The HMO licensing thresholds landlords get wrong most often

Mandatory HMO licensing kicks in for any property let to five or more people from two or more households who share facilities, regardless of the number of storeys. That much is fairly well known. What trips landlords up is assuming that's the only threshold that matters.

Many councils run additional licensing schemes covering smaller HMOs in their area — sometimes as few as three occupants from two households — and selective licensing schemes that apply to any rental property at all within a designated zone, HMO or not. Both are set locally, which means a property that needs no licence in one borough might need one just a few streets over in the next.

The practical fix is simple but often skipped: check directly with the local council for the specific property address before assuming a licence isn't required, rather than relying on the mandatory national threshold alone.