HMO Licence: How to Apply, Costs and Requirements

A practical guide to applying for an HMO licence in the UK - what you need, how much it costs, and how long it takes.

If you are letting a property as a house in multiple occupation, you are likely to need an HMO licence from your local council. This guide walks you through the application process, costs, required documents, and what to expect.

Do You Need an HMO Licence?

You need a mandatory HMO licence if your property is occupied by 5 or more people from 2 or more separate households who share facilities such as a kitchen or bathroom. This applies to all properties in England, regardless of the number of storeys.

You may also need a licence under your council's additional licensing scheme (covering smaller HMOs with 3-4 occupants) or selective licensing scheme (covering all private rented properties in certain areas). Check your local council's website to see which schemes are in force.

Who Can Apply?

The licence application must be made by the person who has control of or manages the property. This is usually:

• The property owner (if self-managing)
• The managing agent (on behalf of the owner)
• The leaseholder responsible for day-to-day management

The applicant must pass a "fit and proper person" test. The council will check for unspent criminal convictions, previous breaches of housing or landlord legislation, and whether the applicant has had a licence revoked. They may also check any managing agents named on the application.

What You Need to Apply

While requirements vary by council, most will ask for:

• Floor plans showing room sizes, layouts, and the location of fire safety equipment
• Gas safety certificate (current, within 12 months)
• Electrical installation condition report (EICR) (current, within 5 years)
• Portable appliance testing (PAT) certificates for any electrical items provided
• Energy performance certificate (EPC) - minimum rating E for rented properties
• Fire risk assessment
• Proof of ownership or management authority
• Details of the proposed manager (if not the owner)
• Declaration of any criminal convictions or previous licence revocations

How Much Does It Cost?

HMO licence fees vary significantly by council. Typical ranges:

Some councils charge a single fee; others split it into two parts - an initial application fee and a second fee payable when the licence is granted. Fees are per property and are non-refundable, even if the application is refused.

The Application Process

1. Submit your application - most councils accept online applications through their website or a third-party portal. Some still accept paper forms
2. Pay the fee - the initial fee (or full fee) is payable at submission
3. Council assessment - an officer will review the documents and may arrange a property inspection. Inspections typically take 4-8 weeks to schedule
4. Conditions and improvements - if the property does not meet standards, the council will specify works required. You will usually be given a deadline (e.g. 3-6 months) to complete them
5. Licence granted - once the council is satisfied, the licence is issued. It lists any conditions you must comply with throughout the licence period

How Long Does It Take?

Processing times vary widely. Some councils issue licences within 6-8 weeks; others take 6 months or more, especially if they have a backlog. During the processing period, you are generally considered to have a "pending application" and can continue letting the property, provided you submitted the application before starting to let.

If you were operating without a licence before applying, the council may still take enforcement action for the period you were unlicensed.

Licence Duration and Renewal

HMO licences are typically granted for 5 years, though some councils issue shorter licences (1-3 years) where there are concerns about the property or the landlord. You must apply to renew before the existing licence expires - most councils recommend applying at least 3 months before expiry.

If your licence expires and you continue letting without renewal, you are operating an unlicensed HMO and can face penalties.

Common Licence Conditions

Conditions attached to an HMO licence typically include:

• Maximum number of occupants per room and overall
• Maintaining fire safety equipment (alarms, extinguishers, fire doors)
• Keeping shared areas clean and in good repair
• Providing adequate waste and recycling facilities
• Supplying written tenancy agreements
• Providing references for tenants to the council on request
• Notifying the council of any change in management arrangements

What Happens If You Don't Get a Licence?

Operating an unlicensed HMO is a criminal offence. Councils can:

• Prosecute - with unlimited fines on conviction
• Issue civil penalty notices of up to £30,000
• Grant rent repayment orders - tenants can reclaim up to 12 months' rent through a tribunal

Beyond penalties, an unlicensed HMO means you cannot use Section 21 to evict tenants - the courts will not grant a no-fault eviction if the property requires but lacks a licence.

Planning Permission and HMO Licensing

Remember that HMO licensing and planning permission for HMOs are separate requirements. You may need both, and having one does not satisfy the other. Always check the planning position as well as the licensing position before converting a property.