Can an HMO Licence Be Transferred to a New Owner in England?

An HMO licence in England cannot be transferred. Under Section 68(6) of the Housing Act 2004, the licence is a personal authorisation granted to a specific individual or corporate entity. When a property is sold or the licence holder dies, the licence ends and the new person in control must apply for a fresh one.

What Triggers a New Application

Property Sale

When a licensed HMO is sold, the existing licence terminates on completion. The buyer must submit their own licence application, pay the full fee (Part A and Part B), pass the fit and proper person test, and satisfy all the same documentary requirements as a first-time applicant.

The buyer should apply before or immediately upon completion. Operating the property between completion and obtaining a licence (or having the application "duly made") puts the new owner at risk of prosecution for running an unlicensed HMO.

Death of the Licence Holder

If the licence holder dies, the licence ends on the date of death. For the following three months, the property is treated as if a Temporary Exemption Notice had been served. During that period, the personal representatives may ask the council for a further notice lasting up to three months.

Change of Property Manager

If the named property manager on the licence changes — for example, you switch from self-managing to using a letting agent, or from one agent to another — submit a formal variation application to the council and check its requirements.

The new manager must meet the fit and proper person standard. If the council determines the proposed new manager does not meet it, the licence cannot be varied and a new application with a different manager is needed.

Corporate Changes

If the licence is held by a limited company, the fit-and-proper assessment applies to its officers, directors, and shadow directors. If those details change, ask the council whether it requires a variation or a fresh application.

The Temporary Exemption Option

If you are selling a licensed HMO and the buyer does not intend to continue operating it as an HMO — perhaps they plan to convert it back to a single-family home or reduce occupancy below the licensing threshold — the buyer can apply for a Temporary Exemption Notice (TEN) under Section 62. A TEN provides three months (extendable once to six months in exceptional cases) during which the property is exempt from the licensing requirement while the new owner makes changes.

A TEN is not appropriate if the buyer intends to keep operating the property as an HMO. In that case, they need a licence application, not a temporary exemption.

Practical Advice for Buyers

If you are buying an HMO that is currently licensed:

1. Get the current licence details from the seller — the licence conditions, remaining term, any outstanding improvement notices or enforcement history
2. Prepare your application documents before completion — gas safety certificate, EICR, EPC, fire risk assessment, floor plans (these may need refreshing if the seller's copies are close to expiry)
3. Submit your application on or immediately after completion — the goal is to have the application "duly made" as soon as possible, which protects you from prosecution while the council processes it
4. Budget for the full fee — you cannot take over the seller's fee or get a pro-rata rate for the remaining licence period

Practical Advice for Sellers

If you are selling a property with an active HMO licence:

• Disclose the licence status, conditions, and any enforcement history to the buyer as part of the standard property information form
• Provide copies of all safety certificates and floor plans — the buyer will need them for their own application
• Be aware that the licence terminates on completion; you have no ongoing obligations under it after that point

The Cost Reality

Non-transferability means the buyer pays the full licence fee regardless of how much time remains on the seller's licence. If the seller's licence was granted last year and still has four years to run, the buyer still pays the full fee (often £975–£1,607) for a new five-year licence. There is no refund to the seller for the unused portion.

This is a material cost in HMO transactions and should be factored into the purchase price negotiation.

Our HMO Licensing Guide for England covers licence holder responsibilities, the application process for new owners, and the fee structures across major councils.

See more England guides →