HMO Guide
HMO Investing Hub
Houses in Multiple Occupation offer the highest rental yields in UK property. Learn licensing requirements, room standards, fire safety, and management strategies.
What Is an HMO?
An HMO is a property rented to 3 or more tenants from 2 or more separate households who share facilities such as a kitchen or bathroom. HMOs generate significantly higher yields than single-let properties — typically 10-18% gross — because you rent by the room rather than the whole property.
Licensing
Mandatory Licensing: Required for HMOs with 5 or more people from 2 or more households, regardless of the number of storeys. Costs typically £500-1,500 per licence, valid for up to 5 years.
Additional Licensing: Many councils operate schemes covering smaller HMOs (3-4 people). Check your local authority's website.
Selective Licensing: Some areas require all rented properties to be licensed, not just HMOs.
Minimum Room Sizes
| Room Use | Minimum Size |
|---|---|
| Single bedroom (1 person aged 10+) | 6.51 m² |
| Double bedroom (2 persons aged 10+) | 10.22 m² |
| Bedroom (1 child under 10) | 4.64 m² |
HMO Fire Safety
- Fire doors to all bedrooms, kitchens, and living rooms (FD30S rated, self-closing)
- Interlinked fire detection system (Grade A in larger HMOs)
- Emergency lighting on escape routes
- Fire blanket in the kitchen
- Fire extinguishers on each floor
- Clear, unobstructed escape routes
- Fire risk assessment reviewed annually