Tower Hamlets HMO Definition: Shared Houses, Bedsits, and the Three-Person Threshold
When a Property Becomes an HMO in Tower Hamlets
A house in multiple occupation is defined under Section 254 of the Housing Act 2004 as a property occupied by three or more persons forming two or more separate households who share one or more basic amenities — a kitchen, a bathroom, or a toilet. In Tower Hamlets, those properties need an Additional or Mandatory HMO licence, depending on occupancy and property type. The borough-wide Additional HMO scheme runs from 1 April 2024 until 31 March 2029.
The key numbers: three persons and two households. A married couple and their lodger is three people but potentially only two households (the couple counts as one, the lodger as another) — that is enough to trigger additional HMO licensing. Two friends sharing a flat is two persons and two households, but falls below the three-person threshold — no HMO licence is required.
The Household Test
A "household" is defined under Section 258 of the Housing Act 2004 as members of the same family. This includes:
- Married or cohabiting couples (including same-sex partners)
- Parents and their children
- Grandparents, grandchildren, siblings, uncles, aunts, nephews, nieces
- Step-relations
Two friends sharing are two separate households. A couple is one household. Three siblings are one household. The household count, combined with the total headcount, determines which licence you need:
| Occupants | Households | Licence required |
|---|---|---|
| 2 unrelated sharers | 2 | None (below 3-person threshold) |
| Couple + 1 friend | 3 persons, 2 households | Additional HMO |
| 3 unrelated friends | 3 persons, 3 households | Additional HMO |
| 4 unrelated sharers | 4 persons, 4 households | Additional HMO |
| 5+ unrelated sharers | 5+ persons, 5+ households | Mandatory HMO in most cases; some flat types fall under Additional licensing |
Shared Houses vs Bedsits
Tower Hamlets' licensing applies to both shared house HMOs and bedsit HMOs, but the property type affects the licence conditions.
Shared houses — tenants have their own bedrooms but share a kitchen, living room, and bathroom. This is the most common HMO type in Tower Hamlets. Three friends renting a three-bedroom flat, each with their own room, sharing the kitchen and bathroom — that is a shared house HMO requiring an additional licence.
Bedsits — tenants occupy individual rooms with exclusive use of some facilities (a sink or cooker in the room) but share a bathroom or kitchen. Bedsit properties often have higher occupancy and may cross the five-person threshold into mandatory HMO territory.
Both types require the same application process and are subject to the same room size standards and amenity requirements. The council does not issue a separate "bedsit licence" — it is all covered under the HMO licensing framework.
Individual flats in some converted buildings, including Section 257 HMOs, can require an Additional HMO licence even when occupied by three or more sharers.
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What the Additional Scheme Catches That Mandatory Doesn't
The national mandatory HMO scheme applies to properties with five or more occupants from two or more households. It has been in force since 2006 (expanded in 2018 to remove the old three-storey requirement).
Tower Hamlets' additional HMO scheme fills the gap below that threshold. It catches properties with three or four occupants from two or more households — the shared flats and small shared houses that sit below the mandatory line. Without the additional scheme, a four-person shared flat in Tower Hamlets would need no licence at all under national rules.
The additional scheme is a local designation, approved by the council's Mayor in Cabinet on 25 October 2023 and running until 31 March 2029. If it is not renewed after that date, properties with three or four occupants would revert to unlicensed status — but as of October 2026, the scheme is firmly in force.
What About Two-Person Shares
Two people from two separate households sharing a property does not meet the HMO definition — there are only two persons, not three. No licence is required in Tower Hamlets for a two-person share, regardless of which ward the property is in.
This was different when the selective licensing scheme was active (1 October 2021 to 30 September 2026), which covered all private rented properties in the designated wards of Weavers, Whitechapel, Spitalfields and Banglatown — including single-household lets and two-person shares. That scheme has expired. Two-person shares in those wards are now unlicensed.
If a two-person share later gains a third occupant — a new flatmate, a partner who moves in permanently — the property immediately becomes an HMO requiring an additional licence. There is no grace period.
For the full occupancy diagnostic, fee calculations, and a printable decision matrix to determine which licence your Tower Hamlets property needs, see our Tower Hamlets Landlord Licensing Guide.
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