Short answer: the new rules for HMOs in England started on 1 May 2026. HMO tenancies follow the same core Renters' Rights Act rules as other private lets, plus a possession ground for student HMOs. Tenancies now run on a rolling basis with no end date, and Section 21 "no fault" evictions have ended, so you need a ground for possession. Rent can rise only once a year, and never in the first 12 months of a new tenancy. A tenant can challenge an increase above market rent. Once the agreement is signed you can ask for at most one month's rent in advance, and a tenant can end the tenancy with two months' notice. Lodgers are covered by different rules (GOV.UK, Renters' Rights Act overview for tenants).
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 assured or assured shorthold tenancy within an HMO moves to the new Assured Periodic Tenancy (APT) regime from 1 May 2026. Lodgers and social tenancies are generally outside it. 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 assured tenancies 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 with an existing written tenancy in the HMO had to receive the MHCLG Information Sheet by 31 May 2026. The duty runs per tenancy, so it is not one copy for the house. If you missed it, serve it now.
Under the Renters' Rights Act (Schedule 6, paragraph 7), the requirement applies per existing tenancy, not per property. In a six-bedroom HMO with six separate written tenancy agreements, that means six Information Sheets.
Failure to give existing tenants the Information Sheet can lead to a financial penalty of up to £7,000 from the local council (Renters' Rights Act 2025, Schedule 6, paragraph 7, and Housing Act 1988, section 16I(6)).
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 an HMO let to full-time students, where the earliest court date in the notice falls between 1 June and 30 September, so the property can be let to a new group of students.
Requirements:
- The property must be an HMO (GOV.UK describes this as at least three tenants forming more than one household, sharing a toilet, bathroom or kitchen)
- Every person on the tenancy must be a full-time student, or you must reasonably believe they will become one during the tenancy
- You must have given the tenant a written statement before the tenancy was entered into that you may use Ground 4A, and the tenancy must have been agreed no more than six months before the tenant was entitled to possession. For tenancies that already existed on 1 May 2026, the written statement had to be given within a month of that date and the six-month condition does not apply (Renters' Rights Act 2025, Schedule 6, paragraph 13)
- You must serve a possession notice giving the tenant the required notice period, which is four months (for tenancies that already existed on 1 May 2026, notices served from 1 May to 30 July 2026 needed only two months)
Expired deadline: landlords with student tenants who moved in before 1 May 2026 had to give written notification that Ground 4A applies by 31 May 2026. If that notice was not served, Ground 4A is not available for those tenancies, and you will need to rely on other Section 8 grounds or agree a departure with the tenants.
What it does not cover: Ground 4A only applies to an HMO, which needs at least three tenants forming more than one household. It applies tenancy by tenancy, so a student with their own tenancy in a mixed HMO can be covered, but joint tenants must all meet the student test. GOV.UK says the ground does not apply to all student properties, such as purpose-built student accommodation. For some existing tenancies where the landlord or manager belongs to a housing management code of practice specified in regulations, the Act provides a modified version of the ground.
Ground 4A is narrower than many student HMO landlords expected. If you run a student let that is not an HMO, for example one with only two tenants, 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. 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 (Housing and Planning Act 2016, sections 44 and 45, as amended by sections 98 and 103 of the Act). 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 £40,000 per offence (£30,000 for conduct before 1 May 2026; Housing Act 2004, section 249A, as amended by SI 2026/319).
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
Each is a separate duty, so a lapse on one front is a problem in its own right.
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 let by the room on individual agreements: the rooms do not need their own EPC, and the partial response to the Energy Performance of Buildings consultation notes that current guidance does not require an EPC for the whole HMO when one room is rented out. The government intends to require a whole-building EPC whenever a room is let (not yet law).
- HMO made up of self-contained units: each unit needs its own EPC. Non-self-contained bedsits do not, unless the whole building needs one.
Proposed change: in its response to the Energy Performance of Buildings consultation, the government says it intends to require a valid EPC for the whole HMO when a single room is let. Reformed domestic EPCs are due to launch in the second half of 2027, but no date has been set for the HMO change. The consultation response reported consensus that the EPC should cover the whole building rather than individual rooms. This needs new regulations, which have not been made, so it does not bind you yet.
Transitional period: a 24-month transitional period was consulted on for HMO landlords newly brought into scope, to obtain an EPC and comply with MEES. The government has said it will confirm transitional arrangements in its final response.
MEES implications: the minimum standard in force is band E, and bands D and E are legal to let. If the proposed 2030 band C standard goes ahead, the government intends a whole-building EPC to be required for an HMO when a room is let, so an HMO rated D or below at building level would be likely to need EPC upgrades. The government has not yet confirmed how the MEES transition will apply to HMOs.
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 is £50,000 or more), under Schedule 1, paragraph 2 of the Tenant Fees Act 2019
- 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
As an illustration, 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 a tenant's deposit stops the court making a possession order on that tenant's tenancy until you put it right or return the deposit, except under Grounds 7A and 14 (the antisocial and criminal behaviour grounds). Each separate tenancy stands on its own. 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 in your notice if that is on or after the determination, otherwise from the start of the first new rent period after it. It is not backdated, and the tribunal can direct a later date, within two months of its determination, where the tenant would suffer undue hardship
HMO landlords with rooms let at below-market rates may be tempted to issue one large increase. 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 on separate tenancies 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 HMOs let to full-time students, and only where the earliest court date falls between 1 June and 30 September. For non-student HMOs and student lets that are not HMOs, 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:
- Check the Information Sheet was served to every tenant. The deadline was 31 May 2026, one per tenant, not one per property. If you missed it, serve it now and 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.
- Give Ground 4A notice at the start of every new student tenancy. For tenancies that were already running on 1 May 2026, written notice had to be given by 31 May 2026, and that window has closed.
- Verify your HMO licence. Confirm it is current and covers the correct number of occupants. Licensing fees are set by each local authority, and a licence is valid for a maximum of 5 years (GOV.UK).
- Check your EPC. Ensure you have a valid EPC for the property and that it is band E or above. If it expires this decade, note that the government has proposed a new assessment methodology, with the launch of new-style EPCs moved to the second half of 2027, so it is not yet in place. 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 assured or assured shorthold tenancy in England falls under the Renters Rights Act from 1 May 2026, including those in HMOs of every licensing type: 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 is tested tenancy by tenancy. Joint tenants on one tenancy must all meet the student test, meaning they are full-time students or you reasonably believe they will become one. A student with their own tenancy in a mixed HMO can still be covered. For any tenancy outside the ground, 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 £40,000, potential prosecution with an unlimited fine, and rent repayment orders of up to 24 months' rent per tenant. As an illustration, for a six-bed HMO at £600 per room, 24 months' rent across all six tenants comes to £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, rooms do not need their own EPC today. The government says it intends to require a whole-building EPC and consulted on a 24-month transition. Those rules have not been made yet.
What happens if a tenant leaves mid-year in my HMO?
Under the Renters Rights Act, any tenant can leave with two months' notice. You cannot prevent this. 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 most properties, though rooms in an HMO do not need their own, and a valid HMO licence (if applicable) to operate as an HMO. Plan for both by checking your EPC compliance costs and your licensing renewal timeline simultaneously.