Regulation
HMO licensing: mandatory, additional, selective (which one applies to you?)
The 5-occupier mandatory rule, what changes for additional schemes and the £30k fine you really want to avoid.
team havelo
1 April 2026 · 6 min read
An HMO (House in Multiple Occupation) is, broadly, a property let to 3 or more unrelated people sharing facilities. There are 3 licence regimes you might fall under:
1. Mandatory HMO licence
- 5 or more people from 2 or more households.
- Anywhere in England.
- No size threshold (the old "3 storeys" rule was removed in 2018).
- Each council sets its own fee (typically £500-£1,500 for 5 years).
2. Additional licensing
A council can declare a borough-wide or area-wide additional scheme that catches smaller HMOs (e.g. 3+ tenants from 2+ households). Check your council's website.
3. Selective licensing
Catches non-HMO single-family lets in designated areas. Used by councils where they want to drive standards up across the board.
Penalties
- Operating an unlicensed HMO when one is required: civil penalty up to £30,000 per offence, plus criminal prosecution.
- Tenants can apply for a Rent Repayment Order to recover up to 12 months of rent.
What to do
- Check your council's website (search "[your council] HMO licensing").
- If unsure, email the council's housing team with the property address. They'll tell you in writing.
- Apply early; some councils take 6+ months.
Track in havelo
The Compliance module includes an HMO licence type with expiry tracking. Set it up once and let havelo remind you 90 days before renewal (HMO renewals can take a long time, so we trigger earlier than other compliance items).
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