solid fuel appliance
• Adequate refuse storage for the number of occupants
• Fit and proper person: licence holder and any manager must have no relevant convictions or housing offences

Breach of a licence condition is an offence in itself. Read every condition when you receive a licence.

Applying for a licence

Apply to your local authority. You will typically need a current gas safety certificate, EICR, EPC, fire risk assessment (for properties with common areas), floor plans, and evidence of fit and proper person status. Fees are set locally and vary — typically £500 to £1,500 for a five-year licence, more for larger properties.

Penalties for operating without a licence

Criminal prosecution. Operating an HMO without a required licence is a criminal offence under s.72 (mandatory HMO) or s.95 (selective) of the Housing Act 2004. Conviction carries an unlimited fine and a criminal record.

Civil penalty. As an alternative to prosecution, local authorities can impose a civil penalty of up to £40,000 per offence from 1 May 2026 under the Renters' Rights Act 2025.

Rent repayment orders. A tenant in an unlicensed mandatory HMO can apply to the First-tier Tribunal for up to 12 months' rent back. For a five-bedroom HMO at £700 per room, that is £42,000 — recoverable by the tenants directly, separate from anything the council does.

Licences are not transferable

When you buy a property that was previously licensed, you cannot use the previous owner's licence. Apply for a new licence before tenants move in, or as soon as practicable if you acquire a property with existing tenants.

Tracking HMO compliance with mypy

An HMO licence runs for up to five years, and the compliance conditions — gas, EICR, room sizes — must be maintained throughout. mypy's compliance hub tracks certificate expiry dates and licence renewal across all your properties. Free for up to 2 properties.

Frequently asked questions

My HMO has four tenants from three households. Do I need a licence?

Mandatory licensing requires 5 or more occupants. At four tenants you fall below the mandatory threshold. However, check whether your council operates an additional licensing scheme — many extend licensing to three- or four-person HMOs.

I live in the property and rent to four tenants. Is there an exemption?

The resident landlord exemption under mandatory licensing applies only where the landlord lives in the property and shares with fewer than two tenants. At four tenants, the exemption does not apply and you may need a licence depending on your council's additional licensing scheme.

Can I evict tenants from an unlicensed HMO?

Operating an unlicensed mandatory HMO can complicate possession. Courts will not make a possession order in favour of a landlord who is in ongoing breach of housing law in some circumstances. Apply for any required licence without delay.

What is the minimum room size for an adult in an HMO?

The minimum for a single adult sleeping room is 6.51m²; for a double (two adults), 10.22m². Rooms below these sizes must not be used as sleeping accommodation.

Do I need a fire risk assessment for an HMO?

For HMOs with common areas (shared hallways, stairwells), a fire risk assessment under the Regulatory Reform (Fire Safety) Order 2005 applies to those common areas. For a single self-contained house let to a group of sharers without separate common areas, the position is different — check with your local fire authority or licensing officer.

Sources

1. HMO Licensing in England: 2026 Landlord Guide — LandlordReady
2. HMO Licensing UK 2026 — LetsafeUK
3. HMO licence types and conditions — Shelter Legal England
4. Local authority rules for selective licensing schemes — Shelter Legal England
5. Mandatory vs Additional vs Selective Licensing — HSE Property Checks

---

This article is general guidance, not legal advice. Verify your obligations against current GOV.UK guidance or seek professional advice for your circumstances. Last reviewed 2026-07-06.