Updating post from Reddit.

HMO Licensing (England)

HMO Licencing should not be confused with HMO Planning Permission. HMO Planning is a separate system that you may need to obtain in addition to an HMO Licence.

It is an offence to operate an HMO without having obtained a licence. HMOs operating without a licence are subject to an unlimited fine.

HMO license costs vary from council to council. Starting prices are around £300 and can go up to over £1000 for a new application. Renewal fees are lower.

When do I need an HMO Licence?

You will need to apply for a licence if:

  • you rent a property to 5 or more people.
  • Your tenants share areas (bathroom, living room or kitchen).
  • Your tenants do not all belong to the same family or household.

You will always need an HMO Licence if 5 or more people live in the property (and are not related to the owner).

If you have 4 or fewer occupants in a property, it is still a House in Multiple Occupation (HMO) but will not require a licence unless you are in a Selective Licencing Area / HMO Licencing Scheme.

Why will a Licence be Declined?

A Licence is likely to be declined due to property deficiencies or unfit for the number of occupants.

There is a big emphasis on Safety, especially Fire Safety. They require detection systems, prevention systems, alarms, escape routes, emergency lighting, maintenance and testing.

The council wants to ensure a good standard of living in general. Applications are declined due to the low amount of living area or amenity provisions for the number of proposed occupants.

The council has to carry out a Housing Health and Safety Rating System (HHSRS) risk assessment on your HMO. If the inspector finds any unacceptable risks in the evaluation, you must carry out work to eliminate them.

In addition, the licence holder must be a 'fit and proper person' the local authority may take into account:

  • criminal convictions
  • history of housing laws broken
  • history of breaking HMO conditions

If a Local Authority declines an HMO Licence, you can appeal to the First-Tier Tribunal.

HMO Licence Conditions

Your Local Authority will include several conditions of your licence. There are common restrictions such as:

  • Training Requirements (of owner/management)
  • Maximum Occupancy
  • Fire Safety Precautions
  • Minimum Kitchen facility requirements
  • Minimum Heating Requirements
  • Minimum Bathroom facility requirements
  • Minimum Communal Space Requirements
  • Minimum Bedsit Space Requirements
  • Plan to handle Antisocial Behaviour
  • Additional Conditions in your Tenancy Agreements
  • Up-to-Date Certificates (Gas, Electric, Fire Alarm, PAT)

You can request amendments to the conditions with the consent of your Local Authority. If a Local Authority declines, you can appeal to the First-Tier Tribunal.

House in Multiple Occupation (HMO) Licence Cost

You can consult your Local Authority for the cost of licencing, the cost varies across the country. In addition, some councils require payment for an HMO Inspection on top of the HMO Licence Cost.

The average landlord HMO licence across the UK stands at £600.