Mandatory HMO Licensing

Renting out a House in Multiple Occupation, or HMO, is not a simple process, as it comes with strict legal requirements. Failing to meet these requirements can result in hefty fines, rent repayment orders and banning orders. The Mandatory HMO Licensing scheme has been introduced to ensure that properties rented to multiple tenants meet the minimum requirements for management, space, and safety standards. 

The licensing process can seem overwhelming and complex to landlords, investors, or property managers due to the varied local regulations, renewal requirements, and compliance checks. Yuno has simplified the process of obtaining and maintaining an HMO licence. Whether you need help identifying which licence you need, are in need of a new licence or are seeking a renewal and everything in between, we are here to ensure your HMO property compliance. 

 

What is Mandatory HMO Licensing?

Mandatory HMO licensing in England and Wales refers to the legal requirements for rental properties that accommodate 5 or more unrelated residents who share facilities within the property. These facilities include bathrooms, toilets and or kitchens. The goal of HMO licensing is to ensure properties meet safety, management and space requirements in order to protect tenants and maintain housing standards. 

In Wales only, the property must be 3 or more stories, and in England only, there is an exemption for flats that have 3 or more flats in a purpose-built building.  Other exclusions can apply.

In contrast to selective or additional licensing, which varies by local council, Mandatory HMO licensing applies uniformly across England and Wales. 

As previously stated, the licensing process is complex and involves a range of compliance checks. These compliance checks include fire safety, HHSRS, room size, waste management provision and property management. If you don’t have a valid HMO licence, and maintain compliance with it, you risk severe penalties, fines and legal consequences that may prevent you from renting out properties in the future. 

In order to ensure HMO compliance to licensing, property professionals need to apply for a Mandatory HMO license through the local council, follow application procedures, comply with the HMO Management Regulations 2006, property inspections and continuous renewal requirements of the licence itself and all requirements of the issued licence. Yuno assists property professionals in navigating this process by ensuring all regulatory obligations are met effectively and in a timely manner, end-to-end. 

 

Key HMO Licensing Requirements for Landlords

In order to obtain an HMO licence, landlords and property professionals need to comply with specific standards, including but not limited to the following: 

  • Fit and Proper Person Test: Landlords or agents must have no criminal convictions or history of breaching landlord laws, which is defined under Part 263 of the Housing Act 2004 (England and Wales) under persons managing and persons in control.
  • Property Suitability and Minimum Room Sizes: Each bedroom on the property needs to meet the minimum sizes as set by the Government, though these can be increased by the local council, so ensure you have the correct advice, in England and Wales:
    • 6.51 square meters for one occupant.​
    • 10.22 square meters for two occupants.​

Note: Measuring space in a bedroom is quite complex. Yuno is here to support you should you need it.

  • Amenity Standards: The required amenities are based on the guidelines set by the council, so they can vary heavily depending on the council and there are to ensure that, based on the type and number of tenants, the relevant amenities are adequate.
  • Fire Safety Regulations: Correct installation and maintenance of smoke alarms and CO alarms, adherence to fire safety protocols, and clear escape routes need to be put in place on the property. 
    • Waste Management: Adequate rubbish disposal facilities need to be in place, and properties need to adhere to local waste management guidelines. 
  • HHSRS (England and Wales): Licensing will look at all 29 hazards covered in HHSRS.
  • Energy Performance: Some councils push for higher energy efficiency standards, too.
  • Complying with the HMO Management Regulations 2006 (For 254 HMOs) or 2007 (For 257 HMOs) (England and Wales): Regularly used to enforce, ensuring you comply with this even before and during the application process is essential. Don’t just wait for the council; take the right advice from an Accredited Environmental Health Officer (CIEH), available through Yuno.

 

These are just some of the strict requirements that ensure property compliance and tenant safety. 

How to Apply for a Mandatory HMO Licence

The process to apply for a mandatory HMO licence is complex and involves:

    1. Can you let the property as an HMO?: Check all your permissions, including on your lease, if you have one.
    2. Documentation: Prepare necessary documents, including property floor plans and valid safety certificates. Some certifications may not be familiar to you and can be quite complex; it is common for councils to request Fire Safety Risk Assessments (FSRA) and Automatic Fire Detection (AFD) Certification. Yuno can support with simple and complex compliance certifications.​
    3. Application Fees: Fees vary by council and can range from a few hundred to thousands of pounds. Some councils may offer discounts for accredited landlords.​
    4. Application Submission: Submit the application to your local council, along with the required fees.​
    5. Notify all Relevant Parties: As per the Housing Act 2004, lenders, property managers, building managers, freeholders, and anyone with an interest in the property is to be notified legally by the applicant.
    6. Processing Times: The duration for approval can differ, but councils aim to process applications within a specified timeframe, often several weeks but has seen to be years.
    7. Inspection: The council will inspect the property to ensure it meets all standards, at least once in the 5-year licensing term.​ Sometimes an inspection is required before issuing a licence.
    8. Common Reasons for Rejection: Incomplete or incorrect applications, failure to meet property standards, not being Fit and Proper, or a history of non-compliance can lead to rejection.​ Not doing things correctly can add additional costs and risks to the whole process.
    9. Draft Licence: The council will issue a draft licence 21 days before the full licence, this is your time to review.
  • Representations: Upon receiving the draft licence, a thorough review should be conducted to ensure you understand what you are agreeing to comply with. It is advisable to seek expert advice to determine if the upgrades are reasonable, as you may save a significant amount of money. Yuno can help.
  1. Approval: The council will issue the HMO licence.​
  2. Upgrades to meet compliance requirements: Ensure any upgrades are carried out by competent and accredited experts; the council will ask for proof through documentation and certification.
  3. Staying compliant with the licence: Ongoing compliance is what licensing is all about, staying compliant to all documentation and certification requirements is complex and time-consuming, but a must to avoid fines. Yuno Tech is designed to help you stay compliant.

 

It is essential to note that processing fees and times vary by local council, so it is advisable to consult your local authority for specific details, or Yuno can provide support. ​

Navigating the Mandatory HMO licensing process can be overwhelming, but with this in mind, Yuno has simplified the process by providing landlords with expert support at every stage. Our goal is to minimise delays, total costs, risks and potential penalties. 

Planning: Remember that if you do not have the relevant planning permission in place or have not applied for it before applying for the licence, you may receive a refusal of the licence or a short licence term, which will add costs and stress. Yuno can confirm your requirements before you start on your journey.

 

What Happens If You Don’t Have a Mandatory HMO Licence?

Non-compliance with Mandatory Licensing can result in severe consequences, including:

  • Fines up to £30,000 per offence: Local authorities can impose substantial fines for operating without a Licence.​
  • Rent Repayment Orders: Landlords may be required to refund up to 12 months’ rent to tenants.​
  • Prosecution and Criminal Penalties: Serious breaches can result in prosecution, leading to a criminal record and additional fines.​

     

Ensuring compliance not only avoids these penalties but also contributes to maintaining high housing standards and tenant satisfaction.​

 

Why Choose Yuno for HMO Licensing Support?

With years of experience in the industry, Yuno offers expert-led, end-to-end support to help landlords manage the entire HMO licensing process. 

From initial requirement checks to final council approval and upgrade works, we ensure that your property is fully compliant, legally secure, and tenant-ready. This allows you to focus on managing your investment without unnecessary administrative burdens.

 

Stay Updated with Regulations

HMO regulations also regularly change, and licences require periodic renewal. 

In order to keep your licence up to date, Yuno offers ongoing compliance support, keeping you informed about:​

  • Instant checks and Live monitoring of your portfolio: Identifying which properties require a licence couldn’t be easier with Yuno’s API and platform to support you.
  • Eligibility Assessment: Determining if your property requires an Additional HMO licence based on local regulations.​
  • Application Management: Handling the preparation and submission of all necessary documentation to ensure accuracy and completeness.​
  • Compliance Guidance: Providing advice on meeting all regulatory standards, including property improvements and management practices.​
  • Compliance Upgrades: Yuno provide access to accredited experts for advice and upgrades where required.

 

Ongoing Compliance 

Licensing regulations are well known to change over time, and Licences require periodic renewal. 

Yuno offers ongoing support to help landlords stay informed about:​

  • Instant checks and Live monitoring of your portfolio: Identifying which properties require a licence couldn’t be easier with Yuno’s API and platform to support you.
  • Eligibility Assessment: Determining if your property requires a licence based on local regulations.​
  • Licensing and Planning Application Management: Handling the preparation and submission of all necessary documentation to ensure accuracy and completeness.​
  • Compliance Guidance: Providing advice on meeting all regulatory standards, including property improvements and management practices.​
  • Compliance Upgrades: Yuno provide access to accredited experts for advice and upgrades where required.
  • Expert Advice: Access to professionals with in-depth knowledge of regulations and best practices.​
  • Compliance Tracking: Yuno tech tools are used to monitor and manage ongoing compliance obligations.​

     

This continuous support ensures that landlords, managers and property professionals remain compliant and avoid potential issues arising from regulatory changes.​

This proactive approach helps you maintain adherence to all legal requirements. ​

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You do not have to navigate the complexities of Mandatory HMO licensing alone. Get your Mandatory HMO Licence with Yuno today. Contact Yuno for expert assistance, ensuring a faster and easier licensing process. 

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Paul Conway Founder & CEO

With over 15 years immersed in the property sector, Paul’s expertise is unparalleled. From his beginnings as a developer in Chelsea to pioneering the innovative Yuno property compliance model, his journey showcases a deep understanding of the industry’s intricacies.

Having been a slave to the beast of responsibility & liability, Paul decided to partner with property legal professionals & experts to create a platform that would empower all with the knowledge and means to set themselves free once and for all. With Yuno, you’re not just complying; you’re thriving.

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In 2016, Russell’s entrepreneurial spirit led him to raise an impressive $8 million for the establishment of Paymenta, a cutting-edge platform specializing in foreign exchange and remittances.

Russell is a proud graduate of Oxford, where he earned his PGDip in Software and System Security. His expertise and passion for technology make him an invaluable asset to Yuno, ensuring our platform remains at the forefront of innovation.

Lori Thompson Boardmember & Advisor

Lori brings over two decades of expertise in estate agency and the private rental sector to the Yuno team. 

As a valued advisor, Lori plays a crucial role in shaping Yuno’s compliance solutions, ensuring they meet the needs of our clients in an ever-evolving industry. Her wealth of knowledge and commitment to excellence make her an integral part of our mission to simplify compliance in property management.

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With a keen eye for new legislation and obligations, David excels in advising and litigating complex property issues. He has a knack for finding innovative solutions within existing laws to tackle unique client challenges.

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