HMO licence
An HMO licence is the formal permission from the local council to operate a House in Multiple Occupation (HMO), usually where three or more unrelated people share facilities such as a kitchen or bathroom. Certain HMOs must be licensed by law (mandatory licensing) and councils can extend licensing to more HMOs in their area additional licensing.
From a landlord’s perspective, a licence is personal and time-limited: it names the licence holder and manager, sets maximum occupancy, and imposes conditions on fire safety, amenities, management, waste, and sometimes anti-social behaviour controls. You must show you are a fit and proper person and that the property meets required standards.
Letting or managing a licensable HMO without a licence is a serious offence. Consequences can include:
Civil penalties or prosecution and a criminal record.
Rent Repayment Orders requiring you to repay up to 12 months’ rent or housing benefit/UC.
Problems using certain possession grounds under the post–Renters’ Rights Act, especially where licensing or standards are not met.
Professional HMO landlords treat licensing as central to their business model, with strong record-keeping, regular inspections and prompt responses to council queries and tenant complaints.
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