Liverpool HMO Licensing and Planning Permission
If you’re a landlord in Liverpool considering renting out your property, it’s crucial to understand the rules surrounding HMOs. The regulations can be confusing, especially when it comes to licensing and planning. Often someone might feel that their property is not an HMO (an innocent 3-bed for example) when, in fact, certain criteria mean that it is classed as an HMO under the Planning System.
This is probably the subject that we get asked about most. Licensing, planning, where they overlap and where they are different. I don’t blame people for conflating the two – it’s a complex subject with lots of nuance. This article will untangle this subject, delve into HMO Planning use classes, when a license is required, the difference between licensing and planning and why these two things are often conflated. It is specific to Liverpool as that is our core area but much of what we say here applies nationally.
What is an HMO?
A House in Multiple Occupation (HMO) refers to a property rented out by at least three people who are not from the same household but share common facilities like the bathroom and kitchen. HMOs have been popular amongst students for decades and more recently young professionals. Many HMO rooms have ensuites but this is not always essential. What is essential, is that your property is compliant with all the current legislation, licensing requirements and planning law.
HMO Licensing in Liverpool
In Liverpool, an HMO license is mandatory for properties that meet specific criteria. Typically, if your property houses five or more tenants forming more than one household, you will need an HMO license. This is a legal requirement to ensure the property meets health, safety, and amenity standards.
However, if your property has fewer than five tenants, such as 4 tenants sharing, it will not require a mandatory HMO license.
HMOs and Selective Licensing
That said, Liverpool City Council has the authority to introduce additional or selective licensing schemes in certain areas, which could impose licensing requirements on smaller HMOs. Therefore, it’s always wise to check with the council to confirm whether your property falls under any of these schemes.
For example, large parts of the city are covered by a Selective Licensing Scheme. Under this scheme, even if your property doesn’t require a mandatory HMO license, you may still need a Selective License depending on location. For instance, if you own a four-bedroom HMO that doesn’t meet the threshold for a standard HMO license, you could still be required to obtain a Selective License if your property falls within a designated area covered by the scheme.
If your property is in a Selective Licensing Area, but it already has an HMO License, for example it is a 5-bed HMO, then it does not need a HMO License in addition to this.
Licensing vs. Planning: What’s the Difference?
A common misconception among landlords is the confusion between HMO licensing and planning permissions. While both terms relate to the management of HMOs, they are distinct and largely unrelated processes. See the table below for a full breakdown.
1. HMO Licensing:
HMO licensing is a legal requirement enforced by the local council to ensure that properties with multiple tenants meet safety and quality standards. The license typically covers fire safety measures, adequate living space, proper facilities, and the overall condition of the property. Licensing is about protecting the tenants’ welfare and ensuring landlords maintain suitable living conditions.
2. Planning Permission:
Planning permission, on the other hand, is related to the use of the property and is governed by the planning system. Under planning regulations, when 3-6 unrelated people occupy a property, it is classified as a C4 HMO. This classification doesn’t automatically mean the property needs a license; it simply acknowledges the property’s use as an HMO under planning law.
There is a nationally applied permitted development (PD) right to convert a dwellinghouse (c3) into an HMO (c4). So many HMO conversions do not need planning permission. However, many councils (including Liverpool City Council) have removed these PD rights with the introduction of Article 4 Directives. I have written more about Liverpool’s Article 4 Directive here. So if you want to convert a dwellinghouse (c3) into an HMO (c4) but your property is in an Article 4 area, you will need full planning permission because your PD rights have been removed.
Likewise, an HMO that houses 7 or more people is not classed as an HMO (c4) under the planning system use classes, it is classed as Sui Generis. There are no PD rights to convert to Sui Generis so if you want to convert a dwellinghouse (c3) into a 7 or more-bed HMO (Sui Generis) then you will ALWAYS need planning permission, regardless of whether it is in an article 4 area or not.
The below table should help to clarify this further:
No. of Unrelated Occupants |
Planning Use Class |
Needs HMO License in Liverpool |
Needs Selective License in Liverpool |
Permitted development to change Use Class from dwellinghouse (C3) |
| Less than 3 | Dwellinghouse (C3) | No | Depends on area | N/A |
| 3 | HMO (C4) | No | Depends on area | Yes – unless in Liverpool’s Article 4 Area |
| 4 | HMO (C4) | No | Depends on area | Yes – unless in Liverpool’s Article 4 Area |
| 5 | HMO (C4) | Yes | No | Yes – unless in Liverpool’s Article 4 Area |
| 6 | HMO (C4) | Yes | No | Yes – unless in Liverpool’s Article 4 Area |
| 7 or more | Sui Generis | Yes | No | No – requires full planning permission, regardless of area |
Do Three Tenants in a Property Require an HMO License?
As per the above table, if you have three tenants living in your property, this falls under the C4 HMO classification in the planning system. However, this classification does not necessarily mean that your property requires an HMO license. Liverpool City Council only stipulate that an HMO License is required for properties housing 5 or more unrelated tenants.
Why Understanding Both Matters
As a landlord, it’s essential to understand both licensing and planning regulations. Failing to obtain the necessary HMO license when required can lead to significant fines and legal complications. Similarly, not adhering to planning regulations can result in enforcement action, including the need to revert the property to its original use or apply for retrospective planning permission.
Final Thoughts
Before renting out your property in Liverpool, particularly to three or more unrelated tenants, make sure you understand the difference between HMO licensing and planning permissions. While both are important, they serve different purposes and are regulated by different authorities. Always check with Liverpool City Council to ensure you comply with all local regulations. This will help you avoid legal issues, ensure the safety and comfort of your tenants, and protect your investment.
Still need help?
Portus Lets are a HMO specialist letting agency based in the Baltic Triangle area of Liverpool City Centre. We manage high-quality HMOs across Merseyside and are the go-to agent for HMO Management in the city.
If you still have some unanswered questions about HMOs in Liverpool, just send an email to hello@portuslets.co.uk and we will be happy to help! Check out our HMO Management offering while you’re at it!