Sunderland Non-Licensable HMOs: Rules for 3 and 4 Person Shared Houses

Not every shared house in Sunderland needs a licence. The licensing threshold is five occupants, but the legal definition of an HMO starts at three. That gap between "legally an HMO" and "needs a licence" creates real confusion for landlords — especially when some neighbouring councils in the North East do licence smaller properties.

When Is a Property an HMO in Sunderland?

Under the standard test in Section 254 of the Housing Act 2004, a property is an HMO if three or more people from two or more separate households use it as their only or main residence and share or lack at least one basic amenity (bathroom, toilet or kitchen). A couple counts as one household; unrelated individuals each form their own.

So a house with three unrelated tenants sharing a kitchen is an HMO. A flat with two couples (four people, two households) sharing a bathroom is an HMO. A family of five in a single household is not.

The Licensing Threshold: Five People, Two Households

Sunderland City Council operates mandatory HMO licensing only. The mandatory threshold requires five or more occupants from two or more separate households who share or lack a basic amenity and use the property as their only or main residence. Properties below this threshold — the 3 and 4 person shared houses — don't need a licence in Sunderland.

This is because Sunderland has no additional HMO licensing scheme in force. In councils that run additional licensing (like Newcastle or Gateshead during active designation periods), smaller HMOs also need licences. In Sunderland, they don't.

What Rules Still Apply to Non-Licensable HMOs?

The absence of a licence doesn't mean the absence of regulation. Every HMO in Sunderland — licensed or not — must comply with the Management of Houses in Multiple Occupation (England) Regulations 2006. These require the property manager to:

• Keep all fire escapes clear and maintain fire alarm and firefighting equipment in working order
• Maintain water supply, drainage, gas and electrical installations in safe working condition
• Keep common parts, staircases, boundary walls and gardens in clean, safe condition
• Display the manager's name, address and telephone number prominently in the common parts

The council's housing enforcement team can inspect any HMO — not just licensed ones — under the Housing Health and Safety Rating System (HHSRS), assessing the property against 29 statutory hazard categories. If they find serious hazards, they can issue improvement notices or prohibition orders regardless of licensing status.

Non-licensable HMOs also need:

• An annual gas safety certificate
• A satisfactory EICR (within 5 years)
• An EPC at minimum grade E
• Smoke alarms on every storey
• Carbon monoxide alarms in rooms used as living accommodation with a fixed combustion appliance (excluding gas cookers)

Planning Permissions Still Apply

In the Article 4 wards (Barnes, Hendon, Millfield, St Michael's and St Peter's), even a three-person shared house needs C4 planning permission if it was previously a family dwelling. The planning obligation is entirely separate from licensing — a property can be below the licensing threshold but still require planning consent to operate as an HMO.

When Does a Non-Licensable HMO Tip Over?

If an additional tenant moves in and the household count pushes the total to five or more people from two or more households, the property crosses the mandatory threshold. At that point, you need to apply for a licence before the additional person takes up residence. Operating above the threshold without a licence is a criminal offence carrying penalties of up to £40,000.

The Sunderland Landlord Licensing guide includes a threshold assessment worksheet that maps occupant counts against household structures, so you can confirm exactly where your property sits and what triggers the licensing requirement.

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