When do I need an HMO licence?
Mandatory licensing in England and Wales applies to any HMO occupied by five or more people forming two or more households, regardless of how many storeys. On top of that many councils run additional licensing covering smaller HMOs, and some run selective licensing covering all rented property in an area. Because the additional and selective schemes are local and change, the only reliable check is the specific council's licensing page for the specific postcode. Scotland licenses HMOs of three or more unrelated occupants; Northern Ireland has its own scheme.
What is an Article 4 direction and why does it matter so much?
Normally you can convert a family home (use class C3) to a small HMO for up to six people (C4) under permitted development, without planning permission. An Article 4 direction removes that right in a defined area, so the conversion needs a full planning application, which in HMO-saturated areas is frequently refused. Buying a property inside an Article 4 area intending to convert it, without checking first, is one of the most expensive mistakes in UK property. Our free Area Report checks Article 4 coverage from the national planning data by postcode.
What is the minimum bedroom size in a licensed HMO?
In England the statutory minimums for licensed HMOs are 6.51 m² for one person over ten years old, 10.22 m² for two people over ten, and 4.64 m² for a child under ten. Rooms below 4.64 m² cannot be used as sleeping accommodation at all. Councils can and do impose higher standards through their own licensing conditions, and space with a ceiling height under 1.5m does not count toward the total.
What fire safety do I need in an HMO?
Typically a grade D or A interlinked fire alarm system depending on size, fire doors with self-closers to risk rooms, protected escape routes, emergency lighting in larger properties, fire-retardant furnishings, and a written fire risk assessment. The exact specification comes from your council's HMO standards document combined with LACORS guidance, and it varies more between councils than people expect, get the local standards before you cost the refurbishment, not after.
How much more does an HMO make than a single let?
Commonly two to three times the gross rent, but the net gap is narrower than beginners assume. A five-bed HMO at £550 per room grosses £2,750 against maybe £1,100 as a single let, but you then pay all the bills (£400–£700), higher management (10–15% rather than 8–10%), higher maintenance from shared use, licensing amortised, and you carry room voids continuously rather than occasionally. A well-run HMO still comfortably beats a single let, just not by the multiple the gross figures suggest.
Do I need planning permission to convert a house to an HMO?
For up to six occupants outside an Article 4 area, generally no, it is permitted development from C3 to C4. For seven or more occupants it is a sui generis use and always needs planning permission. Inside an Article 4 area you need permission even for the small conversion. Adding an extension, changing the external appearance or altering the roof brings its own separate permissions regardless.
Can I still get a mortgage on an HMO?
Yes, through specialist HMO lenders, though the criteria are tighter: many want you to have prior landlord experience, most lend on a lower loan-to-value than a standard buy-to-let, and valuations may be done on a bricks-and-mortar basis rather than commercial investment value for smaller properties, which can leave a refinance short of what the room income implies. Larger licensed HMOs are more often valued commercially, which is where the BRRR maths starts to work.
What has the Renters' Rights Act 2025 changed for HMOs?
The abolition of Section 21 no-fault eviction and the move to periodic tenancies affects HMOs particularly, because room turnover was often managed by simply not renewing. Landlords now need a valid ground under Section 8 to recover possession, and there are new restrictions on rent increases and rules around pets and discrimination. Practically it means tenant selection, referencing and the written agreement matter far more than they used to, and problem tenants take longer and cost more to remove.
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