For property investors and landlords in the UK, Houses in Multiple Occupation (HMOs) can be an excellent way to boost rental yields. However, with this type of property investment comes the responsibility of ensuring your property meets specific standards—and in most cases, that means obtaining an HMO licence.

If you’re considering renting out an HMO, understanding the process of getting an HMO licence is essential. This guide will take you through everything you need to know, from the basics of HMOs to how you can apply for an HMO licence in the UK.

What is an HMO?

A House in Multiple Occupation (HMO) is a property rented out by at least three people who aren’t from the same household (i.e., family) but share facilities like the bathroom and kitchen. Common examples include shared houses, student accommodations, and flat shares.

HMO properties are often more complex to manage due to the number of tenants and shared facilities, and they must meet specific health, safety, and space requirements. In the UK, most HMOs require a licence to operate legally, and failure to secure one can lead to significant fines.

When Do You Need an HMO Licence?

Generally, you’ll need an HMO licence if your property meets these criteria:

• The property is rented to five or more people who form more than one household.
• Tenants share facilities like the bathroom, kitchen, or toilet.
• The property is a three-storey building (though this requirement can vary by council).

This is often called a “mandatory” HMO licence. However, local councils in the UK may have additional requirements through “additional licensing schemes,” which apply to smaller HMOs. Always check with your local authority to see what regulations apply to your property.

Why Do You Need an HMO Licence?

An HMO licence is crucial for ensuring that your property is safe and suitable for multiple tenants. Local councils conduct inspections and require landlords to meet certain standards. With an HMO licence, you demonstrate your commitment to tenant safety and property standards, including:

• Fire safety (fire doors, alarms, and emergency lighting)
• Adequate facilities for the number of tenants (bathrooms, kitchens, and communal areas)
• Proper waste management
• Space and room size minimums

Not only does an HMO licence ensure compliance with legal standards, but it also protects landlords from hefty fines that can result from operating an unlicensed HMO.

How to Get an HMO Licence in the UK: Step-by-Step Guide

Step 1: Check Local Requirements

Each council in the UK has its own process and requirements for HMO licensing. Start by contacting your local council or checking its website for information on its specific HMO licensing rules. This initial step can save time and ensure you’re clear on the standards your property needs to meet.

Step 2: Ensure Your Property Meets HMO Standards

Before applying, ensure your property meets HMO requirements, especially around fire safety, space, and facilities:

Fire Safety: Install fire doors, smoke alarms, and emergency lighting in communal areas and ensure they comply with council standards.

Room Sizes: Each bedroom should meet the minimum room size for sleeping, which is generally 6.51 square meters for one adult. However, this can vary by council, so check with yours for specific standards.

Sanitary Facilities: Provide adequate bathrooms and kitchen facilities based on the number of tenants. Your council may specify the required number and layout of facilities.

Conducting a property audit or hiring an HMO consultant can help you identify areas that may need upgrading to meet compliance.

Step 3: Gather Documentation

You’ll need to submit several documents when applying for an HMO licence, including:

• Proof of ownership or mortgage
• Gas safety certificate (renewed annually)
• Electrical safety report (EICR), less than five years old
• Fire safety risk assessment
• Smoke alarm certificate
• PAT certificate
• Energy performance certificate (EPC)
• Floor plans of the property
• Proof of fire alarm maintenance and emergency lighting checks

Ensure your documentation is up to date to avoid delays.

Step 4: Submit Your HMO Licence Application

Once your property meets all standards, you can submit your application online or by post, depending on your council’s preferences. Be prepared to pay an application fee, which varies by council but typically ranges between £500 and £1,000. Some councils may also charge an inspection fee.
After submission, your council will assess your application and may conduct an inspection to verify that the property meets all HMO standards.

Step 5: Address Any Issues Raised During Inspection

In many cases, councils will conduct an on-site inspection of your property. If issues are identified, you’ll be asked to address them before the licence is granted. Common issues can include inadequate fire safety measures, insufficient facilities, or lack of regular maintenance records.

Step 6: Wait for Approval and Receive Your Licence

After inspection and successful verification, the council will issue your HMO licence, which usually lasts for up to five years. Keep in mind that you’ll need to renew your licence before it expires. Operating an HMO without a licence can result in fines of up to £30,000 or even a criminal record.

Step 7: Maintain Your HMO Licence Standards

Once licensed, you’re responsible for maintaining the standards that allowed you to obtain the licence. Conduct regular maintenance, keep your records updated, and address tenant complaints swiftly.

How Long Does it Take to Get an HMO Licence?

The application process for an HMO licence can take several weeks to a few months, depending on council workload and whether your property meets all requirements. Applying well before you intend to rent out the property as an HMO is advisable, as operating without a licence can have serious legal and financial repercussions.

HMO Landlord Certificates

Common HMO Licence Mistakes to Avoid

Here are a few pitfalls that landlords often encounter in the HMO licensing process:

• Ignoring Council Requirements: Each council has its own rules, so skipping this step can lead to delays and additional costs.
• Inadequate Documentation: Missing or outdated documentation can result in a rejected application.
• Failing to Address Fire Safety: Fire safety is a top priority for councils, so ensuring compliance with fire regulations is crucial.
• Lack of Regular Maintenance: Remember that an HMO licence isn’t a “set it and forget it” permit. Ongoing property maintenance is essential.

In Closing: Get Your HMO Licence Right the First Time

Securing an HMO licence can seem daunting, but the benefits of having a legally compliant and well-maintained property far outweigh the risks of skipping this process. With careful preparation and an understanding of your council’s requirements, you can navigate the HMO licensing process smoothly and ensure a safe and profitable property for years to come.

Following the steps in this guide will help you understand how to get an HMO licence in the UK, ensuring your property is compliant and your tenants safe. If you’re ever uncertain, contacting your local council or consulting an HMO expert can provide additional support.

Further Reading