HMO Licence in London — Who Needs One, What It Costs and How to Apply 2025
HMO licensing in London is mandatory for certain properties and selective in many others. Getting it wrong — operating an unlicensed HMO — carries unlimited fines. This guide explains exactly who needs a licence, what it costs, and how to apply.
What Is an HMO?
A House in Multiple Occupation (HMO) is a property occupied by three or more persons forming two or more separate households who share facilities (kitchen, bathroom, or toilet). A household is typically defined as a family or a couple — three unrelated sharers are three households.
Mandatory HMO Licensing
Under the Housing Act 2004 (as amended by the Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018), mandatory HMO licensing applies to all properties that are:
- Occupied by 5 or more persons from two or more separate households, AND
- At least some of these share a kitchen, bathroom, or WC
Note: The 2018 amendment removed the previous 3-storey minimum requirement. Any HMO with 5+ persons now requires mandatory licensing regardless of storey height.
Additional Licensing in London
Many London boroughs operate additional licensing schemes — extending mandatory licensing to smaller HMOs. As of 2025, the following London boroughs have borough-wide additional licensing covering HMOs with 3+ or 4+ persons:
- Hackney, Haringey, Islington, Newham, Tower Hamlets — 3+ persons
- Brent, Camden, Ealing, Lewisham, Southwark, Waltham Forest — 3+ or 4+ persons
- Lambeth, Wandsworth, Hammersmith and Fulham — specific schemes
Always check with the specific London borough for current licensing requirements — schemes change. Most borough websites have a "property licensing checker" tool.
HMO Licence Costs in London
- Mandatory licence (5+ persons): £500-1,500 depending on borough and property size
- Additional licence (smaller HMOs): £350-900 depending on borough
- Licence duration: 5 years (renewal required)
HMO Licence Application Requirements
To apply for an HMO licence, you will typically need:
- Gas Safety Certificate (CP12) — valid
- EICR — valid (not expired)
- PAT testing records for landlord-supplied appliances
- Fire risk assessment (for properties with 5+ occupants)
- Floor plan of the property
- Details of all proposed occupants and households
- Fit and proper person declaration
Penalties for Unlicensed HMOs
Operating an unlicensed HMO in London is a serious offence:
- Unlimited civil penalty (replaced the £20,000 fine cap in 2017)
- Rent repayment order — tenants can claim back up to 12 months' rent paid while the property was unlicensed
- Inability to serve a valid Section 21 notice while unlicensed
Frequently asked questions
Does a 3-person house share in London need an HMO licence?
It depends on the borough. Under mandatory national licensing, only 5+ person HMOs require a licence. However, many London boroughs operate additional licensing schemes covering 3+ or 4+ person HMOs. Check with your specific borough — Hackney, Haringey, Newham and Islington require licences for 3+ person HMOs.
How long does an HMO licence application take in London?
Most London boroughs process applications within 4-12 weeks of receiving a complete application with all supporting documents. Apply well in advance — you must have a valid licence before the property can be legally operated as an HMO. Provisional operating licences are sometimes granted during processing.
Can I be refused an HMO licence in London?
Yes — the council must be satisfied that the property meets the prescribed standards (minimum room sizes, bathroom ratios, fire safety, electrical safety) and that the landlord is a 'fit and proper person'. Criminal convictions for certain offences (fraud, violence, drugs), previous housing enforcement notices, or a property that doesn't meet standards will result in refusal or a licence with conditions requiring improvement.
What is the minimum room size for an HMO in London?
National minimum room sizes under the HMO (Prescribed Description) (England) Order 2018: single bedroom for one adult — 6.51m². Double bedroom for two adults — 10.22m². Room for child under 10 — 4.64m². London boroughs may specify larger minimums in their licensing conditions. Rooms smaller than these cannot be used as sleeping accommodation.