The Renters Rights Act 2025 applies to HMO landlords in the same way it applies to all private landlords in England, but with several critical differences around possession, licensing, and EPC requirements. Every individual tenancy agreement within an HMO is subject to the new Assured Periodic Tenancy (APT) regime from 1 May 2026. Fixed-term tenancies can no longer be created. Student HMO landlords get access to a new Ground 4A for academic-year possession, but it comes with strict notice requirements.
This guide covers what HMO landlords specifically need to do differently under the Renters Rights Act, where the rules overlap with existing HMO licensing, and how EPC requirements for multi-occupancy properties are changing.
How Does the Renters Rights Act Apply to HMOs?
The Renters Rights Act applies to every private tenancy in England, and HMOs are no exception. Each individual tenancy within the property falls under the new rules. That means:
- No more fixed-term tenancies. All HMO tenancies are now periodic, rolling month to month (or week to week). You cannot issue a new fixed-term AST after 1 May 2026.
- No more Section 21. All evictions go through Section 8 grounds. You must prove a valid reason for possession.
- Rent increases limited to once per year. Tenants can challenge increases they consider above market rate through a tribunal.
- Rent in advance capped at one month. You cannot ask for more than one month's rent upfront per tenant.
- Information Sheet required. Every tenant in the HMO must receive the MHCLG Information Sheet by 31 May 2026. Not one copy for the house: one per tenant.
Per the MHCLG Information Sheet (2026), the requirement applies per tenancy agreement, not per property. In a six-bedroom HMO with six separate tenancy agreements, you must serve six Information Sheets.
Failure to serve the Information Sheet carries a civil penalty of up to £7,000 per tenant. For a six-bed HMO, that is a potential exposure of £42,000.
What Is Ground 4A and How Does It Affect Student HMOs?
Ground 4A is the new possession ground created specifically for student HMO landlords. It replaces the role that fixed-term tenancies and Section 21 notices previously played in the student rental cycle.
What it does: Ground 4A allows landlords to regain possession of a property let to full-time students at the end of the academic year, so the property can be re-let to new students.
Requirements:
- The property must be an HMO with three or more bedrooms
- All tenants must be full-time students
- You must have given written notice at the start of the tenancy that Ground 4A applies
- You must serve a possession notice giving the tenant at least two months' notice (four months in normal circumstances, but a transitional provision applies until 31 July 2026)
Critical deadline: If you have existing student tenants who moved in before 1 May 2026, you must provide written notification that Ground 4A applies by 31 May 2026. Miss this deadline and you cannot use Ground 4A for those tenancies.
What it does not cover: Ground 4A does not apply to properties with fewer than three bedrooms. It does not apply to mixed-occupancy HMOs where some tenants are students and some are not. And it does not apply to purpose-built student accommodation (PBSA), which falls under a separate exemption linked to the UNIPOL and ANUK codes.
According to EPCGuide's analysis, Ground 4A is narrower than many student HMO landlords expected. If you run a two-bed student let, you have no equivalent possession ground and will need to manage periodic tenancies year-round or negotiate tenant departures.
How Do HMO Licensing Rules Interact With the Renters Rights Act?
HMO licensing and the Renters Rights Act are separate regulatory frameworks, but non-compliance with either one creates problems for the other.
Mandatory licensing: HMOs with five or more occupants forming two or more households still require a mandatory licence from the local authority. This is unchanged by the Renters Rights Act.
Additional licensing: Many local authorities operate additional licensing schemes covering smaller HMOs (three or four occupants). These remain in place and are unaffected by the new tenancy rules.
Rent repayment orders: If your HMO requires a licence and you do not have one, tenants can apply for a rent repayment order (RRO) of up to 24 months' rent. The Renters Rights Act doubled the maximum RRO period from 12 to 24 months. For an HMO with multiple tenants, the total exposure can be enormous.
Possession implications: Operating an unlicensed HMO that requires a licence does not automatically block possession proceedings, but it gives the local authority grounds for prosecution and civil penalties of up to £30,000 per offence. A court considering a possession claim may also take licensing non-compliance into account when deciding whether to grant an order.
Practical interaction: You now need to be compliant on three fronts simultaneously:
- HMO licensing (local authority)
- Tenancy management under the Renters Rights Act (deposit protection, Information Sheet, valid grounds for possession)
- EPC and MEES compliance
Letting any one of these lapse can trigger enforcement on the others. According to the NRLA (2026), local authorities are increasingly using cross-referencing to identify landlords who are non-compliant on multiple obligations at once.
Do HMOs Need One EPC or Multiple EPCs?
This is one of the most misunderstood areas of HMO compliance, and it is changing.
Current position (as of May 2026): The rules depend on the type of HMO and how it is let:
- Shared house HMO (single tenancy agreement): One EPC for the whole property.
- HMO with individual room agreements: Technically, each let unit should have its own EPC. In practice, enforcement has been inconsistent, and many landlords provide a single whole-building EPC.
- Section 254 HMO (bedsits with exclusive use): Each self-contained unit requires its own EPC.
Incoming change: The government's reforms to the Energy Performance of Buildings regime (partial response published 2025, implementation expected late 2027) will clarify this by requiring a valid EPC for the whole HMO when a single room is let. Per the consultation response, there was consensus that the EPC should cover the whole building rather than individual rooms.
Transitional period: A 24-month transitional period will apply for HMO landlords newly brought into scope. This means you will have time to obtain a valid whole-building EPC once the rules are formally enacted.
MEES implications: Under the proposed 2030 Minimum Energy Efficiency Standards, the EPC rating used for compliance will be the whole-building EPC. If your HMO is rated D or below at the building level, you will need to invest in EPC upgrades regardless of how individual rooms perform.
For HMO landlords planning upgrade budgets, EPCGuide's cost calculator can estimate the investment needed based on your property type and current rating. The grant checker identifies available funding, including the Boiler Upgrade Scheme and ECO4.
What Are the Deposit Rules for HMO Tenants?
The deposit rules under the Renters Rights Act apply per tenancy agreement, not per property. In a shared HMO with individual tenancy agreements:
- Each tenant's deposit is capped at five weeks of their individual rent (or six weeks if their annual rent exceeds £50,000)
- Each deposit must be protected in a government-authorised scheme within 30 calendar days
- Prescribed information must be served to each tenant individually within 30 days
- Rent in advance is capped at one month per tenant
For a six-bed HMO at £600 per room per month, the maximum deposit per tenant is approximately £692 (five weeks of £600/month). The maximum upfront payment per tenant is approximately £1,292 (deposit plus one month's rent).
Failure to protect any single tenant's deposit blocks possession proceedings against all tenants in the property (except for serious criminal behaviour). This is a significant risk multiplier for HMO landlords managing multiple deposits simultaneously.
How Do Rent Increases Work in HMOs Under the New Rules?
Rent can only be increased once per year per tenancy, using a Section 13 notice. The tenant can refer the increase to the First-tier Tribunal if they believe it exceeds market rate.
For HMO landlords, this creates a practical challenge: you may need to stagger rent increases across tenants, each with different anniversary dates, and each with the right to challenge independently.
Key points:
- The increase must reflect the open market rent for the property or room
- You must give at least two months' notice using the prescribed Section 13 form
- If the tenant refers it to the tribunal, the tribunal determines the market rate (and can set a figure lower than what you proposed)
- The tribunal's determination takes effect from the date the increase was originally intended to apply
According to EPCGuide's analysis, HMO landlords with rooms let at below-market rates following the pandemic may face a temptation to issue large single increases. Tribunals have wide discretion to reduce proposed increases, and a pattern of aggressive pricing could trigger scrutiny.
What Notice Must HMO Tenants Give to Leave?
Under the Renters Rights Act, tenants can end their tenancy by giving two months' written notice. There is no requirement for the tenant to provide a reason.
In an HMO context, this means individual tenants can leave at different times. You may have a six-bed house with tenants departing on different dates throughout the year. This is a fundamental shift from the old fixed-term model, where all tenants in a student HMO would leave on the same date.
Ground 4A (for student HMOs) partially addresses this, but only for properties with three or more bedrooms where all tenants are full-time students. For non-student HMOs and smaller student properties, managing rolling departures is now a permanent operational reality.
Tips for managing this:
- Budget for periodic voids in individual rooms rather than assuming full occupancy
- Market rooms individually and maintain a waiting list
- Keep the property in good condition year-round (not just between academic years)
- Ensure your EPC rating and compliance documentation are always current, as any new tenant trigger may require updated documentation
What Should HMO Landlords Do Right Now?
If you operate an HMO in England, here is your compliance checklist for May 2026:
- Serve the Information Sheet to every tenant. Deadline: 31 May 2026. One per tenant, not one per property. Keep proof of service.
- Confirm all deposits are protected. Check each tenant's deposit individually in your TDP scheme. Existing protection carries forward, but verify the records are correct.
- Issue Ground 4A notices (student HMOs only). If you intend to use Ground 4A, serve written notice to all student tenants by 31 May 2026.
- Verify your HMO licence. Confirm it is current and covers the correct number of occupants. Licensing fees vary by local authority but typically range from £500 to £1,500 for a five-year licence.
- Check your EPC. Ensure you have a valid EPC for the property. If it expires before 2030, plan for re-assessment under the new methodology (expected late 2027). Use the cost calculator to budget for any upgrades needed to reach EPC C.
- Review your tenancy agreements. Remove any fixed-term clauses, any requirement for more than one month's rent in advance, and any other provisions that conflict with the new rules.
- Set up proper record-keeping. Under the new enforcement regime, local authorities can request evidence of compliance at any time. Keep dated copies of Information Sheets, deposit protection certificates, prescribed information, and HMO licence documentation for each tenant.
Frequently Asked Questions
Does the Renters Rights Act apply to all HMOs?
Yes. Every private tenancy in England falls under the Renters Rights Act from 1 May 2026, including all types of HMOs: mandatory licensed, additionally licensed, and unlicensed smaller shared houses. Each individual tenancy agreement within the HMO is subject to the new rules.
Can I still use fixed-term tenancies in my HMO?
No. Fixed-term assured shorthold tenancies cannot be created after 1 May 2026. All tenancies are now assured periodic tenancies, rolling from month to month. Existing fixed-term tenancies converted to periodic tenancies on 1 May 2026.
What if only some of my HMO tenants are students?
Ground 4A only applies where all tenants are full-time students. If you have a mixed-occupancy HMO with both student and non-student tenants, you cannot use Ground 4A. You will need to rely on other Section 8 grounds if you need to obtain possession.
How much can I fine for not having an HMO licence?
You cannot be "fined" for not having a licence in the traditional sense, but you face civil penalties of up to £30,000, potential prosecution with an unlimited fine, and rent repayment orders of up to 24 months' rent per tenant. For a six-bed HMO at £600 per room, the rent repayment exposure alone could reach £86,400.
Do I need separate EPCs for each room in my HMO?
It depends on the letting arrangement. For shared house HMOs under a single tenancy, one whole-building EPC is sufficient. For HMOs let on individual room agreements, the government is moving toward requiring a whole-building EPC (rather than individual room EPCs). A 24-month transition period will apply once the new rules are enacted.
What happens if a tenant leaves mid-year in my HMO?
Under the Renters Rights Act, any tenant can leave with two months' notice at any time. You cannot prevent this or charge an early termination fee. You will need to find a replacement tenant for the vacant room. This is a significant change for HMO landlords accustomed to fixed-term tenancies guaranteeing occupancy for a set period.
How does EPC compliance interact with HMO licensing?
They are separate requirements enforced by different bodies, but both must be met. You need a valid EPC to let any property and a valid HMO licence (if applicable) to operate as an HMO. Local authorities increasingly cross-reference compliance databases, so failing on one obligation can trigger investigation of the other. Plan for both by checking your EPC compliance costs and your licensing renewal timeline simultaneously.