Proppy

Mandatory Licensing

The national requirement for HMO landlords to hold a council licence for properties with 5 or more occupants forming 2 or more households.

Mandatory HMO licensing applies across England to all houses in multiple occupation with 5 or more persons forming 2 or more households, occupying the whole or part of a building as their sole or main residence.

The mandatory licensing regime requires landlords to apply to their local council for a licence, which is granted subject to the property meeting minimum standards and the landlord being deemed a "fit and proper" person. Licences last 5 years and must be renewed.

Conditions attached to a mandatory HMO licence typically include: - Compliance with minimum room size standards (6.51m2 for a single adult bedroom) - Adequate fire safety measures (fire doors, interlinked alarms, emergency lighting) - Regular gas safety certificate and EICR - Adequate provision of cooking and washing facilities for the number of occupants - No overcrowding

The penalty for operating a mandatory licence HMO without a licence is a fine of up to £30,000 per property, and the local authority can issue a Rent Repayment Order requiring the landlord to repay up to 12 months of rent to the tenants.

Some councils also operate "additional licensing" schemes that require licences for smaller HMOs (3-4 persons) in designated areas. These are in addition to, not instead of, mandatory licensing.

Related terms
Referenced in
Back to glossaryBrowse investment guides