HMO licensing information

If you own or manage a HMO you will need a licence for the property. It is a criminal offence to operate a licensable HMO without a licence. Landlords who are caught operating a HMO without a licence may be fined or prosecuted.

The Gloucester City Council Designation of an Area for Additional Licensing of HMOs 2026 designation was made on 9 June 2026. This HMO licensing designation shall come into force on 21 September 2026.

Read the Additional Licensing designation notice.

This additional licensing scheme covers every ward in Gloucester. It applies to all HMOs that:

• are occupied by 3 or more people forming 2 or more households
• fall within section 254 of the Act
• are not already required to have a mandatory HMO licence

The scheme also applies to certain HMOs under section 257 of the Act. These are buildings converted into self-contained flats where:

• the conversion did not meet the Building Regulations in force at the time, and still does not meet them
• less than two-thirds of the flats are owner-occupied

Each HMO licence that is granted will come with specific conditions that the licence holder will be bound to comply with, These typically relate to the day-to-day management of the property, but may also limit the number of occupiers depending on the level of amenities and space available.

You must hold a separate licence for each qualifying HMO you own or manage. If you have more than one, you will need to apply and pay for each individually.

 Licences will be granted for a duration of up to 5 years. Operating a licensable HMO without a licence is an offence under Section 72 of the Housing Act 2004, and breaching a licence condition is a separate offence for each breach. Where necessary, the council will act in line with its Enforcement and Regulation Policy — this can mean a Civil Penalty Notice or prosecution, with a maximum fine of £40,000 for a Civil Penalty and an unlimited fine on conviction.

Who can be a licence holder?

The proposed HMO licence holder should be the most appropriate person to hold a licence. This should be the person in control of the property, for example, the property owner, or a manager with full management responsibility who receives the rent from tenants.

A licence can be issued to one person, or a limited company. It cannot be issued to a company name that is not a limited company.

There does need to be a connection between the proposed licence holder and the property. 

The licence holder should be located in the UK and ideally within reasonable travelling distance of the property. Alternatively, a local manager can be appointed as the named contact. The licence holder and those involved with the management of the property must be fit and proper to hold a licence.

Licences are not transferable. If you're selling an HMO, you must tell us once the sale has completed and your licence will be revoked. The new owner will need to apply and pay for a license if they want to continue operating it as an HMO. 

Fit and proper person and cause for concern assessment

The council must undertake checks to ensure that the proposed licence holder (and the manager, if different) is a fit and proper person. In deciding whether a person is fit and proper they must take into account:

• any previous convictions involving fraud or other dishonesty, violence, drugs or specified sexual offences
• contraventions of housing or landlord and tenant law
• whether the person has practised unlawful discrimination
• whether the person has acted otherwise than in accordance with any applicable code of practice approved under section 233

Careful consideration will be given to any application, or existing licence, where the fit and proper person making the declaration has contravened housing or landlord and tenant law, or where there is evidence of poor management, an adverse history, prosecutions, or simple cautions.

The council will also consider whether the proposed licence holder has been previously:

• refused an HMO licence
• issued a reduced term HMO licence

The cause for concern test helps Gloucester City Council focus on landlords who may be causing problems. Good landlords have fewer checks, while landlords or agents who do not meet the required standards receive more support, monitoring, and action to improve their properties. If you do not meet the fit and proper person criteria, you must appoint a manager for the property who does.

When granting a licence, the Council will also determine that suitable financial and management arrangements are in place for the management of the HMO and that the HMO is suitable for occupation by a specified number of tenants based on the minimum standards.

Licensing decisions will be guided by the Council's enforcement and regulation policy and supporting appendices.

HMO licence register

There is an available HMO licensed property register of all the premises licensed as HMOs.

If you have any enquiries about a property which has been licensed or which you feel should be licensed and is not, please contact us.