HMO Licence vs Planning Permission: What's the Difference and Do You Need Both?
They are separate things, issued by different council departments, for different reasons. You may need both - plus building regulations approval. This guide explains each one, when they apply, and what happens if you get it wrong.
TL;DR - The Quick Answer
An HMO licence is permission to operate a house in multiple occupation, issued by the council's housing department under the Housing Act 2004. Planning permission is permission to change a property's use class (e.g. from C3 dwellinghouse to C4 HMO), issued by the planning department under the Town and Country Planning Act 1990. Building regulations approval covers fire safety, means of escape, and sound insulation, issued by building control. These are three separate legal requirements from three separate departments. Having one does not give you the others. Operating an HMO without a required licence carries a civil penalty of up to £30,000 per offence, and tenants can reclaim up to 12 months' rent through a Rent Repayment Order. Operating without planning permission risks an enforcement notice, prosecution, and an injunction requiring you to stop the use.
The Three Approvals: Planning, Licensing, and Building Regulations
The single biggest source of confusion for new HMO investors is assuming that one approval covers everything. It does not. There are three entirely separate legal frameworks, each run by a different council department, each with its own application process, fees, and penalties for non-compliance.
Think of it this way: planning permission asks "can this building be used as an HMO?" Licensing asks "is this HMO safe and well-managed enough to operate?" Building regulations ask "does the physical building meet fire safety and construction standards?"
| Planning Permission | HMO Licence | Building Regulations | |
|---|---|---|---|
| What it controls | Change of use (land use) | Standards of management & safety | Fire safety, structure, insulation |
| Legislation | Town & Country Planning Act 1990 | Housing Act 2004 | Building Act 1984 |
| Council department | Planning department | Housing / environmental health | Building control |
| Typical fee | £293-578 | £500-1,500 | £200-900 |
| Duration | Permanent (unless conditions) | 5 years (then renewal) | One-off sign-off |
| When needed | When changing use class | When operating as HMO | When doing physical works |
| Penalty for breach | Enforcement notice / injunction | Up to £30,000 civil penalty | Prohibition notice / prosecution |
Source: GOV.UK, Housing Act 2004, Building Regulations 2010 • Data as of 2026
Planning Permission for HMOs
Planning permission for HMOs is about change of use. Under the Use Classes Order, a standard house is Class C3 (dwellinghouse) and a small HMO (3-6 unrelated people) is Class C4 (house in multiple occupation). A large HMO (7+ people) falls outside the use classes entirely and is classified as Sui Generis (a class of its own). For a detailed guide on when planning permission is required, see our full HMO planning permission guide.
When You DO Need Planning Permission
- Article 4 area: If your property is in an area covered by an Article 4 direction removing C3-to-C4 permitted development, you need planning permission for any HMO conversion
- Large HMO (7+ people): Converting to a large HMO (Sui Generis) always requires planning permission, regardless of location
- External alterations: If the conversion involves changes to the building's external appearance (new fire escapes, additional doors, bin stores), separate planning permission may be needed for the works
When You Do NOT Need Planning Permission
- No Article 4, small HMO (3-6 people): The change from C3 to C4 is permitted development under the GPDO, so no planning application is needed
- Already C4: If the property is already lawfully used as a C4 HMO, no change of use is required
Important: Even where planning permission is not required, you should still consider obtaining a Lawful Development Certificate (LDC). This confirms the use is lawful and protects you if the council later introduces an Article 4 direction or questions whether the HMO use was established.
HMO Licensing Explained
HMO licensing is governed by the Housing Act 2004 and is administered by the council's housing or environmental health department. Its purpose is to ensure that HMOs are safe, not overcrowded, and properly managed. There are three types of licensing scheme, and your property may fall under more than one.
1. Mandatory Licensing
Since October 2018, mandatory HMO licensing applies to all HMOs occupied by 5 or more people forming 2 or more separate households, regardless of the number of storeys. The previous requirement that the property be at least 3 storeys was removed by the Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018. This applies across all of England - no council can opt out.
Key conditions include minimum room sizes (6.51m² for one person, 10.22m² for two), adequate kitchen and bathroom facilities, and a fit and proper person test for the licence holder. Licences last up to 5 years and must be renewed before expiry.
2. Additional Licensing
Councils can introduce additional licensing schemes that cover HMOs not caught by mandatory licensing - typically smaller HMOs with 3 or 4 occupants from 2+ households. These are council-specific: some boroughs have them, others do not. The scheme must be formally designated by the council, usually for 5 years at a time, and applies to defined areas or the whole borough.
In London, many boroughs operate additional licensing. For example, Newham, Tower Hamlets, Hackney, and Southwark all have borough-wide additional licensing in effect. Always check your council's website for current schemes.
3. Selective Licensing
Selective licensing applies to all private rented properties (not just HMOs) in designated areas. Councils introduce these in areas with low housing demand, significant anti-social behaviour, or poor property conditions. If your HMO is in a selective licensing area, you need this licence on top of any mandatory or additional HMO licence. Newham was the first London borough to introduce borough-wide selective licensing in 2013, and many others have followed with area-specific designations.
Licence Application Requirements
- Fit and proper person declaration for the proposed licence holder and manager
- Floor plans showing room sizes, kitchen/bathroom provision, and means of escape
- Gas safety certificate (annual CP12), electrical safety certificate (EICR, every 5 years), and EPC
- Fire safety risk assessment and evidence of fire detection systems
- Management plan covering waste, anti-social behaviour, and tenant referencing
- Fee: Typically £500-1,500 depending on the council and property size (some councils charge per room or per bed space)
Building Regulations for HMOs
Building regulations are the third piece of the puzzle, and the one most often overlooked. When you convert a dwelling to an HMO, the physical works involved - new partitions, additional kitchens/bathrooms, fire doors, escape routes - almost always require building regulations approval. This is assessed by building control (either the council's own department or a private Approved Inspector).
Key Building Regulations Requirements for HMOs
Fire Safety (Part B)
- Fire doors (FD30s) to all habitable rooms
- Protected escape route from all rooms to a final exit
- LD2 grade fire alarm system (interlinked)
- Emergency lighting in escape routes (3+ storeys)
Sound & Other
- Sound insulation between lettable rooms (Part E)
- Adequate ventilation to all rooms (Part F)
- Adequate drainage for additional bathrooms/kitchens
- Structural adequacy of any new partitions or openings
Cost guidance: Expect to spend £5,000-20,000+ on building regulations compliance works for an HMO conversion, depending on the property's existing condition and the number of rooms. Fire safety upgrades alone typically cost £3,000-8,000.
Which Do You Need? Decision Flowchart
Work through these questions in order. The answer is cumulative - you may end up needing all three.
Step 1: Do you need planning permission?
- Will 7+ people live there? → Yes (Sui Generis - always needs planning permission)
- Is the property in an Article 4 area for HMOs? → Yes (C3 to C4 PD rights removed)
- 3-6 people, no Article 4? → No (C3 to C4 is permitted development) - but get an LDC to prove it
Step 2: Do you need an HMO licence?
- 5+ people, 2+ households? → Yes (mandatory licensing - England-wide)
- 3-4 people, 2+ households? → Check if your council has additional licensing
- Any private rental in a selective licensing area? → Yes (selective licence needed too)
Step 3: Do you need building regulations approval?
- Are you doing any physical works (new rooms, fire doors, kitchens, bathrooms)? → Yes
- Is the building changing from single dwelling to HMO use? → Almost certainly yes (fire safety requirements change)
- Existing HMO, no works? → No (but fire safety must still comply)
Common scenario: A landlord buys a 5-bed house in Newham and wants to let it to 5 unrelated tenants. They need: (1) planning permission (Newham has a borough-wide Article 4 direction), (2) a mandatory HMO licence (5 people, 2+ households), (3) a selective licence (Newham has borough-wide selective licensing), and (4) building regulations approval for fire safety works. That is four separate applications to three different council departments.
What Happens If You Don't Have the Right Approvals
The consequences of operating without the correct approvals are severe and vary depending on which approval is missing.
No HMO Licence
- Civil penalty: Up to £30,000 per offence (per the Housing and Planning Act 2016). Some councils actively enforce this - Newham issued over £1.5 million in civil penalties in a single year
- Criminal prosecution: Operating without a licence is a criminal offence carrying an unlimited fine on conviction
- Rent Repayment Order (RRO): Tenants (or the council, for Housing Benefit cases) can apply to the First-tier Tribunal to reclaim up to 12 months' rent. This is in addition to any penalty
- Cannot serve Section 21: You cannot issue a Section 21 (no-fault) eviction notice while the property requires but lacks an HMO licence
No Planning Permission
- Enforcement notice: The council can issue an enforcement notice requiring you to stop the HMO use and revert to a single dwelling. Non-compliance is a criminal offence
- Injunction: In serious cases, the council can seek a court injunction to stop the use immediately
- Planning Contravention Notice: Council can formally investigate, and you are legally required to respond
- Mortgage issues: Operating an HMO without planning permission can void your mortgage terms and insurance
No Building Regulations Approval
- Prohibition notice: Building control can issue a notice prohibiting use until works are completed to the required standard
- Licence refusal: The housing department may refuse or revoke your HMO licence if building regulations have not been met
- Personal liability: If a fire occurs and fire safety works were not completed to building regulations standards, the landlord faces personal criminal liability
How to Apply for Each
Here is the practical process for each application, in the order you should tackle them.
1. Planning Permission (if required)
- 1Check Article 4 status - search your council's planning portal or use our free property checker
- 2Submit via the Planning Portal - application for change of use from C3 to C4 (or Sui Generis for 7+). Fee: £293 for a change of use application
- 3Include supporting documents: floor plans, design and access statement, parking/waste management info
- 4Wait 8-13 weeks for the decision. Neighbour consultation is standard. See our guide to getting planning permission
2. HMO Licence
- 1Apply to the housing department - most councils have an online portal. You can apply before completing works (licence will have conditions)
- 2Submit required documents: floor plans, gas/electrical certificates, fire risk assessment, EPC, management plan
- 3Pay the fee: typically £500-1,500 (some councils split this into application + licence issue fees)
- 4Expect an inspection - the council will visit the property, typically within 4-8 weeks of application
- 5Licence issued - valid for up to 5 years. The licence will list conditions you must comply with throughout its term
3. Building Regulations
- 1Submit a building notice or full plans application to your council's building control or an Approved Inspector
- 2Complete the works - fire doors, alarm systems, escape routes, sound insulation, ventilation
- 3Inspections during and after works - building control visits at key stages
- 4Completion certificate issued - keep this. The housing department will want to see it when processing your licence
HMO licensing and planning permission are separate legal requirements administered by different council departments. Planning permission (from the planning department) controls change of use - C3 to C4 for small HMOs (3-6 people), Sui Generis for large HMOs (7+). Permitted development allows C3 to C4 without planning permission UNLESS an Article 4 direction applies. HMO licensing (from the housing department) controls management and safety standards under the Housing Act 2004. Mandatory licensing applies to all HMOs with 5+ people forming 2+ households since October 2018. Additional and selective licensing varies by council. Building regulations (from building control) cover fire safety, means of escape, and sound insulation. You may need all three independently. Operating without a required HMO licence carries a civil penalty of up to £30,000 and tenants can reclaim up to 12 months rent via a Rent Repayment Order. Mayfair Studio handles HMO planning applications from £1,295.
Frequently Asked Questions
Do I need both an HMO licence and planning permission?
It depends on the property and location. An HMO licence is always required if the property meets the licensing thresholds (5+ people from 2+ households for mandatory licensing, or smaller HMOs in councils with additional licensing schemes). Planning permission is required if you are changing the use class in an Article 4 area (C3 to C4) or creating a large HMO (7+ people, Sui Generis). Where both thresholds are met - which is common - you need both. They are separate legal requirements from separate council departments: the housing department issues licences, the planning department handles planning permission. Having one does not give you the other. Source: GOV.UK: Houses in Multiple Occupation.
What is the penalty for operating an HMO without a licence in the UK?
Operating an HMO that requires a licence without one is a criminal offence under the Housing Act 2004. The council can impose a civil penalty of up to £30,000 per offence (per the Housing and Planning Act 2016), or prosecute in the magistrates' court where conviction carries an unlimited fine. In addition, tenants can apply to the First-tier Tribunal for a Rent Repayment Order to reclaim up to 12 months' rent. The landlord also cannot serve a Section 21 no-fault eviction notice while the property is unlicensed. Some London boroughs are particularly active enforcers - Newham, for example, has issued millions of pounds in civil penalties.
Can I get an HMO licence without planning permission?
Yes - the licensing and planning systems are entirely separate. The housing department will process your licence application regardless of your planning status. However, this does not make you compliant. If the HMO use requires planning permission (e.g. because of an Article 4 direction) and you don't have it, you are in breach of planning control even if you hold a valid licence. The planning department can still issue an enforcement notice requiring you to stop the use. Having a licence does not provide any planning defence.
What is the difference between mandatory, additional, and selective licensing?
Mandatory licensing applies across all of England to HMOs with 5 or more people from 2 or more households (Housing Act 2004, amended 2018 to remove the storey requirement). Additional licensing is a council-specific scheme that extends licensing to smaller HMOs not caught by mandatory licensing - typically 3-4 person HMOs. Selective licensing applies to ALL private rented properties (not just HMOs) in designated areas with low demand, ASB, or poor conditions. A property can be subject to more than one scheme - for example, a 5-bed HMO in a selective licensing area needs both a mandatory HMO licence and a selective licence.
Do I need building regulations approval for an HMO conversion?
Almost certainly yes. Converting a single dwelling to an HMO triggers building regulations requirements for fire safety (Part B), including fire doors, protected escape routes, and interlinked fire alarm systems. If you are creating new rooms, kitchens, or bathrooms, those works also need building regulations approval for drainage, ventilation, sound insulation, and structural safety. Building regulations approval is separate from both planning permission and HMO licensing. The housing department may refuse to issue your HMO licence if building regulations works have not been completed.
What is a Rent Repayment Order and how does it work?
A Rent Repayment Order (RRO) is a tribunal order requiring a landlord to repay up to 12 months' rent to tenants (or to the local authority where Housing Benefit was paid). RROs are available under the Housing and Planning Act 2016 where the landlord has committed certain housing offences, including operating an unlicensable HMO without a licence. Tenants apply to the First-tier Tribunal (Property Chamber). The tribunal considers the landlord's conduct, financial circumstances, and whether the offence was deliberate. RROs are in addition to any civil penalty or criminal prosecution - the landlord can face all three.
How much does an HMO licence cost?
HMO licence fees vary by council and property size. Typical costs are £500-1,500 for a 5-year mandatory licence. Some councils charge higher fees for larger properties or split the fee into an application fee and a licence issue fee. Additional licensing fees are usually similar. Selective licensing fees tend to be lower, around £300-800. Renewal fees are often slightly lower than first applications. On top of the licence fee, budget for the required safety certificates: gas safety (£60-100), EICR (£150-300), EPC (£60-120), and fire risk assessment (£200-500).
Can I convert a house to an HMO without planning permission?
If the property is not in an Article 4 direction area for HMOs, and the HMO will house 3-6 people, then the change of use from C3 (dwelling) to C4 (small HMO) is permitted development under the General Permitted Development Order. No planning application is needed. However, if the property IS in an Article 4 area, or you want to house 7+ people (Sui Generis), planning permission is required. Even where permitted development applies, you should obtain a Lawful Development Certificate to formally confirm the use is lawful. See our full HMO planning permission guide for details.
Summary
HMO licensing, planning permission, and building regulations are three separate legal requirements from three separate council departments. Having one does not give you the others, and the penalties for getting it wrong are substantial - up to £30,000 per offence for licensing breaches, plus potential Rent Repayment Orders, enforcement notices, and criminal prosecution.
The practical advice is straightforward: before purchasing or converting a property to an HMO, check (1) whether the area has an Article 4 direction removing permitted development rights for HMOs, (2) which licensing schemes the council operates, and (3) what building regulations works will be needed. Do all three checks before exchanging contracts.
If you are unsure whether your property needs planning permission, start with our free property checker. It identifies Article 4 directions, conservation areas, and other planning constraints instantly.
Related Articles
HMO licensing in the UK is governed by the Housing Act 2004. Mandatory licensing applies to all HMOs with 5+ people from 2+ households (storey requirement removed October 2018). Additional licensing covers smaller HMOs where councils have designated schemes. Selective licensing covers all private rentals in designated areas. Licence fees are typically £500-1,500 for 5 years. Requirements include floor plans, gas safety certificate, EICR, EPC, fire risk assessment, and fit and proper person test. Operating without a licence carries a civil penalty of up to £30,000, criminal prosecution with unlimited fine, and tenants can reclaim up to 12 months rent via Rent Repayment Order. Separate from planning permission (change of use) and building regulations (fire safety/construction). Mayfair Studio handles HMO planning applications from £1,295.