HMOs require mandatory licensing if they have 5 or more tenants, 3 or more storeys, and 2 or more households. Local authorities can also require additional licensing for HMOs in designated areas or boroughs that are poorly managed and causing problems. To obtain a license, landlords must submit an application and pay a fee. Licenses last up to 5 years and apply only to the specified property. Local authorities review suitability of the property, landlord, and management arrangements and can impose mandatory and discretionary conditions. It is a criminal offence to operate an unlicensed HMO, which can result in prosecution or civil penalties.

1. HMOs that require licenses

2. 2
The 5-3-2 rule
The property must have a license if….
 5 or more tenants and
 3 or more storeys and;
 2 or more households
• Building comprising only self-contained flats are
exempt from mandatory licensing
• A combination of self-contained and
non self-contained accommodation will count as if
all are non self-contained
Ignore this titleMandatory licensing of a HMO

3. 3
• Power for local authority to impose licensing of
all HMO’s (not just those that meet the
mandatory 5-3-2 rule)
• May be in a designated area, or the whole
borough
• Available if significant proportion of HMOs are
poorly managed and causing problems for
residents (S56 Housing Act ‘04)
• Requires 10 week consultation period (and may
require approval from Secretary of State)
Ignore this titleAdditional licensing

4. 4
• Submit application
• Pay a fee – this will vary for each local authority
• 5 years – maximum amount of time that a
license will last for
• License applies to the specified property in the
application – it is not transferable
Ignore this titleHow to obtain a license

5. 5
• Suitability of property – The local authority may
stipulate what amenities such as
bathroom/kitchens need to be provided
• Suitability of persons and management
arrangements – local authority decides if landlord
is a ‘fit and proper’ person
• Mandatory conditions are set (such as
requirement for gas cert, tenancy agreement) and
discretionary conditions (such as certain repairs
must be done, or landlord to attend training course)
Ignore this titleHow to obtain a license

6. 6
• Criminal offence to be a person having control of
or managing a licensable HMO without a license.
Local authority may prosecute or choose to apply
civil penalty of up to £30,000’
• Unable to use S21
• Local authority or occupier can apply for a Rent
Repayment Order (up to 12 months rent repaid)
Ignore this titleOffences and enforcement