Houses in Multiple Occupation (HMOs) are properties rented by multiple tenants who share facilities such as kitchens and bathrooms.
To regulate HMOs and ensure proper management, local councils impose different licensing requirements. The three main regulatory measures are mandatory HMO licensing, additional licensing, and Article 4 directions. Each serves a distinct purpose in controlling the standard and proliferation of HMOs in specific areas.
Mandatory HMO Licensing
Mandatory HMO licensing applies across England and is required for all larger HMOs. A property must be licensed under this scheme if it meets the following criteria:
- It is rented to five or more tenants forming two or more households.
- The tenants share facilities like bathrooms, toilets, and kitchens.
- It meets the definition of an HMO under the Housing Act 2004.
The purpose of mandatory licensing is to ensure that large HMOs meet health and safety standards, including adequate fire safety measures, room sizes, and proper management by the landlord. A valid license is issued by the local council and typically lasts up to five years, subject to renewal.
Additional HMO Licensing
Additional licensing is imposed by local councils on HMOs that do not meet the criteria for mandatory licensing but still require regulation due to local concerns. A council may introduce additional licensing if they believe that HMOs in their area are being poorly managed and contributing to issues such as anti-social behavior, poor living conditions, or overcrowding.
Under additional licensing, councils can require landlords of smaller HMOs (such as those rented to three or four tenants forming two or more households) to obtain a license. The application process and conditions are similar to those of mandatory licensing, ensuring landlords maintain proper standards in their properties.
Article 4 Direction
Article 4 is a planning regulation rather than a licensing scheme. It allows local councils to remove permitted development rights, meaning landlords must apply for planning permission before converting a property into an HMO. Normally, converting a house into a small HMO (for three to six occupants) falls under permitted development and does not require planning permission. However, in areas with an Article 4 direction in place, councils have additional control over the number and concentration of HMOs by requiring landlords to seek approval before making such conversions.
Article 4 is typically enforced in areas where there are already high concentrations of HMOs, such as university towns or cities with a large rental market. The purpose is to prevent overdevelopment, protect community balance, and manage local housing needs.
Key Differences at a Glance
| Regulation Type | What It Covers | Who It Affects | Purpose |
| Mandatory HMO Licensing | HMOs with 5 or more tenants forming 2+ households | Large HMOs | Ensures health, safety, and management standards |
| Additional Licensing | Smaller HMOs, typically 3-4 tenants forming 2+ households | HMOs outside mandatory licensing | Addresses local issues like poor management and safety |
| Article 4 Direction | Conversion of properties into HMOs | Landlords in affected areas | Requires planning permission to control HMO numbers |
Conclusion
Understanding the differences between mandatory HMO licensing, additional licensing, and Article 4 directions is crucial for landlords, property investors, and tenants. While mandatory and additional licensing focus on management and safety standards, Article 4 restricts the conversion of properties into HMOs. Landlords should check with their local council to determine which regulations apply to their property, ensuring compliance and avoiding penalties.