The Essential Guide to Applying for an HMO Licence in 2025
Listen to the full Podcast Episode: https://theessentialpropertypodcast.podbean.com/e/58/
If you’re a landlord managing a House in Multiple Occupation (HMO), securing a HMO licence is a legal requirement in most cases. The licensing process has become more detailed and regulated over the years, making it essential for landlords to stay compliant.
In this blog, we’ll break down the HMO licence application process, covering costs, key requirements, inspections, and documentation. Whether you’re handling it yourself or working with an agent, this guide will ensure you know what to expect.
What Is a Licensable HMO?
Under mandatory HMO licensing, any property that houses five or more tenants forming two or more householdsmust have a licence.
✔ Before 2018: Only HMOs with 7+ bedrooms required a licence
✔ Since 2018: Any 5-bed+ HMO requires a licence, meaning thousands of landlords had to register their properties.
📌 Key Rule: You must apply for a licence before the 5th tenant moves in. Properties with four or fewer tenants do not require licensing, but it’s best to check with your local council.
Step 1: Application & Fees
The licensing process varies between councils, but the general steps remain the same.
1️⃣ Visit your local council’s website to access the online HMO licence application form.
2️⃣ Check the fees:
Stoke-on-Trent Council: ~£800 for up to 6 beds.
Cheshire East (Crewe): ~£1,000 for up to 6 beds.
Larger HMOs cost more, and licences typically last five years.
📌 Note: Crewe initially issued two-year licences, but now most councils provide five-year licences.
Step 2: Choosing a Licence Holder & Property Manager
A key part of the application is declaring who will hold the HMO licence and who will manage the property.
✔ Licence Holder: Usually the property owner, but this depends on location.
✔ Property Manager: The agent or responsible party managing compliance.
📌 Important Differences Between Councils:
Stoke-on-Trent: Allows owners from anywhere in the world to be the licence holder.
Cheshire East (Crewe): Requires the licence holder to be based locally. Investors from abroad (e.g., Hong Kong, Singapore) must appoint an agent to hold the licence.
Step 3: Declaring Financial & Legal Information
✔ Mortgage Lender Details: You must declare if the property has a HMO mortgage, as councils may inform lendersabout the licence.
✔ Fit & Proper Person Test: You must confirm no criminal history and that you are qualified to operate a safe HMO.
Step 4: Property Compliance & Safety Checks
The application will ask for detailed information about:
✔ Property Layout (number of rooms, bathrooms, lounges).
✔ Heating System (gas or electric).
✔ Safety Features:
Smoke alarms, emergency lighting, fire blankets.
Annual gas safety certificate.
Five-year electrical installation condition report (EICR).
Portable appliance testing (PAT test) for electrical appliances.
Fire alarm servicing (every 6 months for large systems).
Emergency lighting service (annually).
📌 Key Rule: HMOs with three stories or more must have an addressable fire alarm panel.
Step 5: Tenant Management & Documentation
Councils will ask for proof that your tenancy processes are compliant, including:
✔ AST Agreements: Standard tenancy agreements for each tenant.
✔ Deposit Protection Details: Confirmation of a protected tenant deposit scheme.
✔ Tenant Referencing Process: How you screen tenants.
✔ Anti-Social Behaviour Policy: How you manage tenant disputes.
✔ Membership in Professional Bodies: PRS (Property Redress Scheme), NLA (National Landlords Association), etc.
📌 Pro Tip: Some councils still ask if you provide a rent booklet (an outdated practice) – just answer "No" and explain rents are managed electronically.
Step 6: Property Inspections & Approval
📌 Once your application is submitted and fees paid, the council assigns a HMO officer to inspect the property.
What Happens During the Inspection?
1️⃣ The officer verifies the application details against the property.
2️⃣ Checks for safety compliance, including:
Fire doors (FD30 or FD35) with self-closing mechanisms.
Thumb turn locks on exit doors (so tenants can escape in an emergency).
Kitchens & bathrooms meet safety regulations (fire blankets, extraction fans).
3️⃣ A general health & safety check (clean garden, clear gutters, no hazards).
💡 Expect to spend about an hour at the property with the inspector.
Step 7: The Draft Licence & Final Approval
✔ After inspection, the council will issue a draft licence for a 14-day consultation period.
✔ Unless objections arise, the final HMO licence is issued.
📌 What If the Officer Finds Issues?
They will issue a list of required fixes (e.g., upgrade fire doors, improve alarms).
You must complete these improvements before the licence is finalised.
💡 Once issued, the licence must be displayed inside the property on a noticeboard with emergency contact details.
Why You MUST Have an HMO Licence
✔ Legal Requirement: Operating a HMO without a licence is a criminal offence
✔ Heavy Fines: Councils can fine landlords up to £30,000 per unlicensed property.
✔ Tenant Compensation: Tenants can claim rent repayment if you operate without a licence.
📌 Key Takeaway: Don’t try to avoid licensing – the risks and fines far outweigh the cost of compliance.
Conclusion: HMO Licensing is a Process, Not a Barrier
✔ HMO licences ensure properties are safe, well-managed, and compliant.
✔ Yes, the process is detailed, but with the right preparation, it’s straightforward.
✔ Working with an experienced agent can save time and ensure full compliance.
🏡 If you’re a landlord and need help applying for your HMO licence, contact us today! We handle everything – from paperwork to council approvals.
📢 Thinking of investing in HMOs? Make sure you know the rules before you buy!
Comments