What Is HMO Property? A Complete Guide to Houses in Multiple Occupation

Ever wondered what those shared houses full of students or young professionals are called? Yup, those are HMO properties—short for House in Multiple Occupation. If you’ve heard terms like house share or multi-tenant flat, you’ve already brushed up against the concept. They’re super common in university towns, city centers, and places where rent can be sky-high.

Whether you’re a student hunting for affordable housing or a landlord looking to boost rental income, understanding HMOs is essential in today’s rental market. And if you’re confused about licenses, rules, or whether it’s right for you—don’t worry. We’re about to break it all down, step-by-step, in the easiest way possible.

What Does HMO Mean in Housing?

An HMO (House in Multiple Occupation) is a type of rental property where three or more unrelated people live together and share common facilities like the kitchen, bathroom, or living area. It’s often referred to as a house share—common in student towns, big cities, and among young professionals. Whether you’re renting or investing, understanding what qualifies as an HMO is essential, especially because these properties come with specific legal and safety requirements in the UK. According to GOV.UK, a property is classified as an HMO if it meets all of the following: 

• Three or more tenants live in the property. 
• These tenants form more than one household (i.e., they’re not family). 
• They share basic facilities like a bathroom, kitchen, or toilet. 

A household is considered a single person or members of the same family (siblings, couples, or parent and child). So, if three university students share a house and each rents a separate room—that’s an HMO. 

Who Needs an HMO Property?

HMO properties are designed for people who want affordable, flexible housing—especially in areas where renting an entire property would be too expensive. They’re ideal for those who don’t mind sharing spaces like kitchens and bathrooms and enjoy living as part of a small community. From university students to solo professionals, HMO housing appeals to a wide range of people across the UK. Following are the common tenants living in HMO properties: 

1. Students: HMOs are one of the most popular housing choices for university students. Shared living keeps the rent costs down and offers a social lifestyle close to campus. Over 60% of student off-campus housing in major cities like Manchester and Birmingham falls under HMO classification. 

2. Young Professionals: Recently graduated or early-career individuals often choose HMOs to live in central areas without paying sky-high rents. They benefit from short-term contracts, furnished rooms, and bills-included packages. 

3. Single Adults: People living alone but looking for community or more affordable rent often turn to HMOs. It’s a great option for those new to a city, working part-time, or seeking temporary accommodation. 

4. International Workers and Migrants: HMOs offer a cost-effective way for newcomers to settle in, with all-inclusive rents and flexible terms. Many HMOs are located near business districts, making them ideal for seasonal or contract workers. 

Types of HMO Properties You Should Know About

Not all HMOs are the same. They come in different shapes and setups, depending on how the property is rented out and how the facilities are shared. Different types of HMOs require different levels of licensing and safety compliance. As a landlord, you must register the correct type with your local council. As a tenant, it helps you understand your rights, your responsibilities, and what kind of environment you’re signing up for. Following are various types of HMO Properties: 

• Shared House HMO: A property where a group of unrelated tenants (often students or friends) live together under one joint tenancy agreement. In this everyone shares the kitchen, bathroom(s), and living room. The reason for its popularity is simple setup, social living, and often managed by letting agents who understand student needs. 

• Bedsit HMO: In this a larger property is split into individual rooms rented out and is separately under different tenancy agreements. Each tenant has their own private room, often with a kitchenette or ensuite, but shares some communal facilities like bathrooms or kitchens. It is great for people who want privacy but still want affordable rent and shared amenities. 

• Section 257 HMO: A converted building (usually a large house) that’s been turned into self-contained flats but doesn’t meet the correct building regulations. It applies when the building has been converted into flats, less than two-thirds of the flats are owner-occupied or the conversion didn’t meet 1991 Building Regulations (in England). 

What Are the HMO Licensing Rules in the UK?

If you’re thinking of renting out or investing in an HMO property, understanding licensing laws is a must. These rules help maintain safety and quality for tenants—and keep landlords on the right side of the law. Here’s a breakdown of the three main types of HMO licensing in the UK: 

Mandatory HMO Licensing: You must have a mandatory HMO license if your property is rented out to five or more tenants forming two or more separate households, who share facilities like kitchens, toilets, or bathrooms. 

• For example, a three-floor house with six unrelated people sharing two bathrooms and a kitchen is legally classed as an HMO and must be licensed.  
• Most HMO licenses are valid for 5 years, though some councils may set shorter terms depending on inspections or property history. 
• Not having a mandatory license when required can lead to fines of up to £30,000, legal action, and being blacklisted as a landlord. 

Additional HMO Licensing: Some local councils introduce additional licensing schemes that go beyond the national rules. Under these, even smaller HMOs (with 3 or 4 tenants) may need a license—even if they don’t meet mandatory thresholds. 

• Whether you need an additional license depends entirely on your local authority’s policy. What’s allowed in one borough might be restricted in another. 
• Always check with your local council to see if additional licensing is required in your postcode—especially in cities with dense rental markets or lots of student housing. 

Selective Licensing: Selective licensing doesn’t just apply to HMOs—it affects all private rented properties in certain designated areas, including single-family homes. Councils introduce selective licensing in neighborhoods with problems like anti-social behaviour, poor housing conditions, or low demand for rental homes. This is done to raise standards and protect tenants. 

• If your rental property is in a selective licensing zone, you’ll likely need a license regardless of whether it’s an HMO or not. 
• Failure to apply for selective licensing where required carries the same penalties as HMO non-compliance—including fines and bans. 

Pros and Cons of Living in HMO Property

Choosing where to live during university is a big deal—and if you’ve been browsing rental options, chances are you’ve come across the term “HMO” (House in Multiple Occupation). For students across the UK, HMOs are one of the most popular types of housing, especially after the first year when many move off-campus.  

Living in an HMO usually means you’ll rent a private bedroom in a shared house, with common spaces like the kitchen, living room, and sometimes bathrooms used by everyone. Here’s a quick and honest pros and cons of living in an HMO: 

Pros of Living in an HMO Property: 

1. Affordable Rent: HMOs are usually cheaper than renting a flat on your own. Since you’re sharing the space (and bills!) with others, it’s easier to manage costs. 

2. All-Inclusive Bills: Most HMO student properties come with all bills included—water, gas, electricity, and even Wi-Fi. That means no nasty surprises and no awkward fights over splitting bills at the end of the month. 

3. Social Atmosphere: HMOs are perfect if you enjoy living with other people. You’ll meet new friends, cook together, study together—or just chill after lectures. It’s especially helpful for international students or anyone new to the city. 

4. Fully Furnished & Ready to Go: Student HMOs are typically move-in ready with everything you need: bed, desk, wardrobe, shared kitchen appliances, washing machine—you name it. You won’t have to spend on extra furniture. 

Cons of Living in an HMO Property: 

1. Less Privacy: Since you’re sharing with others, personal space can be limited. You’ll likely have your own bedroom, but bathrooms, kitchens, and living areas are shared. That means less peace and quiet, especially during exam season. 

2. Personality Clashes: Let’s face it—not everyone will load the dishwasher or clean up after themselves. You might end up with a noisy roommate or someone who loves late-night karaoke. It happens! 

3. Shared Bathrooms & Kitchens: You may need to wait your turn for the shower or kitchen during busy times. If you like having your own space for everything, this setup might take some getting used to. 

4. Maintenance Depends on Landlord: Some HMO landlords are amazing others not so much. If the heating breaks or Wi-Fi goes out, you’ll need a responsive landlord or letting agent. Always read reviews before signing! 

How to book an HMO Property?

If you’re a student planning to live off campus, booking an HMO (House in Multiple Occupation) can be one of the most practical and cost-effective options. Whether you’re starting university, moving out of halls, or just looking for a more social housing experience, HMO properties offer shared spaces, individual rooms, and often lower living costs. But navigating the process for the first time can feel confusing—especially when it comes to finding a licensed home, understanding contracts, or making deposits. So, here’s a simple guide to help you book an HMO property confidently and stress-free: 

1. Start Your Search Early: The student housing market gets busy fast—especially near popular universities. It’s best to begin searching for an HMO property at least 3 to 6 months before your course starts, especially if you’re moving in during peak academic months like August or September. This gives you more options to choose from and increases your chances of finding affordable and well-located properties. 

2. Use Trusted Student-Friendly Platforms: Begin your search on reliable housing websites like University Living or university-accredited housing portals. Stick with these licensed student letting agents as they specialize in HMOs and understand student needs. This ensures you’re dealing with verified listings and proper contracts. 

3. Verify the HMO License: Not all shared houses qualify as legal HMOs. If you’re moving into a property with five or more people forming more than one household, it must have a valid HMO license under UK law. Ask the landlord or letting agent to show proof of the license—or check the local council website where HMO registers are usually public. 

4. Book a Viewing—Don’t Skip This!: Whether it’s in person or virtual, always try to view the HMO property before agreeing to anything. Pay attention to room sizes, shared kitchen and bathroom conditions, security features, and cleanliness. Don’t be shy—ask current tenants about their experience living there. It’s the best way to know what to expect in terms of landlords, neighbors, and utility costs. 

5. Understand the Tenancy Agreement: Once you’ve found the right property, ask for a copy of the tenancy agreement. Read it carefully to understand your obligations—especially when it comes to bills, deposits, house rules, maintenance, and cleaning duties. 

6. Pay a Holding Deposit to Secure the Room: When you’re ready to book the room, you’ll likely need to pay a holding deposit, usually equivalent to one week’s rent. This secures the room while the paperwork is being processed. Make sure the landlord or agent gives you written confirmation and outlines how the holding deposit will be deducted or refunded. 

7. Submit Your Documents: Before moving in, you’ll be asked to provide some documents such as Student ID card or university acceptance letter, Guarantor details (usually a parent or guardian), Proof of income or student funding (in some cases) and previous landlord references, if applicable. Have these ready to avoid delays in finalizing the agreement. 

8. Sign the Contract and Get Ready to Move In: Once your documents are approved and the tenancy agreement is signed, you’re officially settled. Make sure you receive a copy of the signed agreement, deposit protection certificate, and inventory list. Confirm your move-in date, and you’re good to go!

Conclusion

So, now that you’ve got the full picture—what is an HMO, how it works, who it’s for, and how to book one—hopefully the mystery is gone! Whether you’re a student looking for affordable shared housing, a young professional wanting a flexible setup, or just someone who likes the idea of communal living, HMOs can be a great option. Looking to move into an HMO? Start early, check for licenses, and always read the fine print. Once you’re in, it could be one of the most fun and budget-friendly living experiences you’ll have! 

Frequently Asked Questions