What is a house in multiple occupation (HMO)?
A property is a house in multiple occupation (HMO) when it is let to three or more people forming two or more households who share facilities such as a kitchen or bathroom. HMOs occupied by five or more people forming two or more households need a mandatory licence from the council.
Read more in our guide: Selling an HMO portfolio
Key facts at a glance
| Item | Detail |
|---|---|
| Basic definition | Let to 3 or more people forming 2 or more households who share a kitchen, bathroom or toilet |
| Mandatory licence | 5 or more people forming 2 or more households (since 1 October 2018, regardless of storeys) |
| Minimum bedroom sizes (licensed HMOs) | 6.51 m² for one adult, 10.22 m² for two adults, 4.64 m² for a child under 10 |
| Planning use class | C4 for 3 to 6 people; 7 or more is usually sui generis and needs planning permission |
| Article 4 directions | Remove the automatic right to change a family house (C3) to a small HMO (C4) in many areas |
| Council tax | Normally paid by the landlord |
| Key law | Housing Act 2004 and the HMO Management Regulations 2006 |
What Makes a Property an HMO
A household is a single person or members of the same family living together, including couples and relatives. A house shared by three unrelated friends is an HMO; a family of five is not. The Housing Act 2004 also treats some converted buildings as HMOs, including blocks of flats converted without meeting the 1991 Building Regulations where fewer than two thirds of the flats are owner-occupied (known as section 257 HMOs).
Landlords' Extra Duties
- fire safety, including fire doors, detection and escape routes, usually assessed against LACORS guidance;
- keeping common parts, fixtures and installations in repair, under the HMO Management Regulations;
- displaying the manager's contact details;
- annual gas safety checks and five-yearly electrical inspections, with certificates supplied to the council on request;
- adequate kitchens and bathrooms for the number of occupiers;
- a licence where required.
Selling an HMO
HMOs are specialist investments, and selling one well depends on finding the right buyer.
- Licences do not transfer. The buyer must apply for a new licence. A duly made application protects them while the council decides.
- Planning status matters. Buyers will want evidence of lawful HMO use, such as a planning permission or a Certificate of Lawful Existing Use, especially in Article 4 areas, where an established HMO can be worth more because new ones are restricted.
- Valuation basis. HMOs are often valued on their income and yield, while some sell better as family homes. An appraisal should compare both.
- Finance. Fewer lenders offer HMO mortgages, so cash buyers and experienced HMO investors are often the strongest bidders.
- Tenancies. Room-by-room lets mean many separate tenancies, deposits and records for the buyer to check.
- Student HMOs. The Renters' Rights Act includes a ground for possession at the end of the academic year for qualifying student HMOs.
Our guide to selling an HMO portfolio covers these in more detail.
Official Sources and Further Reading
- GOV.UK: Houses in multiple occupation and residential property licensing reform
- GOV.UK: Private renting, HMO licence
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
A property is a house in multiple occupation (HMO) when it is let to three or more people forming two or more households who share facilities such as a kitchen or bathroom. HMOs occupied by five or more people forming two or more households need a mandatory licence from the council.
Three or more people forming two or more households who share facilities such as a kitchen or bathroom.
A mandatory licence is needed when five or more people forming two or more households live there. Councils can also require licences for smaller HMOs through additional licensing schemes.
No. HMO licences are personal to the licence holder and do not transfer to a buyer, who must apply for their own.
For 7 or more occupants, usually yes. For 3 to 6 occupants, a change from a family house is normally allowed without permission unless the area has an Article 4 direction.
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