Mandatory HMO Licence Manchester: Who Needs One and How It Differs from Selective

Manchester has mandatory HMO licensing citywide and selective licensing in designated wards — but no additional HMO licensing scheme. That three-part structure matters because it creates a gap where some shared houses need no property licence at all, while others trigger a mandatory licence that many landlords do not expect.

The Mandatory HMO Threshold

Under the Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018, a property needs a mandatory HMO licence if it is occupied by five or more people forming two or more separate households who share a kitchen, bathroom, or toilet.

This applies everywhere in Manchester — not just designated selective licensing areas. The number of storeys does not matter. A ground-floor flat with five unrelated sharers needs a mandatory licence just as much as a three-storey Victorian terrace.

Counting Households

A household under Section 258 of the Housing Act 2004 includes people who are related and living together: couples, parents and children, siblings, grandparents, aunts, uncles, and step-children. Foster children and live-in domestic staff also count within a single household.

Unrelated people each form their own household. Three professional friends sharing a house create three households. A couple plus one friend creates two households (three occupants). Add two more friends and you have five occupants from four households — firmly above the mandatory threshold.

No Additional HMO Scheme in Manchester

This is the gap that confuses landlords. Manchester City Council does not operate an additional HMO licensing scheme. A small HMO with three or four unrelated sharers that falls below the mandatory five-person threshold does not need a property licence — unless it sits inside a selective licensing area.

A four-person shared house in Didsbury or Withington (both outside the current selective designations) needs no licence at all. The same property in Birmingham would need an additional HMO licence because Birmingham runs a citywide additional scheme.

Inside a selective licensing area, the small HMO needs a selective licence — not because it is an HMO specifically, but because it is a privately rented property in a designated zone. The selective licence covers the property regardless of occupancy configuration.

Priority: HMO Licence Over Selective

If a property qualifies for both mandatory HMO licensing and selective licensing (because it has five or more people from two or more households and it sits in a designated area), the HMO licence takes priority. Section 85(1)(a) of the Housing Act 2004 exempts properties already licensed under Part 2 from needing a Part 3 selective licence. You only pay for one licence.

What This Means Practically

Work through the decision in order:

1. Five or more people from two or more households sharing facilities? → Mandatory HMO licence (citywide)
2. Fewer occupants, but property is in a designated selective area? → Selective licence
3. Fewer occupants, property outside designated areas? → No licence required

The occupancy count is based on the actual people living in the property, not the number of names on the tenancy agreement. If tenants move partners or friends in and the total reaches five people from two households, the licensing obligation changes immediately — there is no grace period.

Our Manchester Landlord Licensing Guide includes the complete decision tree with household counting examples and address-checking steps.

See more England guides →