Accessibility Skip to main content

What is an HMO

Find out what is meant by houses in multiple occupation (HMOs).

What is a House in Multiple Occupation (HMO)

A House in Multiple Occupation (HMO) is a type of residential property where multiple tenants live together but do not form a single household. Here are the key points to understand about HMOs:

  • Multiple Households: An HMO is typically occupied by at least three tenants who form more than one household.
  • Shared Facilities: Tenants share basic amenities such as toilets, bathrooms, and kitchens.
  • Large HMOs: If the property has at least five tenants forming more than one household, it is considered a large HMO and requires a special licence from the local council.
  • Licensing and Standards: Large HMOs must meet specific standards set by the local council to ensure safety and proper living conditions.
For more detailed information visit GOV.UK

Failure to apply for a licence may result in the landlord and letting agent being prosecuted and given a hefty fine. Alternatively, we can issue a civil penalty notice of up to £30,000 for not having the correct licence. 

What we mean by “Household”

Households are defined as follows  

  • Members of the same family living together including:  
    • Couples married to each other or living together as husband and wife (or in an equivalent relationship in the case of persons of the same sex)  
    • Relatives living together, including parents, grandparents, children (and stepchildren), grandchildren, brothers, sisters, uncles, aunts, nephews, nieces or cousins  
    • Half-relatives and foster children will be treated as full relatives.  
  • Domestic staff are also included if they are living rent-free in accommodation provided by the person for whom they are working. 

Check if your property is an HMO.

Management of an HMO 

If your property is an HMO, whether licensable or not, you must comply with the appropriate HMO management regulations at all times.  

What are the HMO Management Regulations? 

Mandatory HMO licensing scheme  

From 1 October 2018 mandatory licensing is no longer limited to certain HMOs that are 3 or more storeys high but include buildings with 1 or 2 storeys.  

Understanding the definition of a House in Multiple Occupation (HMO) under the Housing Act 2004 can be complex.  

If you’re unsure whether your property qualifies, seeking professional advice is a smart move. It’s crucial to know the status of your property to ensure compliance and unlock its full potential.  

Why licensing matters 

Having an HMO (House in Multiple Occupation) licence is important for several reasons: 

  • Running an HMO without a licence is illegal and can lead to big fines and legal trouble. Having a licence keeps you safe from these issues. 
  • Licensing makes sure your property is safe and healthy for tenants. This includes fire safety, enough living space, and clean conditions. 
  • A licensed HMO shows tenants that your property is well-managed and safe. This makes it more attractive to renters. 
  • Following licensing rules helps you avoid fines and legal problems. Well-kept properties can also get higher rents and attract better tenants. 
  • Properly managed HMOs help the community by reducing overcrowding and keeping properties in good condition. 

In summary, obtaining an HMO licence is not just a legal obligation but a smart business move that enhances the safety, and profitability of your property.  

It is a criminal offence to be managing or in control of a House in Multiple Occupation that should be licensed but is not. 

If you don't get a licence, the landlord and letting agent can be taken to court and fined up to £30,000. 

Apply for an HMO licence

If you have any more questions or need further assistance, feel free to ask.

Ensure compliance and enhance your property’s appeal! 

As a licence holder, you must follow our rules for storing and getting rid of household waste. You also need to keep the environment clean and safe for your tenants and the local community. 

Our HMO standards help landlords and developers make and keep HMOs in good condition.  

By following these rules, you can make sure your property is great, attract good tenants, and get the most out of your investment. 

Statutory exemptions 

Purpose-built flats in a block with three or more self-contained flats are exempt. These flats fall under section 257 of the Housing Act. This includes buildings turned into self-contained flats that: 

  • The building was converted into self-contained flats, but the work didn't meet the right building standards then and still doesn't. 
  • Less than two-thirds of the self-contained flats are lived in by their owners. 

See the legislation for full details of all exceptions. 

If your property meets these conditions, it is called a section 257 HMO and might need extra licences. To be sure, you can ask our housing team at for advice based on your property's details. 

Sign up to our newsletter to stay informed about important industry developments. 

Sign up to our landlord newsletter