
Houses in Multiple Occupation(HMOs) can offer significantly better yields than standard lets—6-8% in Bathcompared to 3.5-4.5% for conventional rentals. However, they come withadditional regulatory requirements.
Bath has an estimated 3,000HMOs, many serving the student population from the University of Bath and BathSpa University.
What is an HMO?
A House in Multiple Occupationis a property rented to three or more people who form more than one householdbut share facilities such as bathrooms, kitchens, or toilets.
The Definition: • Three or morepeople (occupants, not tenancies) • More than one household (unrelated sharerseach form their own household) • Sharing facilities (kitchen, bathroom, ortoilet)
Common HMO Scenarios: Studenthouse shares, professional house shares, bedsits with shared kitchens, largerproperties let room-by-room.
HMO Licensing in Bathand North East Somerset
Current Position (2026):B&NES operates mandatory HMO licensing only. There is no additional orselective licensing scheme in force.
History: B&NES previouslyoperated an Additional Licensing Scheme covering smaller HMOs (3-4 occupants).This ended on 31 December 2023 and was not renewed.
What This Means: Only largerHMOs (5+ people from 2+ households) require licensing. Smaller HMOs don't needa licence but must still meet fire safety, amenity, and managementregulations—and may require planning permission under Article 4.
Mandatory LicensingRequirements
Which Properties Need aLicence: • Occupied by 5 or more people • From 2 or more separate households •Sharing at least one facility
Licence Fees: • New licenceapplication: £995 • Renewal application: £895 • Licence duration: Up to 5 years
Who Can Hold a Licence: Must bea "fit and proper person." Council checks criminal record, housinglaw violations, management competence.
Article 4 Direction:Planning Requirements
Beyond licensing, converting aproperty to HMO use in parts of Bath requires planning permission.
What is Article 4 Direction:Normally, changing a dwelling house (C3) to a small HMO (C4, 3-6 people) ispermitted development. An Article 4 Direction removes this right, meaningplanning permission IS required.
Bath's Article 4 Coverage:Covers central Bath and surrounding residential areas for C3 to C4 change ofuse.
Implications: • Existing HMOs:Established use rights apply—no retrospective permission needed • Newconversions: Planning permission required, not guaranteed • Large HMOs (7+):Always require planning permission regardless of Article 4
The ApplicationProcess
What You'll Need: • Completedapplication form • Floor plan showing room sizes • Gas Safety Certificate •Electrical Installation Condition Report (within 5 years) • Fire riskassessment • Evidence of smoke and carbon monoxide alarms • Evidence of fire doorswhere required • Energy Performance Certificate • Proof of ownership ormanagement authority • Fit and proper person declaration • Payment of licencefee
Process: Submit application →Initial review → Inspection (usually within 8 weeks) → Inspection report →Complete improvements if required → Licence issued
Timescales: Allow 8-12 weeksassuming no significant issues.
Safety and PropertyStandards
Fire Safety: • Fire doors:Required on all rooms opening onto escape routes (FD30 with intumescent strips)• Escape routes: Clear, unobstructed • Smoke alarms: Interlinked mains-poweredon each floor • Fire blankets/extinguishers: May be required in kitchens •Emergency lighting: May be required in larger HMOs
Room Sizes: • Single occupancy:6.51 m² minimum • Double occupancy: 10.22 m² minimum
Amenities: • Kitchens:Generally one full kitchen for every 5 people • Bathrooms: Generally one forevery 5 people • Heating: Adequate in all rooms
Penalties forNon-Compliance
Operating Without a Licence: •Criminal prosecution: Unlimited fine • Civil penalty: Up to £30,000 • RentRepayment Order: Tenants can claim up to 12 months' rent back • No Section 21:Cannot serve valid notice while unlicensed
Breaching Licence Conditions:Unlimited fine, civil penalty up to £30,000, licence revocation.
B&NES Council activelyenforces HMO regulations.
HMO Management BestPractice
Clear House Rules: Explicitrules for shared areas, cleaning, noise, guests, behaviour.
Regular Inspections: Monthly orquarterly—more wear and tear with multiple occupants.
Responsive Maintenance: Promptresponse to kitchen/bathroom problems prevents frustration.
Managing Tenant Turnover:Efficient processes for referencing, check-in, check-out.
Is HMO InvestmentRight for You?
HMOs can deliver strongreturns—potentially double the yield of standard lets. However, they requirehigher upfront investment in fire safety and amenities, ongoing compliance,more intensive management, and understanding of planning restrictions.
For landlords willing to meetthese requirements, the Bath HMO market offers genuine opportunity.
