HMO licensing glossary

Last updated 30 June 2026

The terms landlords meet when licensing a House in Multiple Occupation in England, defined in plain English with the legislation each one comes from.

House in Multiple Occupation (HMO)

A property rented to three or more people who are not all one household and who share a kitchen, bathroom or toilet. Defined in the Housing Act 2004.Source: Housing Act 2004, s.254

Household

For HMO purposes, a single person or members of the same family living together, including couples, relatives and certain carers. Unrelated sharers count as separate households.Source: Housing Act 2004, s.258

Mandatory HMO licensing

A licence required anywhere in England where a property is let to five or more people from two or more households who share facilities. It applies regardless of the number of storeys.Source: Licensing of HMOs (Prescribed Description) (England) Order 2018

Additional licensing

A scheme a council can introduce to license smaller HMOs that fall outside mandatory licensing. Whether it applies depends entirely on your local authority.Source: Housing Act 2004, s.56

Selective licensing

A scheme covering most privately rented homes (not just HMOs) in a designated area, used by councils to tackle low housing demand or anti-social behaviour.Source: Housing Act 2004, Part 3

Article 4 direction

A planning measure that removes permitted development rights in a defined area, so converting a home to a small HMO needs full planning permission. It is separate from licensing.Source: Town and Country Planning (GPDO) 2015, Article 4

Fit and proper person

The test a council applies to the proposed licence holder and manager, covering relevant criminal convictions, housing-law breaches and discrimination. The declarations are made by you.Source: Housing Act 2004, s.66

Rent Repayment Order (RRO)

An order requiring a landlord to repay rent (or housing benefit) to tenants or the council, available where an HMO was operated without a required licence.Source: Housing and Planning Act 2016, Part 2, Chapter 4

Civil penalty

A financial penalty a council can impose as an alternative to prosecution for housing offences, including operating an unlicensed HMO. See our penalties page for the current maximum.Source: Housing Act 2004, s.249A

Part A and Part B fees

Many councils split the HMO licence fee in two: Part A is paid on application to cover processing, and Part B is paid when the licence is granted. Some councils charge a single fee instead.Source: GOV.UK: House in multiple occupation licence