Do I need an HMO licence for 3 tenants?
Short answer: not a mandatory HMO licence – but in London, very probably an additional one. 27 of the 33 London boroughs run additional HMO licensing schemes, and most of them start at 3 people from 2 or more households.
Updated 8 November 2026
What makes a property an HMO?
A house or flat is a house in multiple occupation (HMO) when 3 or more people from 2 or more households live there and share a kitchen, bathroom or toilet.
A household is a family unit: a couple counts as one household, and so does a family living together. So three friends sharing are three households; a couple plus one friend are two households – both are HMOs.
Mandatory HMO licensing starts at 5 people
Every council in England must license HMOs with 5 or more people from 2 or more households. Since October 2018 the number of storeys doesn't matter – a five-person flat share needs a mandatory licence just as much as a five-storey house.
With 3 tenants, you're below that line, so a mandatory licence isn't needed.
Check your property in a minute
Our free licence checker tells you which licence your property needs, borough by borough. If you need one, we prepare the whole application at a fixed price.
Additional licensing catches smaller HMOs
Councils can also bring in additional HMO licensing for smaller shared homes. In London it's the norm rather than the exception: 27 of the 33 boroughs had an additional scheme when we last checked, usually covering 3 or 4 people from 2 or more households.
Some schemes cover the whole borough; others only certain wards. A few also include flats in purpose-built blocks, which landlords often assume are exempt.
Even a single household can need a licence
Many boroughs also run selective licensing, which covers almost any privately rented home in the area – including a flat let to one family or a couple. 21 London boroughs had a selective scheme in at least part of the borough when we last checked.
How to find out for your property
Use our free licence checker: enter the postcode and who lives there, and we'll tell you which schemes apply in that borough and ward. If a licence is needed, we can prepare the whole application at a fixed price.
Questions landlords ask
Do 3 students need an HMO licence?
Not a mandatory licence, but in most London boroughs a property let to 3 students from different households needs an additional HMO licence.
Does a couple and one lodger count as an HMO?
Yes. A couple is one household and the lodger is another, so 3 people from 2 households is an HMO. Whether it needs a licence depends on your borough's additional licensing scheme.
Is a 3-person HMO licence cheaper?
Fees depend on the borough, not just the number of tenants. Some councils charge per bedroom or per habitable room, so smaller HMOs can cost less in those areas.
Check your property in a minute
Our free licence checker tells you which licence your property needs, borough by borough. If you need one, we prepare the whole application at a fixed price.
This guide is general information, not legal advice. Councils change their schemes and fees, so we confirm the position for your address before we accept your job.