Sheffield HMO Licence Exemptions: Which Properties Are Exempt and How to Get a TEN

Who Is Exempt From a Mandatory HMO Licence in Sheffield?

Not every shared property in Sheffield needs a licence. Schedule 14 of the Housing Act 2004 carves out several categories that are excluded from the HMO definition entirely, regardless of how many people live there. If your property falls into one of these categories, the mandatory licensing rules do not apply.

Properties managed or controlled by a public body — local authorities, registered social landlords, health authorities and police authorities are all exempt. If Sheffield City Council itself manages the tenancy, the property sits outside the licensing regime.

University-managed accommodation operating under an approved national code of practice is exempt. This covers purpose-built halls of residence and university-owned houses managed directly by the institution. It does not cover privately owned student lets that happen to house university students — those are subject to the normal five-person, two-household test.

Resident landlord with up to two lodgers — if you live in the property as your main home and take in no more than two lodgers, the property does not meet the HMO definition. A third lodger makes four occupants if you live alone; mandatory licensing applies only at five or more occupants from two or more households who share amenities.

Purpose-built flat blocks — individual flats within a block of three or more self-contained flats are generally exempt, unless a single flat within the block is itself shared by five or more people from two or more households. The block as a whole is not treated as one HMO.

Section 257 converted flats — buildings converted into self-contained flats where fewer than two thirds of the flats are owner-occupied and the conversion does not meet 1991 Building Regulations are classed as Section 257 HMOs. They are exempt from mandatory Part 2 licensing and can only be brought into licensing through a specific additional licensing designation — and Sheffield has no additional scheme in force.

Temporary Exemption Notices

If your property does meet the mandatory HMO threshold but you are actively working to change that, you can apply to Sheffield City Council for a Temporary Exemption Notice (TEN) under Section 62 of the Housing Act 2004. A TEN is not a loophole — it is a short-term bridge for landlords who are genuinely taking steps to end the licensable configuration.

Valid grounds include:

• Serving lawful possession notices to reduce occupancy below five persons
• Entering a binding contract for sale with vacant possession
• Converting the property back to single-household use

A granted TEN exempts the property from licensing for three months. In exceptional circumstances the council may grant one further three-month extension. After six months total, no more extensions are possible — if the property still meets the HMO test, you must submit a full licence application immediately.

Sheffield does not grant TENs as a matter of routine. The council expects concrete evidence that the situation will resolve within the exemption period. A four-month notice to quit extends beyond the initial three-month TEN; a further three-month TEN is possible only in exceptional circumstances, so do not assume it will cover the remaining period.

The Borderline Cases That Catch Landlords Out

The exemptions sound straightforward, but the edges are where problems start.

Couples and household counting — two friends sharing a bedroom are two households, not one. A married or cohabiting couple counts as a single household. Getting the household count wrong by one can move you from exempt to licensable overnight, particularly in four-person houses where a fifth occupant (a partner moving in) tips the balance.

Resident landlord threshold — you must live in the property as your only or main home. A landlord who "stays over" two nights a week while maintaining a separate main residence does not qualify for the resident landlord exemption.

Properties on former selective licensing streets — the selective licensing schemes covering London Road, Abbeydale Road, Chesterfield Road and Page Hall expired on 31 October 2023 and April 2019 respectively. Properties on those streets no longer need a selective licence. They still need a mandatory HMO licence if the occupancy test is met.

For a full walkthrough of who needs a licence and the application process, the Sheffield Landlord Licensing Guide covers every scheme, fee band and document requirement in one place.

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