Landlords price the licence fee and the risk of not having one. Almost nobody prices what sits underneath: two separate sets of obligations, breachable independently, each with its own penalty.
- Licence conditions — attached to your licence under sections 67 (HMO) or 90 (Part 3) of the Housing Act 2004.
- The Management of Houses in Multiple Occupation (England) Regulations 2006 — which apply to every HMO whether or not it is licensed.
You can hold a perfectly valid licence and be in breach of both.
Licence conditions
Mandatory conditions include producing gas safety certificates annually, keeping electrical appliances and furniture safe, installing and maintaining smoke alarms, and supplying occupiers with a written statement of terms.
Discretionary conditions vary by council and are where the surprises live: maximum occupancy per room, minimum room sizes, waste management arrangements, anti-social behaviour measures, periodic inspection requirements, or a named manager.
Breach is an offence under section 72(3), and attracts a civil penalty of up to £30,000 under s.249A as an alternative to prosecution.
The management regulations
These bind the manager of every HMO regardless of licensing, and cover: providing your name, address and contact details to occupiers and displaying them in the property; fire safety measures; water supply and drainage; gas and electricity supply and safety; common parts, fixtures and fittings; living accommodation; and waste disposal.
Breach is an offence under section 234(3) of the Housing Act 2004. On summary conviction the fine is unlimited — the pre-2015 maximum was converted by LASPO s.85, so the figure you will find quoted is almost certainly stale.
The one nobody does
Regulation 3 requires the manager's name, address and contact details to be displayed in a prominent position in the house. It is trivially cheap, trivially easy to check on an inspection, and is among the most commonly found breaches — an officer standing in the hallway can establish it in five seconds.
Room sizes
For a mandatorily licensed HMO the statutory minimums are 6.51 m² for one person over 10, 10.22 m² for two persons over 10, and 4.64 m² for a child under 10. A council may impose stricter minimums as a licence condition.
Letting a room below the minimum breaches the licence, and the council can require it not be used as sleeping accommodation — which removes the income while the mortgage continues.
How the numbers stack
A single inspection finding an unlicensed HMO with no displayed manager details and an over-occupied room can produce: a s.249A penalty for the licensing offence, a separate penalty or prosecution for the management regulations breach, a rent repayment order of up to two years' rent, and a prohibition on using the room.
These are cumulative, not alternatives.
Wales
Part 2 of the 2004 Act and the licensing regime apply in Wales, with equivalent Welsh management regulations. Rent Smart Wales registration and licensing sit on top and are separate.
Check whether your property is caught. The free compliance check covers HMO thresholds and your council's position; the fine calculator prices the exposure.
Information tool, not legal advice.