21 October 2026
HMO in London: the licensing rules investors check before buying
When a house in multiple occupation needs a licence in England, how London councils add their own schemes, and the checks investors make before buying.
In England, a large HMO needs a mandatory licence from the council when it is rented to 5 or more people who form more than one household, some or all tenants share a toilet, bathroom or kitchen, and at least one tenant pays rent. Many London councils go further and license smaller HMOs as well, so check the borough before you buy.
The national rules
From GOV.UK's guidance on HMO licences:
- A licence is mandatory for a large HMO: 5 or more people, more than one household, shared facilities, and at least one tenant paying rent (or their employer paying it).
- A licence lasts for a maximum of 5 years and must be renewed before it runs out.
- You need a separate licence for each HMO.
- The council sets the fee and can add conditions, such as improving facilities. You can appeal conditions to the First-tier Tribunal.
- Standard conditions include a suitable number of occupants, a fit and proper manager, an annual gas safety certificate, smoke alarms and electrical safety certificates on request.
- Renting out an unlicensed HMO can lead to an unlimited fine.
Why London is different in practice
GOV.UK notes that depending on the area you may need a licence even for fewer than 5 people. In London, boroughs use additional and selective licensing schemes, and the rules change street by street at borough boundaries. Two houses a few hundred metres apart can need different licences.
Checks before you buy
- The borough's licensing scheme. Look up the council's current HMO and selective licensing pages for the exact street.
- Planning use class. Some areas restrict converting a family house to an HMO. Ask the council's planning team whether permission is needed.
- Room sizes and facilities. Councils set minimum bedroom sizes and kitchen and bathroom ratios. Measure on the viewing.
- Fire safety. Doors, alarms and escape routes may need work.
- The existing licence. If the seller has one, ask for it and its conditions. A licence does not transfer automatically to a new owner.
Running the numbers
An HMO can earn more rent than the same house let to one family, but licensing fees, compliance work, furnishing, bills and management all come out of it. Work out the yield after those costs. Our guide to calculating rental yield on a London flat shows the method.
Finding the stock
Larger houses suitable for HMO use are often listed by different agents across several portals. Housieve reads Rightmove, Zoopla, OnTheMarket and Gumtree each night in Invest mode, scores listings on yield, location, condition and growth, and sends strong matches by email or WhatsApp.
Once tenanted, an HMO landlord with several houses and staff ends up hiring; our post on right to work checks for small employers covers the paperwork. If you run lettings across several offices, Google reviews per office are worth watching; see review management for multi-location businesses.
Frequently asked questions
Does a 4-bed shared house in London need a licence?
Possibly. It falls below the national mandatory threshold of 5 people, but many London boroughs license smaller HMOs. Check the council.
How long does an HMO licence last?
A maximum of 5 years.
What happens if I let an unlicensed HMO?
GOV.UK says you can face an unlimited fine.
Next step
Run an Invest search at housieve.braivex.com and see scored London stock each morning. The trial is free for 14 days.