How many lodgers can I have in my house?

When you take in more than one lodger, things change slightly. Your house will become a HMO (House in Multiple Occupation).

When does a property become an HMO?

It’s a common misconception that HMO regulations only apply to flatshares where the landlord doesn’t live in the property. In this setup, it’s classified as an HMO when the property is rented out by at least three people who aren’t from the same “household” (i.e. a family), but share facilities like the bathroom and kitchen.

It’s possible to have an HMO when you’re a live-in landlord too, though.

In this setup, you’re allowed to have two lodgers before your property is classified as an HMO – but when it gets to three, non-family, paying lodgers, the rules change. It doesn’t matter if the lodgers are related to each other or not – the rule is around forming two or more separate households.

HMO licences

If you’re renting a property out to five or more people, with shared toilet, bathroom or kitchen facilities, this is a large HMO and will require an HMO licence. There used to be an exception based on the number of storeys in the property but this was scrapped in 2018.

There are also some instances in which smaller HMOs require a licence, for example if a local authority requires all HMOs to be licensed in specific areas. Contact your council to see what their approach is in your local area.

An HMO licence is valid for five years – after this point you must renew it.

Safety in HMOs

HMOs are at a greater risk from fires, so it’s important for HMO landlords to put in appropriate fire safety systems and regularly maintain fire alarms. You should send a gas certificate to the council every year and provide safety certificates for all electrical appliances when requested.

Will having an HMO change my Rent a Room scheme allowance?

The Rent a Room scheme allows live-in landlords to earn £7,500 of tax-free income every year, by letting a spare room out in their property.

As a live-in landlord, you don’t get the £7,500 tax-free allowance per lodger. If you earn more than this from renting rooms out in a year - no matter how many lodgers you have - you’ll need to declare anything above the £7,500 for tax.

For more information on HMOs read our HMO Guide for landlords.