Definition

HMO definitions, licensing and planning rules differ across the UK and can also vary by local authority. In England and Wales, a property with at least three tenants forming more than one household who share facilities can be an HMO; mandatory licensing commonly applies to larger HMOs, while local schemes can extend further.

Practical example

A council may require a licence even where the property falls outside the national mandatory-licensing threshold.

Why it matters

The occupancy, licence, planning use, fire standards and valuation approach can all change mortgage eligibility.

HMO mortgage guide

Source and review

Reviewed 16 July 2026. Product criteria and rules can change.

GOV.UK: HMO licences

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