If you are considering renting out a house in multiple occupation (HMO), you must check the licencing requirements with your local council as they vary across the country. In Peterborough, for example, new requirements come into force from January 2026.
You will need a separate licence, valid for a maximum of five years, for each HMO that you operate and it must be renewed before it expires.
Is a license needed for your HMO?
An HMO, or houseshare, is a property rented to at least three people from more than one household, but who share facilities such as the bathroom or kitchen. If your property houses five people or more from more than one household, then a mandatory licence will be required under the Housing Act 2004.
In Peterborough, HMOs make up a large proportion of the rented housing sector. To date, an HMO licence is only required if a property is occupied by five or more people or where selective licensing is in place. Selective licensing came into force in designated areas of Peterborough in March 2024 in an initial five-year scheme.
However, Peterborough Council ran a consultation over the summer to extend HMO licensing to any property rented to three or more people from more than one household sharing facilities. The additional licencing requirement was approved by council members on October 2 and will come into force from January 2026.
The landlord should apply for the licence, although a managing agent can do so instead. The application should be fully completed and submitted online along with the correct fee of £1,100 for Peterborough City Council. The paperwork you submit with your application will support many of the following requirements.
Suitable amenities
Amenities must be suitable for the size of the HMO, with adequate size and layout of kitchens and bathrooms as well as sufficient ventilation and space heating. For up to four occupiers, there should be at least one bathroom and toilet.
Required room sizes
Room sizes must meet minimum requirements to ensure compliance in Peterborough, with single letting rooms no less than 10 sq m in size and double rooms no less than 15 sq m for properties without a communal lounge.
‘Fit and proper’ manager
The manager of the HMO – whether it’s the landlord or agent – must be considered to be fit and proper. That’s defined as having no criminal record of breaches of landlord laws or code of practice. As you will see later in this blog, if a manager is prosecuted over non-compliance of licence regulations they are no longer ‘fit and proper’.
Safety requirements
HMO landlords are required to install adequate fire precautions and a means of escape in case of fire. You must also send the council an updated gas safety certificate each year, install and maintain smoke alarms and provide safety certificates for all electrical appliances when requested. All electrical appliances you have provided must also be tested.
The threat of prosecution, fines and bans if you don’t comply
Non-compliance is costly. It can result in a civil penalty of up to £30,000 or prosecution in the Magistrates’ Court and an unlimited fine. Once convicted the manager is no longer deemed to be “a fit and proper person” to hold a licence and so won’t be able to do so in the future.
In addition, a rent repayment offer of up to 12 months from all tenants may be made. With the upcoming changes, HMO licence compliance is even more important to get right.
We Can Help
At Progressive Lets, we are experts in the rental market in the Peterborough area and help landlords find and manage properties within a 50-mile radius. Get in touch to find out more.
