Buying an HMO?

HMO licences are not transferable, therefore if a property with a HMO Licence has been sold, a licence holder has changed or if it is no longer an HMO, the licence must be revoked.

If an HMO application is still in progress but the property has been sold, then you should email and inform us so that we can withdraw the HMO application.

When a licensed HMO has been sold, the licence holder should apply to revoke their licence. Otherwise, you will still be legally responsible for complying with the licence conditions and carrying out any works required by Improvement Notices. This could lead to confusion and possible legal action against you.

If a new licence application is not received from the new owners or landlord after the old licence has been revoked and it is still operating as an HMO then you could be at risk of serious consequences as detailed below:

  • Prosecution and an unlimited fine
  • Financial penalty notices of up to £30,000
  • Rent repayment orders where you must repay the tenants their rent
  • Interim management orders where the council takes over the HMO
  • Being deemed not fit and proper and refused a licence.