Barnet HMO Licence Exemptions: Which Properties Are Exempt

Not every shared property in Barnet needs an HMO licence. The Housing Act 2004 lists specific categories that are exempt from both mandatory and additional licensing. Knowing the exemptions matters because applying for a licence you do not need costs time, and failing to apply for one you do need carries civil penalties of up to £40,000.

Statutory Exemptions Under Schedule 14

Schedule 14 of the Housing Act 2004 sets out the property types that fall outside HMO licensing. These exemptions apply in Barnet exactly as they do across England:

Public body accommodation. Properties managed or controlled by local authorities, registered social landlords (housing associations), health authorities or police authorities are exempt. A housing association flat let to three tenants sharing amenities does not need a licence, but a privately owned flat in the same block does.

Student halls managed by educational institutions. Buildings occupied solely by students and managed by a qualifying higher education institution under an approved code of practice. This covers purpose-built student accommodation run by universities — not privately let houses near Middlesex University, even if every tenant happens to be a student.

Religious communities. Buildings occupied exclusively by a religious community for residential purposes.

Owner-occupier with up to two lodgers. A property occupied by the owner (or a member of the owner's household) alongside no more than two unrelated individuals. The owner must genuinely live in the property as their principal home. If you move out and leave three tenants in place, the exemption vanishes immediately.

Properties occupied entirely by one family. Where every occupant meets the Housing Act definition of a family member under Section 258 — spouses, civil partners, cohabiting couples, parents, grandparents, children, grandchildren, siblings, aunts, uncles, nieces, nephews and cousins, including certain step-relations — no individual HMO licence is required for that dwelling regardless of headcount. A qualifying converted block may still need a building-level Section 257 licence.

Two Unrelated Sharers

A point that catches many landlords: letting to exactly two unrelated people sharing a kitchen and bathroom does not trigger any HMO licence in Barnet. The additional licensing threshold starts at three occupants from two or more households. Two sharers from two separate households fall below the line.

This changes when a third person becomes an occupier; a temporary visitor does not automatically count. A partner who occupies the property as their only or main residence, or is treated as doing so under Section 259, can push it into licensable territory.

Temporary Exemption Notices

If a landlord is actively taking steps to make an HMO no longer licensable — for example, serving a lawful notice to regain possession, or converting the property back to single-family occupation — they can apply to Barnet Council for a Temporary Exemption Notice (TEN) under Section 62 or Section 86 of the Housing Act 2004.

A TEN exempts the property from licensing for up to three months. In exceptional circumstances, Barnet may grant a second TEN extending exemption for a further three months. No property can be subject to TENs for more than six months in total.

The important point: submitting a TEN application does not automatically grant exemption. The exemption only takes effect when Barnet issues formal written approval. Until you receive that confirmation, the licensing obligation still stands and unlicensed letting remains an offence.

Proving Your Exemption

Barnet Council does not maintain a register of exempt properties. If you believe your property qualifies for an exemption, the burden of proof sits with you. Keep documentation that supports your claim:

• Owner-occupier exemption — electoral roll registration at the address, utility bills in your name showing consistent occupation, council tax records showing single-person or main-residence status.
• Family-only occupation — tenancy agreements or declarations listing every occupant and their family relationship.
• Two-sharer status — a tenancy agreement naming exactly two tenants plus any occupancy clause limiting the property to those named individuals.

If an Environmental Health Officer inspects the property and finds occupancy that does not match the exemption you are claiming, the council can treat the property as an unlicensed HMO from the date the exemption ceased to apply.

When an Exemption Ends

Exemptions are not permanent. They track the current occupancy and ownership structure of the property. Three situations commonly end an exemption:

1. An owner-occupier moves out, leaving three or more unrelated tenants behind.
2. A family tenancy changes when an unrelated person joins the household.
3. A property that housed two sharers takes on a third occupant.

In each case, the property becomes licensable from the date the change happens. There is no grace period. A landlord who recognises the change early can apply for a licence promptly and benefit from the statutory protection that a pending application provides against prosecution for unlicensed letting.

Getting the Classification Right

Misjudging whether an exemption applies is a high-stakes mistake in either direction. The Barnet Landlord Licensing guide includes a property classification worksheet that walks through the occupancy tests and exemption criteria step by step, so you can confirm your position before deciding whether to apply.

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