HMO Licence Requirements England 2024 – The Landlord’s Complete Guide

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Key Takeaways

• Mandatory licensing applies to all HMOs with 5+ tenants, 2+ households, and 3+ storeys – no exceptions.
• Additional licensing is council‑specific and can catch smaller HMOs (3–4 tenants) – check your local scheme.
• Minimum room sizes are now legally enforced: 6.51 m² for a single adult, 10.22 m² for two adults.
• The “fit and proper person” test looks at your criminal record, past housing offences, and financial standing.
• Fines for non‑compliance can reach £30,000, plus rent repayment orders and banning orders.

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Introduction – Why the Rules Keep Changing

If you’re still using HMO licensing rules from 2020, you’re already behind.

In the last four years, we’ve seen new room‑size laws, tighter “fit and proper person” checks, and a wave of council‑led additional licensing schemes. One landlord in Manchester was fined £18,000 because he didn’t realise his four‑bed HMO now fell under additional licensing.

Find a vetted HMO contractor or fire-safety installer near you →

This article breaks down the 2024 HMO licence requirements in England – what’s mandatory, what’s council‑specific, and what you must do to stay legal. I’ll also give you a simple checklist to determine whether your property needs a licence.

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1. Mandatory HMO Licensing – The Non‑Negotiables

Mandatory HMO licensing applies across all of England. If your property meets the following three tests, you must have a licence.

The Three‑Part Test

1. Five or more tenants – Count everyone aged 16 or over who lives in the property as their main residence.

2. Two or more households – A “household” is a single person, a couple, or a family (including step‑ and foster‑children). If you have three friends sharing, that’s three households.

3. Three or more storeys – This includes basements and attics if they are used as living accommodation. A typical three‑storey Victorian terrace qualifies.

Example: A four‑storey house converted into six bedsits with five unrelated tenants → mandatory licence.

What many landlords miss: Even if you have fewer than five tenants, if the property is designed or adapted for five or more (e.g., six bedrooms), some councils may still treat it as a licensable HMO. Always check.

Properties Exempt from Mandatory Licensing

• Properties managed by a housing association or local authority.
• Student halls of residence.
• Buildings occupied entirely by freeholders or long‑leaseholders.
• Properties where all tenants are members of the same family.

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2. Additional HMO Licensing – The Council Wildcard

Additional licensing is where councils can extend licensing to smaller HMOs that don’t meet the mandatory criteria.

How It Works

• A council can designate any area (or the whole borough) for additional licensing.
• It typically covers HMOs with three or four tenants forming two or more households.
• Some schemes also include section 257 HMOs (converted buildings with non‑self‑contained units).

Which Councils Have Additional Licensing?

As of 2024, over 60 local authorities in England have active additional licensing schemes, including:

• London: Camden, Hackney, Haringey, Lambeth, Newham, Tower Hamlets
• South: Brighton & Hove, Bristol, Oxford, Portsmouth
• North: Manchester, Leeds, Liverpool, Newcastle‑upon‑Tyne

Action step: Visit your council’s website and search “additional licensing scheme”. If you can’t find a clear answer, call the private‑rented‑team – assume nothing.

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3. Room Size Standards – The 2024 Rules

Since October 2018, all licensed HMOs must meet minimum room sizes. These are now rigorously enforced.

Legal Minimums

| Room Type | Minimum Floor Area | Minimum Ceiling Height |

|———–|——————-|————————|

| Single adult (10+ years) | 6.51 m² (70 ft²) | 2.14 m (7 ft) |

| Two adults (10+ years) | 10.22 m² (110 ft²) | 2.14 m (7 ft) |

| Child under 10 years | 4.64 m² (50 ft²) | 2.14 m (7 ft) |

Key points:

• Measure from wall to wall – exclude built‑in wardrobes, cupboards, and alcoves.
• No “temporary” reductions – you can’t argue that a tenant is small or doesn’t mind.
• Storage rooms, kitchens, bathrooms do not count as sleeping accommodation.

What Happens If a Room Is Too Small?

• The council will refuse your licence until you reconfigure the property.
• You cannot let that room to anyone – it must be taken out of use.
• If you let it anyway, you’re committing a criminal offence and risk an unlimited fine.

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4. The “Fit and Proper Person” Test – Are You Eligible?

Every licence holder (and often the managing agent) must pass the “fit and proper person” test. The council will check:

4.1 Criminal Record

• Any unspent convictions for violence, sexual offences, fraud, or discrimination.
• Spent convictions may still be considered if they relate to housing or landlord‑tenant law.

4.2 Past Housing Offences

• Previous breaches of HMO licensing, housing standards, or improvement notices.
• Being listed on the Rogue Landlord Database (even if not publicly available).

4.3 Financial Standing

• Can you afford to maintain the property? Councils may ask for evidence of funds.
• Have you ever been declared bankrupt or had a county‑court judgment (CCJ) related to property?

4.4 Management Competence

• Do you (or your agent) have a track record of managing HMOs?
• Have you ever had a licence revoked or refused?

How to prepare: Gather your basic DBS check (you can apply online for £23), compile your financial statements, and be ready to explain any past issues.

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5. Mandatory Licence Conditions – What You Must Do

Once you have a licence, you must comply with its conditions. The standard conditions include:

5.1 Safety Certificates

• Annual gas‑safety certificate (CP12) – must be provided to the council and tenants.
• Five‑yearly electrical installation condition report (EICR) – now mandatory for all private rentals.
• Fire‑safety measures – working smoke alarms on each floor, fire doors to rooms, and clear escape routes.

5.2 Property Management

• Provide contact details (name, address, phone) to tenants and the council.
• Display the licence summary in a prominent place in the property.
• Limit occupancy to the number of persons stated on the licence.

5.3 Waste Disposal

• Provide adequate bins for the number of tenants.
• Ensure tenants know the collection days.

5.4 Annual Returns

• Some councils require an annual declaration that the property still meets licence conditions.

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6. Penalties for Getting It Wrong

Ignore these requirements and you risk:

• Civil penalty of up to £30,000 per offence (e.g., operating without a licence, breaching a condition).
• Rent repayment order – tenants can claim back up to 12 months’ rent.
• Banning order – you could be prohibited from letting property for up to 5 years.
• Criminal prosecution – unlimited fine and/or a custodial sentence.

Real‑world example: A landlord in Leeds was fined £24,000 for running an unlicensed HMO and ordered to repay £11,000 in rent to the tenants. The total hit: £35,000.

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7. Checklist: Does Your Property Need an HMO Licence in 2024?

Use this quick checklist to decide:

• [ ] Is the property let to 5+ tenants? (Count anyone 16+ living there as their main home)
• [ ] Are there 2+ different households? (Unrelated individuals or families)
• [ ] Is the property 3+ storeys? (Include basements/attics used as living space)
• [ ] If YES to all three → Mandatory licence required.

• [ ] If NO to any of the above, does your council have an additional licensing scheme?
• [ ] Check council website or call private‑rented‑team.
• [ ] If YES → Additional licence required.

• [ ] If NO to both → No HMO licence needed (but still comply with other HMO regulations).

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Next Steps – How to Stay Compliant

1. Determine your licence type using the checklist above.

2. Prepare your documents – floor plans, EPC, gas‑safety certificate, EICR, fire‑risk assessment.

3. Apply early – councils can take 8–12 weeks to process applications.

4. Display your licence and keep a copy of all correspondence.

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Download Your Free Compliance Checklist

HMO licensing is just one piece of the landlord‑compliance puzzle. To make sure you don’t miss any other legal requirements, download our free Property Compliance Checklist.

It covers:

• ✅ HMO licensing
• ✅ Fire‑safety regulations
• ✅ EPC requirements
• ✅ Gas & electrical safety
• ✅ Building regulations

→ [Download the Property Compliance Checklist](https://propertycomplianceuk.co.uk/checklist

Stay legal. Stay profitable.
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