What is an HMO?

A House in Multiple Occupation (HMO) is a property rented to three or more tenants who form more than one household and share facilities like a bathroom or kitchen.

Current Requirements

Mandatory licensing - you must have a licence if your property is:

  • Occupied by 5 or more people forming 2 or more households
  • Sharing facilities (bathroom, toilet, or kitchen)

Additional licensing - many local authorities require licences for smaller HMOs (3-4 people).

Selective licensing - some areas require licences for all private rented properties.

Penalties for Non-Compliance

Current penalties:

  • Unlimited fines - courts regularly impose five-figure penalties
  • Rent Repayment Orders - tenants can claim back up to 12 months' rent
  • Criminal prosecution for serious or repeated breaches
  • Banning orders preventing you from being a landlord

From the commencement date: Rent Repayment Orders increase to 24 months' rent - a significant increase in financial exposure.

Need Help With HMO Licensing?

Rent Repayment Orders are increasing to 24 months' rent from the commencement date. Our HMO expertise ensures you're licensed, compliant, and protected from these significant penalties. Get in touch to learn more.