What is an HMO?

A House in Multiple Occupation (HMO) is a property rented to three or more tenants who form more than one household and share facilities like a bathroom or kitchen.

Current Requirements

Mandatory licensing - you must have a licence if your property is:

  • Occupied by 5 or more people forming 2 or more households
  • Sharing facilities (bathroom, toilet, or kitchen)

Additional licensing - many local authorities require licences for smaller HMOs (3-4 people).

Selective licensing - some areas require licences for all private rented properties.

Penalties for Non-Compliance

Current penalties:

  • Unlimited fines - courts regularly impose five-figure penalties
  • Rent Repayment Orders - tenants can claim back up to 12 months' rent
  • Criminal prosecution for serious or repeated breaches
  • Banning orders preventing you from being a landlord

From 1 May 2026: Rent Repayment Orders increase to 24 months' rent - a significant increase in financial exposure.

Need Help With HMO Licensing?

Rent Repayment Orders are increasing to 24 months' rent from 1 May 2026. Our HMO expertise ensures you're licensed, compliant, and protected from these significant penalties. Get in touch to learn more.