Mandatory HMO Licensing
Mandatory licensing applies to any HMO occupied by five or more people forming two or more separate households who share facilities. This requirement applies across all of England and is administered by the local housing authority. A licence is required for each individual property — you cannot hold a single licence for multiple properties.
Additional Licensing Schemes
Local authorities can designate additional licensing areas where smaller HMOs (typically those with 3 or 4 occupants) also require a licence. Many councils in Staffordshire and Cheshire operate additional licensing schemes. Check with your specific local authority before assuming your property does not need a licence.
Applying for an HMO Licence
Apply to the local housing authority where the property is located. Most councils accept online applications. You will need to provide: property address and details; floor plan showing room sizes; evidence of gas and electrical safety certificates; EPC; details of the proposed licence holder and manager; and a fire safety plan.
Licence Conditions
An HMO licence will be granted subject to conditions. These typically include maximum number of occupants, room size requirements, fire safety standards, management standards, maintenance obligations, and record-keeping requirements. Conditions may vary between councils.
Fit and Proper Person Test
The licence holder and any proposed manager must pass a "fit and proper person" test. This means they must have no relevant criminal convictions, no history of unlawful discrimination, and no history of poor management or breaches of landlord obligations.
Penalties for Non-Compliance
Operating an unlicensed HMO is a serious offence. Local authorities can impose civil penalties of up to £30,000 per unlicensed property, prosecute in the magistrates' court (unlimited fines), issue a Rent Repayment Order (requiring repayment of up to 12 months' rent), and prohibit the landlord from receiving rent. Axient Housing ensures all managed properties are correctly licensed.