Who is exempt from HMO licensing?

Reviewed by Sean McNamara, 2026-10-07

Not every shared house needs a licence. The Housing Act 2004 defines mandatory licensing (5+ persons, 2+ households) and a menu of exemptions - but 'exempt from mandatory licensing' is not the same as 'exempt from everything', and selective licensing can still catch you.

The three licensing regimes, in one breath

Mandatory (statutory, England-wide): 5+ occupants, 2+ households, shared facilities. Additional (council opt-in): smaller HMOs in designated areas. Selective (council opt-in): ALL rentals in a designated area, HMO or not. Exemptions differ per regime - being outside mandatory doesn't exit you from a local selective zone. Check all three for your postcode before renting.

The family-member exception, precisely

A property occupied by members of the same family (living together as a single household) is generally not an HMO at all - no licensing regime applies. But 'family' here is defined (relatives by blood, marriage, cohabitation chains get technical with foster children, lodgers and couples). A lodger usually doesn't make it an HMO; a paying unrelated subtenant can. When the household shape is mixed, the council's HMO team settles it - ask them in writing.

Questions this page answers

Who is exempt from HMO licensing?
Standard exemptions from MANDATORY licensing include: buildings controlled by public bodies (e.g. local authorities, police, NHS), universities managing their own student halls, registered social landlords in some cases, certain buildings converted for owner-occupiers, and properties where the residents are all family members. The detail is technical - the schedule to the 2007 order lists them; check before relying on any exemption.
What properties are exempt from selective licensing?
Selective licensing applies to non-HMO rental properties in designated areas - the exemptions mirror mandatory ones (public bodies, some conversions, family arrangements) plus additional order-specific carve-outs. Each COUNCIL's designation sets its own map and conditions - two neighbouring boroughs can differ completely.
What are the mandatory licensing conditions for HMOs?
Mandatory licensing covers houses where 5 or more people in 2+ households share facilities (post-2018 removal of the storey filter). Licence conditions commonly require:manager details displayed, gas safety certificates annually, electrical checks (every 5 years), smoke alarms each storey, and specific amenity standards per the council's scheme.
Which boroughs have selective licensing?
Dozens of English councils run selective (or additional) licensing designations - London boroughs especially (several boroughs designate whole wards). Lists change: councils consult, renew, or shrink zones. The reliable answer: your specific council's housing licensing pages, or this site's council-register checker for the area of YOUR property.
Which London boroughs have selective licensing?
Multiple London boroughs operate selective/additional schemes (Newham's has been among the best known; others run ward-level schemes). Verify against your borough's CURRENT designation - London maps shift frequently, and the fine for operating where a scheme applies is the same civil penalty regime as mandatory licensing breaches.

Sources and further reading

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Are you a HMO compliance consultant, letting agent or housing solicitor? Get listed on this page →

Need to check the facts? Use the council-register and rent-repayment tools on this site, then verify the result against the council and tribunal sources linked above.

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