If you are a private landlord with several tenants living in one property, you may own a House of Multiple Occupation (HMO). If this is the case, you must apply for an HMO licence through the local authority where your property is located.

The current national HMO scheme applies to properties with three or more storeys and five or more people. The tenants must also form two or more households, so a single family of five or more would not require licencing.

A local authority can also impose a policy that requires other sizes of HMOs to be licenced. This is known as Additional HMO licencing. This licence applies to any privately rented property occupied by three or four people, forming two or more households.

Failure to obtain a licence could result in an unlimited fine, a criminal record, or a civil penalty of up to £30,000 per offence if prosecuted. Landlords may also be barred from operating rental properties.