When you need a HMO licence
You'll need a licence if you own or manage a property anywhere in Luton and it is occupied by five or more persons, forming two or more households who share common amenities like a bathroom or kitchen.
Landlords must apply for a mandatory HMO license.
Our boroughwide additional licensing scheme, for small HMOs with three or four persons living there has now been agreed and will go live on 1 June 2026 further information is on our Additional licensing webpage.
Operating an house in multiple occupation (HMO) without the proper licence is a criminal offence and carries an unlimited fine on summary conviction or a civil financial penalty of up to £40,000 (civil penalties were increased by the Renters Rights Act 2025 which came into force on 1 May 2026). In addition, tenants may be able to claim back up to two year’s rent from you.
HMO property types
HMO licensing will include the following types of accommodation.
Shared houses or flats
Likely occupiers are students or professionals as a group on one contract.
Bedsits or rooms rented out in houses
Likely occupiers are individuals with no connection to each other and the landlord rents each room separately; the tenant only has exclusive use of own room.
Hostels
Likely occupiers are vulnerable occupiers who may be in need of support to help them to live independently; often run by charities or some care providers. A mandatory HMO license will be required except where these are under the control of a registered social landlord.
If you are a resident landlord
If you are the property owner and you reside in the building with your family and a maximum of two other unrelated persons it is not considered to be an HMO.
If you reside in the building with three other unrelated persons it will not require a licence but must still adhere to oue HMO standards and The Management of Houses in Multiple Occupation (England) Regulations 2006 (Management Regs).
If you live in the building with four or more other unrelated persons, it will be subject to mandatory licensing and you will need to apply for a licence. For the purpose of calculating the number of persons living in the HMO the resident landlord and his household are regarded as one person.
When you do not need a HMO licence
The following property types are excluded from needing an HMO licence:
- where unrelated occupiers live with a family but work for the family, for example as carers or nannies
- HMOs owned by housing associations
- HMOs that are excluded from the definition such as police colleges, university halls, religious communities
- HMOs where conditions are controlled by other regulators such as nursing or children’s homes regulated by the Care Quality Commission
- properties occupied by the property owner and a maximum of two other persons who are not part of his or her household
- properties occupied by no more than two people
- properties operating as ‘Air BnB’ and Bed and Breakfast establishments etc, operating as short term holiday lets where these properties are not the residents’ main or permanent address
Notes
Properties operating as AirBnB, bed and breakfast or similar establishments that are rented as short term lets can be treated as HMOs if they meet the other criteria for an HMO. This applies where the persons living there have been resident there continually for longer than three months or where the property is their only or main residence. The AirBnB website gives advise on hosting rooms.
If you are letting out the whole house as short term lets and do not live there this may be a "change of use" (e.g., from residential to visitor accommodation), which triggers the need for planning permission.
Certain premises are exempt from the requirement to license only
The properties must still meet other repair and management standards if rented out. Exemptions include:
- premises managed or controlled by a local housing authority
- police authority
- metropolitan police authority
- fire and rescue authority
- social provider
- health service body
Housing associations and registered social landlords are exempt from the licensing scheme. Charities that provide residential accommodation are not exempt from requiring a licence however provisions within the housing act do allow us to review, on a case by case basis, whether they should be exempt from paying the fee.
Temporary exemption
You can apply for a temporary exemption from licensing for three months. For this to be agreed you have to satisfy us that you are taking particular steps to ensure that the building will not require licensing. We do not have to grant the exemption. In exceptional circumstances, the temporary exemption can be extended for the maximum of a further three months.
This provision is not available for avoidance or evasion of licensing, since that would be contrary to the purpose of the act. Landlords and managers, therefore, need to demonstrate to us that they are genuinely taking steps to ensure the building ceases to be licensable. Such steps could include entering into a contract for sale of the building with vacant possession.
Simply a proposal to or the act of, putting the property on the market for sale will not normally be sufficient for us to agree to issue a temporary exemption notice from licensing (TEN).