HMO (House in Multiple Occupation)
Definition
An HMO is a UK regulatory classification for a property rented by three or more unrelated people who share facilities like a kitchen or bathroom. Most UK coliving properties qualify as HMOs and require licensing from the local council, with rules that vary significantly by borough.
Benchmark
£755 – £1,886
The range of mandatory and additional HMO licence fees across the four UK cities in our entry cost index, verified from council sources in September 2026.
A house in multiple occupation is a property rented by three or more people forming more than one household who share facilities such as a kitchen or bathroom. A household means a single person or members of one family, so five friends sharing are five households.
Mandatory licensing in England applies at five or more occupants from two or more households sharing facilities, under Part 2 of the Housing Act 2004 and the Prescribed Description Order 2018. Below that threshold, licensing depends on whether the council operates an additional licensing scheme — many do, and designations are local, time-limited and change on their own timetable.
The Management of HMO Regulations 2006 sit on top of the licence and apply whether or not the property is licensable. They cover the manager's duties on fire safety, water and drainage, gas and electrical supply, common parts and waste — duties that belong to the manager, which is to say to you.
Fees vary far more than operators expect. A mandatory licence is £977 in Tower Hamlets and £1,886 for a new application in Bristol: the same statutory licence, the same five-year term, roughly double the price.
The common mistake
Assuming the branding changes the classification
The mandatory licensing test looks at occupancy — five or more people forming two or more households sharing a kitchen, bathroom or toilet — and not at how the property is marketed. There is no coliving exemption anywhere in the legislation. A licensable HMO run as coliving is still a licensable HMO, and operating one without a licence is a criminal offence carrying an unlimited fine on prosecution.
Frequently asked
How many people make a property an HMO?+
Three or more people forming more than one household who share facilities. Mandatory licensing applies at five or more from two or more households, though many councils license smaller HMOs through additional licensing schemes.
What are the minimum room sizes for a licensed HMO?+
National mandatory licence conditions since October 2018 set 6.51 m² for one person aged over 10, 10.22 m² for two, and 4.64 m² for a child under 10. A room below the threshold cannot be licensed as sleeping accommodation.
What happens if I operate an HMO without a licence?+
It is a criminal offence carrying an unlimited fine on prosecution. Councils can alternatively impose civil penalties of up to £30,000 per offence, and tenants may seek a rent repayment order.
UK HMO licensing requirements, in full
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Coliving vs HMO: what actually changes
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Compliance guides, city by city
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HMO licences in London
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