Key takeaways
Ref HMO
- HMO status depends on occupation, not the number of contracts.
- Mandatory licensing generally starts at five people in two households.
- Additional and selective schemes need address-specific council checks.
- A property licence does not establish planning lawfulness.
- Monitor licence conditions, occupation changes and renewal dates.
Start with people, households and facilities
An ordinary shared house is generally an HMO when at least three people from more than one household occupy it as their main residence and share facilities such as a kitchen or bathroom. HMO status is not limited to properties advertised as bedsits. A well-presented house occupied by friends can be an HMO just as readily as a building let on individual room agreements. Count the actual occupation, not the marketing description.
Household does not mean tenancy agreement. A couple normally forms one household, while unrelated friends normally form separate households even if they sign together. Family relationships can affect the count. Explain the proposed arrangement accurately to the council, including partners and children where relevant, rather than simply reporting the number of contracts. A change in the people living at the address can change the licensing assessment without any building work.
The Housing Act definitions also cover some converted buildings and arrangements that do not fit the simple shared-house example. Resident landlords, self-contained flats and buildings falling within statutory exceptions require closer examination. If the layout or occupation is unusual, obtain a written view from the council’s private sector housing team or a solicitor. This England guide, checked October 2026, explains the framework without claiming that every shared property has the same licensing route.
Understand mandatory HMO licensing
Mandatory licensing generally covers HMOs occupied by five or more people forming two or more households where facilities are shared, subject to the statutory building tests and exceptions. The old three-storey threshold no longer applies. A two-storey house can therefore need a mandatory licence. For ordinary shared accommodation, crossing from four to five occupants is an important trigger to review before agreeing to an extra person moving in.
The detail matters for flats and mixed buildings. Government guidance explains, for example, the exclusion from mandatory licensing for certain purpose-built flats in blocks containing three or more self-contained flats. An exclusion from mandatory licensing is not an assurance that additional licensing cannot apply. Converted flats and buildings containing both self-contained and non-self-contained accommodation should be described to the council with a floor plan, not classified from a short online headline.
Mandatory licensing is a national requirement administered by the local housing authority. You need a separate licence for each relevant HMO, and a licence can last no more than five years. The council can grant a shorter period where appropriate. Check the named holder, maximum occupation, expiry date and conditions rather than assuming that evidence of an old application means the current property and manager are authorised indefinitely.
Check for an additional licensing designation
Additional licensing lets councils bring specified HMOs outside mandatory licensing into a local scheme. It often affects smaller shared homes occupied by three or four people, but the actual designation defines the properties covered. Some schemes also address particular converted-building HMOs. Do not treat the phrase additional licensing as a uniform national rule covering every three-person home: the local document and statutory exceptions determine the answer.
In London, check the council site for the exact address, designation boundary, commencement date and description of the relevant HMO categories. A scheme may cover only part of an authority’s area or may be replaced when an earlier designation ends. Maps are useful, but read the designation and explanatory guidance as well. An announcement about consultation is not the same as a scheme that has been made and brought into operation.
Keep the council page or designation reference with a dated note of your check. Repeat the check when buying, taking over management, changing occupation or approaching a scheme expiry. This guide deliberately does not list individual borough schemes: a static borough summary can become misleading when boundaries or dates change. Ask the council to resolve an ambiguous address or building category before relying on an exemption from applying.
Separate selective licensing from HMO licensing
Selective licensing concerns privately rented housing in a designated area and is not limited to shared houses. A single-family letting can be included, depending on the designation and statutory exceptions. That is why an answer of not an HMO does not complete a London property licensing check. Review both the occupation-based HMO requirements and the address-based selective licensing position before deciding that no property licence is needed.
Properties required to be licensed under Part 2 of the Housing Act, covering mandatory or additional HMO licensing, are generally excluded from Part 3 selective licensing. The usual approach is therefore not to buy three overlapping licences for the same letting. However, a smaller HMO outside Part 2 licensing may fall within selective licensing. Ask the council which application route applies if its online checker produces an unclear result.
Selective licensing does not convert an ordinary family home into an HMO, and it does not settle planning use. It is a distinct property management framework with its own licence conditions. Read the council’s current conditions and application requirements rather than copying a previous HMO application. If the household changes later, reassess whether the property has moved into a different licensing category and seek advice about the transition.
Carry out a reliable London address check
Use the full property address and postcode, including the flat number, to identify the correct council and licensing area. Record the intended number of occupants, household relationships, shared amenities and building type. Check mandatory licensing first, then additional licensing and selective licensing as relevant. For a building containing several flats, establish whether the council needs information about an individual dwelling, the converted building or both.
Treat a seller’s licence or an agent’s statement as evidence to investigate, not a substitute for checking. Ask for the full licence, conditions, floor plans, correspondence and outstanding notices. Licences are not transferable, so a purchaser should establish the application requirements for the incoming ownership and management arrangement. If the property is already occupied, take advice before completion about avoiding a gap in the appropriate licensing position.
Create a concise written conclusion explaining which scheme applies, which document supports that conclusion and what still needs clarification. Where the council has given address-specific advice, retain the email and any assumptions on which it was based. Do not generalise that answer to another property on the same street. Different building forms, occupation levels or scheme boundaries can produce different results even for neighbouring addresses.
Prepare the application and management evidence
The application normally needs ownership and management details, the proposed licence holder, occupation information and evidence about the property. Councils publish their own document lists and fees. Gather accurate plans showing room uses and dimensions, relevant safety reports and details of people with an interest in the property. Check that the application reflects what exists or is genuinely proposed, rather than a more favourable layout that has never been built.
The council assesses whether the proposed licence holder and manager are fit and proper and whether management arrangements are satisfactory. Discuss who will handle repairs, emergency calls, inspections and access before naming an agent. A licence condition addressed to the holder does not become harmless because a contractor was expected to do the work. Put responsibilities, reporting routes and authority to approve urgent expenditure into the management agreement.
Submit the required information and payment through the council’s specified route and retain an acknowledgement. Do not assume that starting an online form, requesting a quotation or sending incomplete documents amounts to a duly made application. A valid application can have important legal effects while a decision is pending, but its status is fact-sensitive. Obtain council confirmation or solicitor advice rather than promising tenants that any submission automatically authorises occupation.
Read occupancy limits and property conditions
A licence specifies permitted occupation and may include works or management conditions. National sleeping-room conditions for licensed HMOs include at least 6.51 square metres for one person aged over 10, 10.22 square metres for two people aged over 10, and 4.64 square metres for one child under 10. Space below 1.5 metres ceiling height is excluded. These are minimum floors, not universal approval of any room reaching that area.
Councils can apply higher local standards when assessing suitability, and shared living space, kitchens, bathrooms and the overall layout remain important. A room that passes the national area threshold may still be unsuitable for the proposed occupation. Obtain the authority’s current amenity and space standards and measure the actual usable layout. Do not add a second bed or describe a box room as a bedroom without reviewing the licence and wider requirements.
Fire precautions, waste arrangements and ongoing maintenance can also appear in the conditions. Keep a condition tracker with each requirement, deadline, responsible person and completion evidence. Where a condition seems unclear or impossible to meet, seek advice promptly about clarification or the relevant challenge route. Ignoring it while waiting for a convenient refurbishment date is not a substitute for resolving the issue with the council.
Keep planning and safety checks separate
A property licence does not grant planning permission. Small HMOs commonly fall within planning use class C4, covering three to six occupants in the relevant shared-house arrangement. A change from a C3 dwelling to C4 can have permitted development rights, but an Article 4 direction can remove that route. Check the planning authority’s address-specific map, direction and effective date independently of the licensing scheme map.
Larger shared houses generally fall outside C4 into sui generis use, and changes of use need planning consideration. Existing permissions, conditions and evidence of established lawful use can be decisive. An old licence is not proof of planning lawfulness. Ask the planning team or a planning professional to review the history, and involve a solicitor where a purchase depends on a seller’s claim that the existing HMO use is lawful.
Likewise, licensing does not replace ongoing safety and management duties. HMO management regulations address matters including escape routes, installations, common parts and waste provision, including in HMOs that are not licensable. Fire risk assessment and suitable precautions need attention to the actual building. Maintain separate records for licensing, planning, fire safety and routine repairs so that one certificate is never mistaken for approval of the whole property.
Manage renewals, changes and enforcement risk
Diary the licence expiry well in advance and use the council’s renewal procedure before it runs out. Review ownership, management, occupation and completed works when preparing the renewal rather than resubmitting outdated details. Changes may require notification, a variation or a new application depending on the circumstances. Check the conditions and contact the authority before assuming that changing an agent, increasing numbers or rearranging bedrooms has no effect.
Operating without the required licence or breaching conditions can lead to enforcement, and rent repayment proceedings may also be relevant. The available remedies and procedural rules depend on the facts and the law in force. Obtain prompt solicitor advice if a council contacts you about a suspected offence or a tenant raises a claim. Do not rely on historic penalty figures or informal assurances from a previous manager.
Peachtree Maintenance can help assemble property information, coordinate inspections and organise works identified through the licensing process. The council determines the licensing requirements and application outcome; planning and legal disputes need the relevant professional. A reliable system combines an address-level scheme check, an accurate application, a condition tracker and ongoing maintenance. Revisit those records whenever occupation or local designations change, not only when a licence is due for renewal.
Frequently asked questions
01Do student sharers count as an HMO?
Students sharing a privately rented house can fall within the HMO rules. Do not assume that an exception for some educational accommodation also covers a privately owned student house.
02Can a live-in landlord use this guide without further checks?
Resident-owner arrangements can fall within statutory exceptions depending on the facts. Tell the council who lives there and how the accommodation is shared before applying the ordinary shared-house test.
03Does a licence fee cover building work?
The council’s application fee is separate from the cost of any required improvements. Budget for surveys, works and ongoing management as well as the published fee.
04What if the council has not inspected yet?
The absence of an inspection does not confirm the property’s suitability or remove application responsibilities. Ask about the status of your application and continue addressing known safety issues.
05Can I rely on a national property portal’s licensing badge?
Use it only as a prompt for checking. Verify the current council record, named licence holder and property details before drawing conclusions.
Sources
About the author
Peachtree Maintenance compliance team
Written by the team that arranges certificates, inspections and repairs for Peachtree Maintenance clients. General information for England, not legal advice. Last reviewed 20 October 2026.