Rooms that meet the standard
Every room is measured against the national minimum sizes and the council's own standards, because an undersized room can cost you a licence or a tenant.
How we check a deal → HMO investment
HMO Property Investment
Ready-let, licensed houses in multiple occupation in established student and professional areas. We check the licence, the planning position and the room sizes before a property reaches you.
An HMO earns more rent from one building than a single let, but it is harder to run and more heavily regulated. We source them for investors who accept that trade-off, and we will tell you if a standard buy-to-let would suit you better.
- Licence and planning checked first
- Fee payable on completion only
- Terms agreed in writing first
- Midlands and northern university cities
What an HMO is
A house in multiple occupation is a property let to three or more people who form more than one household and share a kitchen, bathroom or toilet. Letting room by room produces more rent from the same building than letting it to one family.
The trade-off is work and regulation: more tenancies, more turnover, licensing, stricter fire safety and planning controls. HMOs are also often valued on the income they produce rather than on comparable house sales, which affects both borrowing and resale. We only put an HMO in front of you once those points have been checked.
Licensing: the rules that decide the deal
- Mandatory licensing: five or more people forming two or more households need a licence from the council, however many storeys the building has.
- Additional and selective licensing: councils can also license smaller HMOs, or every rented home in a designated area. We check the scheme for the specific street.
- Room sizes: at least 6.51 square metres for one adult and 10.22 square metres for two. Rooms under 4.64 square metres cannot be used for sleeping.
- Fire safety and amenities: interlinked detection, fire doors, a protected escape route, and enough kitchen and bathroom space for the number of tenants, set by the council's standards.
- Penalties: running a licensable HMO without a licence is an offence that can lead to large civil penalties and rent repayment orders.
This is a general summary, not legal advice. Your solicitor and the council's licensing team will confirm the position on a specific property.
Planning and Article 4 directions
Turning a family house into a small HMO is normally permitted development. An Article 4 direction removes that right, so the change needs planning permission. Nottingham and Leicester both use Article 4 directions for HMOs, and Derby's came into force on 3 May 2025 in designated areas. Nottingham City Council states plainly that permission for new conversions is highly unlikely to be granted.
So we concentrate on existing HMOs with a lawful planning position: a planning permission, or evidence that the HMO use was established before the direction took effect, ideally confirmed by a certificate of lawful use. A licensed, lawful HMO in an Article 4 area is harder to replicate, which protects its value.
What we check in every HMO
Fire safety you can verify
We ask for the current fire risk assessment, alarm test records and gas and electrical certificates, and check that the fire doors and detection are actually there.
Ask about HMOs for sale →Ready-made or conversion?
A ready-made HMO is already licensed, compliant and let. It costs more, but it earns from the day you complete and carries no planning or building risk. A conversion can cost less overall, but you take on the planning question, building regulations, fire safety works, licensing and months without rent, and conversion budgets often overrun.
In Article 4 areas, where new conversions are hard to get approved, we concentrate on ready-made HMOs. Where permission is realistic and you have renovation experience, we will look at conversion opportunities, but we price the works from the viewing, not from a rule of thumb.
The costs an HMO adds
Build these into the numbers before you compare an HMO with a single let.
- Licence fees: set by each council and paid per licence, usually for up to five years.
- Bills: most HMOs are let with utilities, broadband and council tax included, and for an HMO the owner is normally liable for council tax anyway.
- Furnishing and upkeep: furnished rooms, shared kitchens and more frequent redecoration between tenants.
- Management: HMO letting agents charge more than single-let agents, because there are more tenancies and more turnover.
- Insurance and compliance: HMO-specific landlord insurance, fire alarm servicing, emergency lighting checks and a fire risk assessment.
Letting an HMO under the Renters' Rights Act
- Periodic tenancies: since 1 May 2026 every tenancy rolls on month to month, and tenants can leave on two months' notice.
- Student lets: Ground 4A lets landlords of student HMOs regain possession for the next academic year, with four months' notice expiring between 1 June and 30 September, if the conditions are met.
- Rent increases: once a year, using the Section 13 notice procedure, which the tenant can challenge at a tribunal.
- Landlord register: a new private rented sector database is being introduced, and landlords will need to register as it rolls out.
A general summary, not legal advice.
Who HMOs suit
Be honest with yourself about these four before you start.
More capital
HMOs cost more than single lets in the same street, and HMO lenders usually want a larger deposit.
Landlord experience
We usually suggest owning a standard buy-to-let first. Several lenders ask for it anyway.
Time or a management budget
HMO managers charge more than single-let agents because the work is heavier. Self-managing takes real hours every week.
Income before growth
HMOs are bought for rent. Because they are often valued on income, capital growth can lag a family house nearby.
Where we source HMOs
Our HMO briefs focus on cities with large student and young professional populations. In Nottingham that means areas such as Lenton, Dunkirk and Radford; in Leicester, Clarendon Park; in Sheffield, Crookes and Broomhill. Each has its own licensing scheme and planning position, which is why we check them street by street.
Start your HMO brief
Tell us your budget, preferred cities and whether you want students or professionals. We will tell you what is realistic.
HMO investment questions
Do I need an HMO licence?
A mandatory licence is needed where five or more people forming two or more households share facilities, however many storeys the building has. Many councils also run additional or selective licensing that covers smaller HMOs or all lets in certain areas, so the rules depend on the council. Operating a licensable HMO without a licence is an offence.
Can I convert a house into an HMO?
Sometimes. In an Article 4 area, turning a family house into a small HMO needs planning permission, which councils often refuse where HMOs are already concentrated. The house also has to meet room size, amenity and fire safety standards. That is why we concentrate on existing HMOs with a lawful planning position.
Can I get a mortgage on an HMO?
Yes, from specialist HMO lenders. Expect a larger deposit than for a standard buy-to-let and, with some lenders, a requirement for previous landlord experience. HMOs are often valued on their income. We are not mortgage advisers, but we can introduce you to independent brokers who arrange HMO finance.
How much money do I need for an HMO?
More than for a single let in the same street. On a £220,000 HMO a 25% deposit is £55,000 and stamp duty at additional-property rates is £12,900, before legal, survey and lender fees, furnishing and a reserve for voids and repairs.
How does the Renters' Rights Act affect student HMOs?
Student tenancies are now periodic like any other. Ground 4A lets landlords of student HMOs regain possession ready for the next academic year, with four months' notice expiring between 1 June and 30 September, provided the conditions are met. Take legal advice before relying on it.
Do you manage HMOs after purchase?
No. We source and help you buy. HMO management is specialist work, so we introduce you to letting agents who manage HMOs, or you manage it yourself if you have the time and experience.