Peterborough HMO Definition: When Is a Shared House an HMO?

The Legal Definition of an HMO

Under Sections 254 to 259 of the Housing Act 2004, a House in Multiple Occupation is a property occupied by three or more people who form two or more separate households and share at least one basic amenity — a kitchen, bathroom, or toilet.

The word "household" is the key. A single person living alone is one household. A couple is one household. A family related by blood, marriage, adoption, or formal care relationships counts as one household. Unrelated individuals are separate households, even if they moved in together and share the rent equally.

So three friends renting a house together are three separate households sharing facilities — that is an HMO. A couple and their adult child living together are one household — that is not an HMO, even though there are three people.

The Three-Storey Rule Is Gone

Before October 2018, mandatory HMO licensing only applied to properties with three or more storeys and five or more occupants. The Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 removed the storey requirement entirely.

This catches landlords who bought or converted properties under the old rules. A two-storey terraced house with five unrelated tenants is now a mandatory HMO — the number of storeys does not matter.

How Peterborough's Three Schemes Map to Occupancy

Peterborough operates three concurrent licensing schemes. Which one applies depends entirely on the number and household composition of the occupants:

One person, one family, or two unrelated sharers (two households): If the property is in a designated area within one of the ten selective licensing wards (Bretton, Central, East, Fletton and Stanground, Fletton and Woodston, North, Orton Waterville, Park, Paston and Walton, Stanground South), you need a Selective Licence. Check the exact address against the council's lookup. Total fee: £908. If the property is outside the designated selective licensing areas, no selective licence is needed.

Three or four occupants from two or more households sharing facilities: Additional HMO Licence required. This is city-wide — every address in Peterborough, regardless of ward. Total fee: £1,100. This scheme came into force on 26 January 2026.

Five or more occupants from two or more households sharing facilities: Mandatory HMO Licence required. Also city-wide. Total fee: £1,100. This is the national scheme under Part 2 of the Housing Act 2004.

The schemes do not overlap on a single property. Mandatory licensing displaces additional and selective. Additional HMO licensing displaces selective. Your property only ever needs one licence at a time.

Common Scenarios

Three professionals sharing a house. Three separate households sharing a kitchen — this is a small HMO needing an Additional HMO Licence (city-wide, £1,100).

A couple plus one friend. The couple is one household, the friend is a second household — three people, two households sharing facilities. Additional HMO Licence.

A family of four. One household, regardless of how many people. Not an HMO. If the property is in a designated selective licensing area, it needs a Selective Licence.

Five students sharing a house. Five separate households (assuming none are related) sharing facilities — Mandatory HMO Licence.

A couple with two children, plus an unrelated lodger. The family is one household, the lodger is a second. Five people, two households — that meets the Mandatory HMO threshold.

What Happens When Occupancy Changes?

If an occupant leaves a five-person mandatory HMO, dropping the count to four, the property keeps its mandatory licence classification unless the council formally varies or revokes it. You do not automatically drop down to the additional scheme.

Going the other way, if you have a three-person additional HMO and add two more tenants, you must immediately apply for a mandatory licence before the fifth person moves in. The additional licence does not cover five-person occupancy.

Our Peterborough Landlord Licensing Guide includes a decision flowchart that walks through the occupancy thresholds for every combination — so you can determine exactly which licence your property needs and start the application through the Home Safe portal with the right form.

Frequently Asked Questions

Is a property with three bedrooms automatically an HMO?

No. The HMO definition depends on the number of occupants and their household relationships, not the number of bedrooms. A three-bedroom house occupied by a single family is not an HMO.

Does the number of storeys matter for HMO licensing in Peterborough?

Not since October 2018. The storey requirement was removed nationally. A two-storey house with five unrelated occupants is a mandatory HMO.

My property has three tenants but they are all on one joint tenancy — is it still an HMO?

Yes. The HMO definition looks at the household composition and facility sharing, not the tenancy structure. Three unrelated people on a joint tenancy are still three separate households.

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