HMO means house in multiple occupation: a rented home shared by separate households, often using the same kitchen, bathroom or toilet.
HMO stands for house in multiple occupation.
An HMO is usually a rented home occupied by at least three people who form more than one household. They normally share facilities such as a kitchen, bathroom or toilet. This is the basic definition set out in the GOV.UK guidance on houses in multiple occupation.
A household can be one person, a couple or members of the same family. Friends renting a property together will usually count as separate households unless they are related or live together as a couple.
Shared student houses, bedsits and some converted buildings may be HMOs. A property can still be an HMO even when it does not need a licence.
Not every HMO needs a licence. The rules depend on where the property is and how many people live there.
In England, mandatory licensing usually applies where at least five people from more than one household share facilities. However, councils can introduce additional licensing schemes covering smaller HMOs. Landlords should check the current HMO licensing rules with the local council before letting the property.
Different rules apply elsewhere in the UK. For example, Scotland generally requires an HMO licence when a property is rented to three or more unrelated people. Landlords can read the Scottish Government’s HMO licence guidance.
Northern Ireland also has its own definition, licensing process and management standards. More information is available in the Northern Ireland guidance on shared accommodation.
Landlords in Wales should check the rules with their local council, as licensing requirements and local schemes can differ.
HMOs can have extra safety and management requirements because several households share one building.
In England, the HMO management regulations cover areas such as:
Landlords must also meet the wider safety duties for rented homes. Licence conditions or local standards may require further safety measures.
Operating an HMO without a required licence can lead to enforcement action. Landlords should check all licence, planning and safety requirements before changing how a property is occupied.
A standard owner-occupier policy is not designed for a tenanted property. Landlords will usually need suitable landlord insurance.
HMO use may affect whether an insurer can offer cover, the premium, the excess and the policy conditions. This can depend on factors such as:
The duty that applies depends on the type of policy. For a non-consumer insurance contract, part 2 of the Insurance Act 2015 requires the customer to make a fair presentation of the risk. For a consumer insurance contract, section 2 of the Consumer Insurance (Disclosure and Representations) Act 2012 requires the customer to take reasonable care not to make a misrepresentation.
Tell the insurer or broker that the property is an HMO and answer its questions carefully and accurately. Wrong or incomplete information could affect the policy or a later claim.
Cover depends on the insurer and policy. It may include buildings insurance, landlord’s contents cover and landlord liability.
Optional cover may include loss of rent, legal expenses, accidental damage or malicious damage by tenants. Limits, exclusions, excesses and eligibility rules may apply.
Wear and tear, poor maintenance and existing damage are commonly excluded. Security conditions and restrictions for empty rooms or unoccupied properties may also apply. Always check the policy wording and insurance schedule.
We arrange landlord insurance for rental properties through a range of insurers. We do not underwrite every policy ourselves.
When asking us for a quote, tell us that the property is an HMO. We will also need accurate details about the tenants, occupancy, licence and claims history.
Whether cover is available will depend on the full details and the insurer’s requirements. We can explain the main cover, limits, conditions and exclusions before you decide whether a policy meets your needs.
