The Liverpool and Manchester property investment market is constantly growing, but with this comes the risk of HMO (House in Multiple Occupation) landlords facing harsh consequences due to simple mistakes.
We are now in a world where a forgotten deadline can lead to catastrophic consequences so it is more important than ever that HMO landlords are keeping on top of their compliance. Housing enforcement are having a crackdown on HMO landlords and in their eyes there is no excuse for a lapsed license and are slapping offenders with hefty fines which is something that foreign investors buying property in Liverpool and Manchester may not be aware of.
If you are a landlord operating a HMO (House in Multiple Occupation) in England or Wales then it is a legal requirement that you have a HMO license. A HMO license is a permit required for all landlords who are renting out a property which has three or more unrelated tenants living in and share at least one communal area such as a kitchen.
The average price for a HMO license can range from £500 – £2,500*, but the price is often dependent on the size and location of the property. The price of the license is set by each local authority who also has the power to impose additional licensing to certain properties. Licenses are usually granted for five years but this length can also differ and it is up to your local council to determine this.
In Liverpool the price of a HMO license for a property with five bedrooms or below is currently £1,283* and this is split into two payments. The first payment is £466.40* and is taken when an application is submitted and is non-refundable. The second payment is £816.60* and is taken when the council are ready to grant your license.
For a property with ten bedrooms or below the license fee totals to £1,866* and this is also split into two payments of £466.40* and £1,399.60*.
In Manchester a HMO license for a property with five occupants or below is £1,321* with an initial admin fee of £865* and a second payment of £456*. Properties with 10-14 occupants total to £1,521* and are split into two fees of £1,065* and £456*.
Unlicensed landlords can also face repercussions from their tenants who will be able to claim for a RRO (Rent Repayment Order) against them to claim back their rent.
Why are HMO licenses important?
1. Room sizes – all bedroom sizes in a HMO need to be able to accommodate for those living there comfortably. Regulations consist of 4.64 square metres for a child under 10 years old, 6.51 square meters for a person over the age of 10, and 10.22 square meters for 2 people over the age of ten.
2. Shared areas – all shared areas in a HMO such as a kitchen or bathroom need to have adequate space to prevent overcrowding. The minimum size of each shared space depends on the number of tenants living in the property but for every five tenants there needs to be at least one toilet and one bath or shower in the property. Some local councils may impose their own regulations for HMOs in their area so it is important that you check your local guidelines before operating a HMO.
3. Landlord accountability – during the licensing process all landlords must prove that they are fit and proper to manage a HMO. This is known as the Fit and Proper Person test and can include checking for any past criminal convictions to ensure that all landlords are competent to safely manage a property.
4. Tenant safety – With HMOs often being large properties it is important that all safety measures are in place to protect tenants and prevent potential harm or hazards such as damp. The HMO license ensures that all landlords maintain that fire safety measures are in place including fire alarms, fire doors, and fire exits. This license also requires landlord to perform annual gas safety certificates and electrical safety tests and these will be need to sent to your local authority.
Seek expert advice
To apply or renew a HMO license you will need to visit your local council’s website and follow their guidelines. See below links for more details:
Liverpool City Council: https://liverpool.gov.uk/business/licences-and-permits/landlord-licensing/houses-in-multiple-occupancy/apply-for-an-hmo-licence/
Manchester City Council:
https://www.manchester.gov.uk/info/10084/private_landlords_information/7398/houses_in_multiple_occupation_hmo
*All costs correct as per 14/04/25 for current costs please visit the local council website direct for up to date information
