Do you need an HMO licence?

Four questions. The answer depends on how many people live there, how many separate households they form, and whether they share a kitchen or bathroom. Not on how many floors the building has.

Operating an unlicensed HMO carries a civil penalty of up to £30,000 and a rent repayment order of up to 24 months’ rent. The Renters’ Rights Act doubled that from 12 months for offences committed on or after 1 May 2026, and gave tenants two years to bring a claim.

Where is the property?
The threshold is lower in Scotland and Northern Ireland.
How many people live there in total?
Count everyone who occupies the property as their main residence, including children.
How many separate households is that?
A household is one person, or a group related by blood, marriage or civil partnership. Five unrelated sharers are five households. A couple plus three friends is four.
Do they share a kitchen, bathroom or toilet?
If every unit is fully self-contained, different rules apply.

Answer all four to see the result.