HMO Mandatory Licensing Rules
A mandatory HMO licence is required in England and Wales if a property is occupied by 5 or more people from 2 or more households sharing facilities.
Houses in Multiple Occupation (HMOs) are a popular strategy for maximizing rental yields, but they come with strict regulatory requirements. The most significant of these is mandatory licensing.
In England and Wales, a property must have a mandatory HMO licence if it is rented to five or more people who form more than one household, and who share facilities like a kitchen or bathroom. Operating an unlicensed HMO is a criminal offence that can lead to unlimited fines and Rent Repayment Orders.
Additional Licensing
It's vital to remember that local authorities also have the power to introduce 'Additional Licensing' schemes. This means that even if you have fewer than 5 tenants (e.g., 3 or 4 sharers), you might still need a licence depending on the specific borough or council area the property is located in.