If you're considering renting to students in the UK, you may be wondering whether you need a House in Multiple Occupation (HMO) licence. The short answer? In most cases, yes — and failing to comply can have serious consequences.

What Is a HMO?

A property is classified as a House in Multiple Occupation if it's rented out by three or more unrelated tenants who share facilities like a kitchen or bathroom. This setup is common in student lets, where a single house is shared by a group of students on individual or joint tenancies.

In England and Wales, any property that meets these conditions is likely to require HMO classification — and in many cases, a licence.

When Is a Licence Legally Required?

You’ll need a mandatory HMO licence if:

The property is occupied by five or more unrelated tenants
Tenants share basic facilities (e.g. kitchen, bathroom)
The property is in England, Wales, or Northern Ireland (rules differ slightly in Scotland)

However, local councils have the power to introduce additional or selective licensing schemes — meaning even smaller HMOs (3+ tenants) may require a licence depending on the area. Always check with your local authority.

Why Does It Matter for Student Lets?

Student HMOs are one of the most common setups in university towns and cities. Whether you’re investing in a three-bed terrace in Leeds or a six-bed Victorian conversion in Bristol, you’re likely renting to unrelated individuals sharing communal spaces — which means HMO rules apply.

Licensing isn't optional — landlords can face fines of up to £30,000 for non-compliance, and in some cases, be required to repay rent to tenants under Rent Repayment Orders (RROs).

What Does a HMO Licence Involve?

To obtain an HMO licence, landlords typically must:

Ensure the property meets minimum health and safety standards
Install compliant fire safety systems
Provide appropriate kitchen and bathroom facilities for the number of tenants
Appoint a fit and proper person as the licence holder
Submit a floor plan and pay a licensing fee (usually between £500–£1,000+ depending on the council)

Licences are usually valid for five years, but renewal requirements vary by location.

Alternatives: PBSA and Fully Managed Investments

If you're a hands-off investor or based overseas, managing HMO compliance can be time-consuming. An alternative is Purpose-Built Student Accommodation (PBSA) — fully managed developments where licensing, compliance, and maintenance are handled by professionals. These often come with assured yields and no regulatory hassle.

At APW Group, we help investors source high-performing, fully vetted opportunities across student cities — whether that’s traditional HMO stock or turnkey PBSA.

The Bottom Line

Yes, student landlords often need an HMO licence — especially if renting to three or more unrelated tenants. With local councils tightening regulations, it's essential to stay compliant to protect your investment and rental income.

Interested in student property investment?

Ready to explore accommodations for students?
At APW Group, we specialise in helping investors access pre-vetted, high-yield student properties in the UK’s top university cities. Whether you're exploring licensed HMOs or hands-off PBSA opportunities, our team brings over 30 years of experience to guide you from sourcing the right property to securing finance.

Our team brings over 30 years of experience in property and fixed income investments, guiding you through everything from discovering the perfect property to sourcing lenders.

Looking for your entry point into the student accommodation market? Get in touch today.

Do You Need a HMO Licence for Students?