Summary
HMO licence is needed for 5+ people living at a property (always), and sometimes for 3–4 people depending on your council.
Selective licence can apply to non‑HMO rentals (single households) in designated areas.
Planning may also be required for HMOs: C3 → C4 (3–6 people) and C3 → Sui Generis (7+). Many councils have Article 4 directions that remove automatic rights for C3 → C4.
Key Definitions
House in Multiple Occupation (HMO): 3 or more people from 2 or more households sharing amenities such as a kitchen, bathroom, or toilet.
Household: One family unit (relatives/half‑relatives) or a couple living together.
Licence types:
HMO licence (two sub‑types):
Mandatory HMO – applies nationwide when 5 or more people live at the property.
Additional HMO – an optional, local scheme where councils can require an HMO licence for 3–4 people.
Selective licence – a non‑HMO licence that councils can apply to any rented property in specified areas (usually single‑household lets).
Decision Guide: Do You Need a Licence?
Use this quick decision tree (save this!)
How many people will live there?
5 or more people → You always need a Mandatory HMO licence.
3–4 people → Go to step 2.
1–2 people → Go to step 3.
If 3–4 people: Is it an HMO? (i.e., 2+ households sharing facilities)
Yes (HMO) → Check if your council runs Additional HMO licensing. If active, you’ll need an HMO licence.
No (single household) → Go to step 3.
If not an HMO (single household): Does your council have a Selective licensing scheme for the property’s area or type?
Yes → You’ll need a Selective licence.
No → No licence is required (for licensing purposes), but keep reading re planning and other landlord duties.
Tip: “Single household” includes families and couples living together. Three unrelated friends living together are not one household; that’s an HMO.
How to Check Your Council’s Current Rules (in 2 minutes)
Selective and Additional HMO schemes run in 5‑year cycles. A scheme might have expired, so don’t rely on old articles or forum threads.
Search this on Google:
"{council name}" {selective licence / additional HMO licence / mandatory HMO licence}
Examples:
Lambeth Council additional HMO licenceManchester Council selective licensing map
Open the council page and look for:
Whether the scheme is currently active (and where).
Start and end dates of the scheme.
Property types/streets covered.
The application process, fees, and deadlines.
Important: If a Selective or Additional HMO scheme is not currently active, you don’t have a legal duty to apply for that licence.
Planning Permission: When Does It Kick In?
You can stop here if you’re not operating an HMO. For HMOs, planning is crucial.
Use classes (planning)
C3 – Standard residential (most single‑household homes).
C4 – Small HMO (3–6 people).
Sui Generis – Large HMO (7+ people).
Change of use
C3 → Sui Generis (7+): Planning permission is always required.
C3 → C4 (3–6 people): Normally permitted development (no planning application)… unless your council has an Article 4 direction.
Article 4 directions
Many councils (well over 100; e.g., 116 at time of writing) have issued Article 4 directions that remove the automatic right to switch from C3 to C4. In these areas, you must apply for planning permission even for a small HMO (3–6 people).
What this means in practice
In some areas, renting to 3–6 unrelated people (e.g., three friends) may require both an HMO licence and planning permission.
Why Should You Care? (Rent Payback)
Licensing isn’t just bureaucracy—it carries real financial and legal risks if you miss it. If your property should be licensed but isn’t, you could face:
Civil penalties up to £30,000 per offence. Councils can issue large fines for operating a licensable property without a licence. In serious cases, they may also prosecute (with unlimited fines).
Rent Repayment Orders (RROs) up to 12 months’ rent. Tenants (or the council) can apply to a tribunal to reclaim up to a year of rent for certain offences, including renting out an unlicensed HMO or a property that needs a Selective/Additional HMO licence. The amount is set by the tribunal and can include benefits paid via Housing Benefit/Universal Credit.
You can’t use Section 21 while unlicensed. In areas where licensing applies, a Section 21 eviction notice is usually invalid until a valid licence (or an active application/temporary exemption) is in place.
Repeat‑offender sanctions. Persistent non‑compliance can lead to banning orders and listing on rogue landlord databases.
Bottom line: If you think your property might need a licence, apply ASAP. Getting the application in early protects you while the council processes it—and it can dramatically reduce your risk profile.
