Do I Need an HMO Licence? 2026 Rules for London Landlords

If you rent a property to five or more people from two or more households, you will usually need a mandatory HMO licence (GOV.UK).

But that is only the first rule.

A property with just three or four occupiers can also need an HMO licence if the local council operates an additional licensing scheme. And in London, those schemes can change from borough to borough — and sometimes from one ward or street to the next.

So the useful question is not simply:

“Do I have five tenants?”

It is:

“Is my property an HMO, how many people and households occupy it, and what licensing scheme applies at this exact address?”

Get those three things right and the answer becomes much clearer.

Do I need an HMO licence? The quick answer

For a typical shared house or flat in England:

The national definition and licensing rules distinguish between being an HMO and needing an HMO licence. An ordinary HMO generally starts at three occupiers from more than one household, while mandatory licensing normally starts at five occupiers from two or more households (GOV.UK landlord guide).

That distinction causes a lot of confusion.

A three-person house share can be an HMO without needing a mandatory licence.

It can still need an additional HMO licence, however, if the council has introduced a local scheme.

Key takeaway

• Five or more occupiers: check mandatory HMO licensing.
• Three or four occupiers: check additional HMO licensing.
• One household or only two sharers: HMO licensing will not normally apply, but selective property licensing still might.

First question: is the property actually an HMO?

An HMO is not simply a house with lots of bedrooms.

For the usual shared-house test, a property is an HMO where at least three people occupy it as their main residence, they form more than one household, and basic facilities such as a kitchen, bathroom or toilet are shared (Housing Act 2004).

The number of tenancy agreements does not decide whether a property is an HMO.

Neither does the number of bedrooms.

What matters is who actually occupies the property and how they live there.

What counts as a household?

This is where many landlords go wrong.

A household does not mean everyone who happens to live at one address.

For HMO purposes, members of the same family normally form one household. A married or cohabiting couple is also one household. Someone living by themselves forms their own household.

Here are some practical examples:

Notice the family example.

Five people do not automatically mean an HMO.

Five members of the same family living as one household will not usually create an HMO simply because five people live there.

On the other hand, a couple sharing with one unrelated friend can create an HMO with only three occupiers.

That is why counting households matters as much as counting heads.

Do children and students count?

Do children count towards HMO occupancy?

Yes.

Children living at the property count as occupiers when determining HMO occupation and licensing thresholds. Councils’ current licensing guidance expressly includes children when applying the three- and five-person tests.

So imagine a couple living with two children and an unrelated adult.

You have five people.

But you also need to consider how many households they form and whether the property meets the other HMO tests. Do not assume that the number of adult tenants on the tenancy agreement tells you the answer.

Licensing is concerned with occupation, not just signatures.

Do students count as occupying the property?

Yes.

Students living at a property while undertaking full-time further or higher education are treated as occupying it as their only or main residence for HMO purposes. So the classic five-student house share is not outside HMO legislation simply because the students also have family homes elsewhere.

When is a mandatory HMO licence required?

Mandatory HMO licensing applies across England.

In the usual shared-house case, you will normally need a mandatory HMO licence where:

• five or more people occupy the property;
• those people form two or more households; and
• facilities such as a toilet, bathroom or kitchen are shared or lacking.

The government confirms that the mandatory occupation threshold is five or more people from two or more separate households (GOV.UK).

Storey count is no longer the licensing shortcut

This is an old rule that refuses to die quietly.

Before October 2018, the mandatory licensing regime was much more closely associated with larger multi-storey HMOs under the previous 3-storey test.

That test was abolished.

Since 1 October 2018, mandatory HMO licensing in England has extended to qualifying one- and two-storey HMOs as well.

A two-storey terraced house occupied by five unrelated professionals can therefore require exactly the same mandatory HMO licence check as a taller shared house.

Number of storeys is no longer the shortcut it once was.

Do I need an HMO licence for three tenants?

Possibly.

Three people from more than one household sharing facilities will normally make the property an HMO.

But three occupiers are below the national mandatory licensing threshold.

Whether a licence is required therefore depends mainly on whether your council has introduced an additional HMO licensing scheme covering that type of property and address.

For example, three unrelated professionals sharing a flat can be:

• An HMO? Yes.
• Mandatory licence? No.
• Additional licence? Possibly.

That last answer is the reason you need to check the council rather than stopping once you discover there are fewer than five tenants.

Do I need an HMO licence for four tenants?

Again, possibly.

Four occupiers from two or more households are normally below mandatory HMO licensing.

But they can fall inside a local additional licensing scheme.

This is particularly important in London, where additional licensing is common and scheme coverage changes over time.

HMO KIT’s current London registry shows additional licensing in 27 of 33 boroughs (September 2026 snapshot).

The same four-person HMO might require a licence in one borough while a similar property elsewhere does not. It is the property address, current designation and occupation that decide the answer.

Do I need an HMO licence for five tenants?

In a conventional shared house, usually yes.

If five or more people from at least two households occupy the property and share basic amenities, the property will normally fall within mandatory HMO licensing.

For example:

Five unrelated professionals rent a house together and share one kitchen and two bathrooms.

That is the straightforward mandatory licensing scenario.

It does not matter whether they each rent a separate room or all five sign the same tenancy agreement.

The actual occupation of the property is what matters.

There are, however, some less common building-specific exceptions, particularly involving certain purpose-built flats, so unusual flats and converted buildings deserve a closer check before relying solely on the five-person rule.

What is additional HMO licensing?

Additional licensing lets a local council extend HMO licensing to properties that fall outside mandatory licensing.

The obvious example is the three- or four-person HMO.

A council may introduce an additional scheme for an entire borough or only a defined area. It may also include particular types of HMOs that fall outside mandatory licensing.

This is why the question “Do three tenants need an HMO licence?” has no single London-wide answer.

The correct answer is: they can. Check the current additional licensing scheme for the exact address.

Why London landlords need to be particularly careful

London does not have one licensing regime administered by one authority.

The 32 London boroughs plus the City of London administer property licensing locally, and councils regularly introduce, renew, amend and replace additional licensing schemes.

HMO KIT maintains borough-level licensing data across all 33 London local authority areas and records whether additional and selective schemes are active, their coverage, relevant dates and associated standards. On the current snapshot, selective licensing appears in 20 boroughs.

That makes licensing something worth checking at three moments: before buying, before letting and whenever occupancy changes.

Does one joint tenancy stop a property being an HMO?

No.

You cannot avoid HMO status by putting everyone on one tenancy agreement.

Likewise, separate room agreements do not automatically make a property an HMO.

The legal test looks at occupation and households, not how many tenancy documents exist.

So:

Five friends + one joint tenancy can still be a mandatory HMO.

Five friends + five individual tenancies can also be a mandatory HMO.

The paperwork is different. The people living there are not.

What if a tenant’s partner moves in?

This is exactly the sort of change that can turn a straightforward rental into an HMO — or move an existing HMO across a licensing threshold.

Imagine two unrelated friends rent a two-bedroom flat.

Initially there are two occupiers, so the usual HMO definition is not met.

Six months later, one tenant’s partner moves in permanently.

You now have three occupiers from two households.

The property may have become an HMO. If an additional licensing scheme covers the address, it may now need a licence too.

Likewise, a four-person HMO can move into mandatory licensing territory if a fifth permanent occupier moves in.

An occasional overnight visitor is different from someone actually moving in. Government HMO guidance distinguishes temporary visitors from permanent additional occupation when discussing licensed occupancy.

I live in the property. Do I need an HMO licence for lodgers?

Possibly, but resident landlords have an important exemption.

An owner-occupier living in their own home with members of their household and no more than two lodgers will normally fall within an HMO exemption.

Once you have three or more lodgers, you can no longer simply rely on that exemption.

At that point you need to check whether the property is an HMO and whether mandatory or additional licensing applies. Do not confuse the Rent a Room tax rules with HMO licensing either — they are separate regimes with different tests.

Self-contained flats and Section 257 HMOs

A self-contained flat occupied as an HMO can fall within mandatory licensing in some circumstances.

However, the 2018 mandatory licensing rules exclude certain purpose-built self-contained flats situated in blocks containing three or more self-contained flats from mandatory licensing. Local additional licensing can still bring those flats into licensing.

By contrast, an HMO flat above a shop or a flat within a converted building can fall within mandatory licensing where the applicable tests are satisfied.

Section 257 HMOs are another reason generic online checklists can get landlords into trouble. Broadly, these are certain buildings converted into self-contained flats where the conversion did not meet the relevant building standards and the required proportion of flats is not owner-occupied.

Mandatory HMO licensing does not automatically apply to a Section 257 converted block simply because it is a Section 257 HMO. However, councils can bring Section 257 HMOs into an additional licensing scheme.

If you own a converted Victorian house containing several flats, this is not an area where a five-person flowchart alone is enough.

Does an HMO always need a licence?

No.

This is probably the single most useful distinction in this guide.

Not every HMO is a licensable HMO.

Three unrelated people sharing a house can make it an HMO. If there is no additional licensing scheme covering it, it may not need an HMO licence. But it is still an HMO.

That matters because HMO management requirements can continue to apply even where licensing does not (Management Regulations 2006).

No licence required does not mean no HMO rules apply.

Could I need a property licence even if the house is not an HMO?

Yes.

That is where selective licensing comes in (GOV.UK selective licensing guidance).

Selective licensing can require other privately rented homes to be licensed within designated areas, including ordinary properties occupied by a single family.

So this scenario is perfectly possible: a couple and their two children rent a flat, form one household, and it is not an HMO — but the flat is inside an active selective licensing area, so a property licence may still be required.

Deadlines matter too. Tower Hamlets’ selective scheme in Weavers, Whitechapel and Banglatown & Spitalfields ends on 30 September 2026 — and no new applications can be made after that date. See the Tower Hamlets selective licensing deadline guide if your property sits in those wards.

For the full distinction, see HMO KIT’s Mandatory vs Additional vs Selective Licensing guide.

A 60-second HMO licence test

1. How many people actually live there? Count occupiers, not simply named tenants. Children count too.
2. How many households do they form? A couple is one household. A family is generally one household. Unrelated individuals usually form separate households.
3. Are there three or more occupiers from more than one household? If no, the conventional HMO test is unlikely to be met.
4. Are basic amenities shared or lacking? Think kitchen, bathroom and toilet.
5. Are there five or more occupiers? If yes, investigate mandatory HMO licensing immediately. If there are only three or four, investigate additional licensing.
6. Is it a flat or converted building? Purpose-built flats and Section 257 HMOs can have different treatment.
7. Is there an additional licensing scheme? Check the exact address, not simply the borough name.
8. Could selective licensing apply instead? This matters particularly where the property is not an HMO.
9. What is the planning status? Check planning separately — a licence is not planning permission.

HMO licensing and planning permission are different

An HMO licence regulates issues such as occupancy, management, suitability and housing standards.

Planning law asks whether the property can lawfully be used in that way.

A small HMO occupied by three to six unrelated people generally falls within planning Use Class C4 (Use Classes Order). Moving from a normal C3 dwellinghouse into C4 can normally be permitted development, but an Article 4 Direction can remove that right. Larger HMOs with more than six occupiers generally fall outside C4.

In London, use HMO KIT’s Article 4 Checker separately from the HMO Licence Checker.

Never treat a licence as evidence that the planning position has automatically been regularised. More: Article 4 HMO London.

What requirements do I have to meet to get an HMO licence?

A licence is not simply a registration fee.

The council must consider whether the property is suitable for the proposed number of occupiers and whether the licence holder and manager satisfy the relevant requirements.

One particularly important requirement is bedroom size. For Part 2 HMO licences in England, the statutory minimum sleeping-room areas include:

Areas where the ceiling is below 1.5 metres are excluded when calculating the relevant floor area. Councils can require standards above the statutory minimum.

Before buying or increasing occupancy, check HMO KIT’s Room Size Checker and the relevant London HMO Standards page.

What documents are usually needed for an HMO licence?

Exact requirements vary between councils, but applications commonly involve evidence covering electrical safety, gas safety where applicable, fire precautions, floor plans, property and management details and occupancy.

Use the HMO Licence Documents Checklist, then check the borough-specific requirements before submitting.

How much does an HMO licence cost in London?

There is no single London HMO licence fee.

Every borough sets its own charges, and fees may also vary between mandatory, additional and selective licensing.

Examples from HMO KIT’s September 2026 London fee registry:

The council fee is also separate from the cost of making the property compliant — fire doors, alarms, electrical remedials, floor plans and amenity upgrades can dwarf the licence itself.

For current figures, use HMO Licence Cost London 2026 rather than putting a generic estimate into your spreadsheet.

How long does an HMO licence last?

A Part 2 HMO licence can run for up to five years.

Councils can issue shorter licences depending on the circumstances. A separate licence is required for each property.

And one detail matters enormously when buying an existing HMO: an HMO licence cannot simply be transferred to the buyer.

Section 68 of the Housing Act 2004 states that a licence may not be transferred to another person.

So if an estate agent says “Don’t worry, it already has a five-year HMO licence,” your next question should be: “Whose licence?”

A seller’s licence does not simply become yours at completion.

Buying an HMO? Check these things before exchange

The licensing check should happen before you value the property as an HMO investment — not afterwards.

1. Confirm the current number of occupiers and households.
2. Check the council’s property-licensing scheme for the exact address.
3. Search the council’s public HMO licence register.
4. Check the licence’s permitted occupancy.
5. Check its expiry date.
6. Confirm who holds the licence.
7. Measure the proposed bedrooms.
8. Check local kitchen and bathroom standards.
9. Check fire-safety requirements.
10. Check C3/C4 planning history and Article 4 status.
11. Establish what application you will need to make after acquisition.

A property being advertised as a “six-person HMO” means very little if the current licence permits only five people, one room falls below the relevant size standard or planning use is unresolved.

How do I check whether a property already has an HMO licence?

Local housing authorities maintain public registers of licences granted under the Housing Act 2004. The exact search process varies between councils.

For London due diligence, there are really two different questions:

Does this property require a licence?

and:

Does this property already have the correct licence?

HMO KIT’s HMO Licence Checker helps with the first. The relevant council’s licensing register helps with the second. If you are buying a tenanted HMO, check both.

What happens if I need an HMO licence and do not have one?

This became significantly more serious in 2026.

From 1 May 2026, the maximum civil financial penalty for specified Housing Act offences, including failure to licence a licensable HMO, increased from £30,000 to £40,000.

Prosecution for operating an HMO without the required licence can also result in an unlimited fine.

For relevant offences committed from 1 May 2026, tenants can seek repayment of up to 24 months’ rent (two years) through a Rent Repayment Order.

Older articles still warn about historic Section 21 consequences from unlicensed HMOs. For private-sector assured tenancies in England that warning is now historical under the new tenancy regime from 1 May 2026.

In a current 2026 guide, the central enforcement risks are better expressed as criminal liability, civil penalties, rent repayment orders, management action and wider compliance consequences.

What if I have only just discovered that I need a licence?

Do not ignore it.

If the property is going to continue operating in a way that requires licensing, deal with the licence position promptly.

If genuine steps are being taken to make the property cease to require licensing, a Temporary Exemption Notice (TEN) may sometimes be relevant. A TEN is not a licensing loophole. Councils can grant one where appropriate while genuine steps are being taken so that the property will no longer need to be licensed. The initial notice normally lasts three months, with a second period possible only in limited or exceptional circumstances.

If you have already received a council letter or believe the property has been operating unlicensed, this is a situation for property-specific advice rather than another afternoon of Googling.

How to check if you need an HMO licence in London

1. Enter the property into HMO KIT’s HMO Licence Checker. Use the actual postcode and address where possible.
2. Confirm the occupiers and households. Do not rely only on bedrooms or names on the tenancy.
3. Check whether mandatory or additional licensing applies. If it is not an HMO, check selective licensing too.
4. Check the borough’s HMO standards. A property requiring a licence must also be capable of meeting the standards for the proposed occupation.
5. Check Article 4 and planning separately with the Article 4 Checker.
6. If the position is borderline, get it manually reviewed — purpose-built flats, Section 257 conversions, mixed-use buildings and unusual occupancy arrangements are exactly where simple online rules become less reliable.

HMO KIT’s licensing data methodology checks borough information against local-authority sources, statutory material, government guidance and Greater London Authority information, but individual property circumstances can still affect the final position.

HMO licence FAQs

So, do you need an HMO licence?

If you remember only one thing from this guide, make it this:

Three people can make a property an HMO. Five people can make it mandatorily licensable. But the local council scheme can change the answer in between.

That means the safest order is:

Count people → count households → identify the property type → check mandatory licensing → check additional licensing → check selective licensing → check planning separately.

For London landlords, there is little upside to guessing. Licensing schemes change. Boundaries change. Occupancy changes. And in 2026, getting the answer wrong can carry a civil penalty of up to £40,000 and expose landlords to rent repayment orders covering up to two years’ rent.

Useful HMO KIT tools and guides

• HMO Licence Checker
• Mandatory vs Additional vs Selective Licensing
• Tower Hamlets selective licensing ends 30 Sep 2026
• HMO Licence Cost London 2026
• HMO Licence Documents Checklist
• Article 4 Checker · Article 4 guide
• Room Size Checker · London HMO Standards
• HMO Licence Application
• GOV.UK — HMO licence
• GOV.UK — licensing of HMOs guide for landlords
• Housing Act 2004 · Section 68 (no transfer)

This guide covers HMO licensing in England, with particular emphasis on London. Scotland, Wales and Northern Ireland operate different licensing regimes. HMO KIT’s guides are general information rather than legal advice. Licensing schemes, fees, designation boundaries and local standards can change, so verify the current requirements for the exact property before acting.