Its important to check planning and licensing in the area.

Planning Permission ( This is different to HMO licensing- The two departments don’t talk to each other)

If you wish to operate a house as an HMO, it must have the correct class of planning use. You may need to apply for planning permission to change it from C3 (dwelling house) to C4 (house in multiple occupation).

HMO Mandatory Licence

HMOs require a mandatory licence if they are occupied by at least five people, in a building that has at least three storeys, and where at least one person’s accommodation is not self- contained. Where the whole building has a mix of self-contained and non-self-contained flats, the whole building will be licensable.

Additional Licences

You need an additional HMO licence if you own and rent out a property in certain cities where they require additional licences for HMOS and all of the following are true: it is a house in multiple occupation (HMO) 3 or 4 people live there (but not 5 or more), forming more than one household.

Selective Licensing

Selective licensing gives the local council powers to regulate landlords and managing agents of private rented property in areas that suffer from low housing demand and/or high levels of anti-social behaviour and/or deprivation.