Houses in Multiple Occupation appear in conveyancing more often than clients realise.
Whether your buyer is an investor, a landlord expanding their portfolio, or simply someone purchasing a home that’s been used for shared living, HMOs can bring a layer of regulation, licensing and compliance that needs to be handled carefully.
This short guide breaks down what HMOs are, why they matter in a transaction, and what conveyancers should flag early.
What Is an HMO?
An HMO is a property where three or more people from more than one household live together and share basic amenities such as a kitchen, bathroom or living area. The classic scenario is student housing or young professionals sharing a home, but HMOs take many forms: converted houses, larger shared homes, bedsits or purpose-built shared accommodation. Importantly, the HMO definition is set in law, and local authorities have the power to impose additional licensing requirements depending on local issues and housing needs.
When Does an HMO Need a Licence?
Some HMOs require mandatory licensing — typically where five or more unrelated people share facilities. However, many councils also operate “additional licensing” schemes that capture smaller HMOs, and these schemes vary from area to area. A property that didn’t need a licence last year might need one now under a revised local policy. Licensing conditions often cover fire safety, room sizes, amenities, management standards and the condition of the communal areas. If a property is being sold with tenants in place, buyers may inherit a licensing requirement from day one.
How Do HMOs Appear in Searches and Planning History?
HMO licensing itself doesn’t always appear on Local Authority Searches, but planning records may show a prior change of use or HMO‑related conditions. Enforcement history can also surface through local authority enquiries. Some environmental reports highlight areas heavily populated with HMOs, while tenancy schedules and seller replies (such as TA6 or TA7 forms) may confirm whether the property has been used as an HMO. In some cases, fire risk assessments or electrical safety certificates hint at HMO occupation even when not explicitly stated.
HMO Licensing vs Planning Permission
Clients often assume that HMO licensing and planning permission are the same thing, but they’re completely separate systems with different purposes. Planning permission governs the use of the property – for example, changing from a single dwelling (C3) to a small HMO (C4), or to a larger sui generis HMO.
Licensing, on the other hand, deals with the safety, standards and management of the home, including fire measures, amenities and occupancy limits. A property can have the correct planning use but still need an HMO licence, and it’s equally possible for a property to hold a licence even though planning permission for HMO use has not been secured. The key message for clients is simple: neither system substitutes for the other, and both must be right for the tenancy to be compliant.
What Should Buyers Be Aware Of?
If a buyer intends to continue renting the property as an HMO, they must ensure that the appropriate licence is in place or be prepared to apply for one before tenants move in. Buying an unlicensed HMO can expose a new landlord to enforcement action, rent repayment orders or penalties. If the buyer intends to convert the property back to a single dwelling, they should know whether any planning changes need to be reversed. For investors, understanding local licensing schemes also matters – some councils restrict the number or density of HMOs in certain neighbourhoods.
What About Lender and Insurance Requirements?
Some mortgage lenders have specific requirements for HMOs due to the increased risk profile and management responsibilities. Specialist buy‑to‑let or HMO products may be required. Insurers may ask about occupancy levels, fire safety measures, alarms, locks and escape routes before offering cover. Ensuring clients understand this early avoids last‑minute complications when arranging finance.
HMOs add an additional regulatory layer to a transaction, but with the right due diligence, they are entirely manageable. By helping clients understand how licensing works, how it differs from planning, and what obligations they may inherit on completion, conveyancers can give clear, practical advice that reduces risk and supports confident buying decisions – whether for an investor or a first‑time landlord.
