Gateshead Mandatory HMO Licence: Costs, Application and Requirements for Large Shared Houses

The Licence That Applies Everywhere in Gateshead

Mandatory HMO licensing operates across the entire Borough of Gateshead — not just the 16 Lower Layer Super Output Areas covered by selective and additional licensing. If a property houses five or more people from two or more separate households who share basic amenities like a kitchen, bathroom, or toilet, it needs a mandatory HMO licence regardless of location.

This is a national requirement under Part 2 of the Housing Act 2004, extended to all large HMOs in 2018 when the government removed the three-storey minimum that previously limited mandatory licensing to taller buildings. A five-person shared house on a single floor in any part of Gateshead now falls within scope.

Who Counts as a Separate Household

The household definition follows Section 258 of the Housing Act 2004. People who are married, in a civil partnership, cohabiting as partners, or related (parents, children, stepchildren, grandchildren, siblings, grandparents, aunts, uncles, nephews, nieces, cousins) form a single household. Everyone else — friends, colleagues, fellow students, unrelated tenants — forms their own household.

Five university students sharing a house: five households, five occupants. A couple plus three unrelated sharers: four households (the couple counts as one), five occupants. Both scenarios trigger mandatory HMO licensing.

A family of six — two parents and four children — is one household with six occupants. Despite exceeding the five-person threshold, the single-household status means it's not an HMO at all. It would need a selective licence if it's in a designated LSOA, or no licence if it's outside the 16 areas.

Fees: More Than Selective, More Than Additional

The same discount structure applies: £75 off Part B for accredited landlord membership (NRLA, Safeagent, Propertymark, RICS), and the multi-property discount of £10 per additional property when submitting simultaneously. Early bird discounts applied to the selective and additional schemes but not to mandatory HMO licensing, which is a permanent statutory requirement rather than a time-limited designation.

Floor Plans and Room Size Standards

Mandatory HMO applications require something that selective licence applications don't: scaled floor plans showing room dimensions, amenity locations, and escape routes.

The Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018 set minimum floor areas for sleeping rooms:

• Single occupant aged 10+: 6.51 m² minimum
• Two occupants aged 10+: 10.22 m² minimum
• Single occupant under 10: 4.64 m² minimum
• Below 4.64 m²: cannot be used as a sleeping room under any circumstances

Floor area calculations exclude any section where the ceiling height falls below 1.5 metres — relevant in attic conversions and some older Gateshead terraces with sloping ceilings.

These size standards are mandatory licence conditions. A room that falls below the minimum must not be used as sleeping accommodation. Letting a room that's too small is a licence condition breach, even if the tenant is willing to occupy it.

The Displacement Effect

A mandatory HMO licence sits at the top of the displacement hierarchy. If a property in one of the 16 designated LSOAs qualifies for mandatory HMO licensing, it doesn't also need a selective or additional HMO licence. The mandatory licence completely displaces the discretionary schemes.

This works in the landlord's favour in one sense: you pay for one licence, not two. But mandatory HMO licensing carries the most stringent conditions and the highest fees. The property is subject to room size standards, fire safety requirements, amenity ratios, and management conditions that go well beyond what selective licensing demands.

Ongoing Conditions Specific to Mandatory HMOs

Beyond the standard conditions shared with all licence types (gas safety, electrical safety, smoke alarms, anti-social behaviour management), mandatory HMO licences add:

• Maximum occupancy limits specified on the licence. Exceeding the stated number of occupants is a breach.
• Amenity standards proportional to occupancy: minimum numbers of bathrooms, toilets, and kitchen facilities per occupant.
• Annual fit and proper self-declarations confirming the licence holder's ongoing suitability.
• Fire safety standards that may require interlinked smoke detection or full fire alarm systems depending on building layout.
• Waste management provisions appropriate for higher-occupancy properties.

Breaching any condition carries civil penalties of up to £30,000. Operating a large HMO without a mandatory licence carries penalties of up to £40,000, plus tenants can claim Rent Repayment Orders for up to 24 months of rent.

When Occupancy Changes Push You In or Out

A property that starts as a four-person share (additional HMO territory) becomes subject to mandatory HMO licensing if a fifth occupant moves in. Ensure a mandatory HMO licence is in place before the fifth occupant moves in. The additional HMO licence does not replace the mandatory licence.

Going the other direction — five occupants dropping to four — means the mandatory licence no longer applies, but the property now needs an additional HMO licence in the designated areas. These transitions require proactive management and notification within seven days.

Our Gateshead landlord licensing guide covers the full mandatory HMO application process alongside the selective and additional schemes, with floor plan requirements, room measurement guidance, and the displacement hierarchy worked through with Gateshead-specific examples.

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