HMO licence when the licence holder dies: what happens to an inherited HMO
Published · Updated
An HMO licence when the licence holder dies comes to an end on the date of death, because the Housing Act 2004 says a licence "may not be transferred to another person" and that "if the holder of the licence dies while the licence is in force, the licence ceases to be in force on his death" [1]. To give the family time, the house is then treated for 3 months as if a temporary exemption notice had been served, and the personal representatives can ask the council for a further 3 months [1].
Contact the council's HMO licensing team as soon as possible after the death. For the first 3 months, the house doesn't need a licence [1]. Within that period, the executor can ask the council for a notice covering another 3 months [1]. Use the time to decide who will hold the new licence (the executor, the beneficiary or a manager), and apply. A licence lasts up to 5 years and you need a separate one for each HMO [2]. If the council refuses the extra 3 months, you can appeal to the tribunal within 28 days [1][3].
General information for England and Wales. Licensing is run by each council, so check their process.
The law in plain English
Section 68 of the Housing Act 2004 sets out the rules for HMO licences [1]:
| Subsection | What it says |
|---|---|
| 68(1) | One licence per HMO |
| 68(4) | A licence can last no more than 5 years |
| 68(6) | A licence may not be transferred to another person |
| 68(7) | If the holder dies, the licence ends on their death |
| 68(8) | For 3 months from the death, the house is treated as if a temporary exemption notice was served |
| 68(9) | During those 3 months, the personal representatives can ask the council for a notice covering the next 3 months |
| 68(10) | If the council refuses, the appeal rules for temporary exemption notices apply |
A temporary exemption notice means the house is "not required to be licensed" while it's in force [3].
HMO licence when the licence holder dies: a timeline
| When | What happens | Who acts |
|---|---|---|
| Date of death | Licence ends; automatic 3-month exemption starts [1] | Automatic |
| Within the first 3 months | Executor asks the council for a further notice [1] | Personal representatives |
| If council refuses | Council must give reasons and appeal rights; appeal within 28 days [3] | Personal representatives |
| By end of exemption | New licence application made, or HMO use stops | New licence holder |
If the council agrees, the total period without needing a licence is up to 6 months from the death [1].
Who should apply for the new licence?
GOV.UK says the manager of the house, whether you or an agent, must be considered "fit and proper", for example with no criminal record or breach of landlord laws or code of practice [2]. Options for the new licence holder:
- The executor, if the estate will run the HMO for a while before it's sold or transferred.
- The beneficiary, if the property will pass to them soon and they'll manage it.
- A managing agent, if neither wants to manage it day to day.
Whoever applies must be able to meet the licence conditions.
Licence conditions you inherit
GOV.UK says that with a licence you must make sure the house is suitable for the number of occupants, which depends on its size and facilities, and that the manager is suitable [2]. Councils also set conditions, such as on gas and electrical safety, fire safety and room sizes. Ask the council for a copy of the expired licence and its conditions: the new licence will usually look similar.
Is an inherited house an HMO at all?
You must have a licence if you rent out a large HMO in England or Wales, which is when all of these apply [2]:
- it's rented to 5 or more people who form more than 1 household,
- some or all tenants share toilet, bathroom or kitchen facilities,
- at least 1 tenant pays rent (or their employer pays it).
Even smaller properties may need a licence depending on the area [2]. Some councils run additional HMO licensing or selective licensing of all private lets. See our HMO licence guide, selective licensing explained and council licensing pages.
What about selective licences?
Selective licences are granted under Part 3 of the Housing Act 2004. Section 68 sets out the death rule for HMO licences under Part 2, and section 68(8) refers to the house being treated as exempt "for the purposes of this Part and Part 3" [1]. For a selective licence, ask the council how it applies the death of a licence holder to its scheme.
Running the HMO during the exemption
The exemption only removes the need for a licence. Everything else still applies:
| Duty | Still applies? |
|---|---|
| Gas safety checks every 12 months | Yes [4] |
| EICR every 5 years | Yes [5] |
| EPC | Yes [6] |
| Deposit protection | Yes [7] |
| Repairs and hazards | Yes [8] |
| Fire safety | Yes [8] |
HMOs often have several tenancies with different dates. Map them out: who's in each room, when their tenancy started, how much deposit, and which scheme.
Worked example
Rahul inherits a six-bedroom licensed HMO from his father, who died on 14 March 2026.
| Date | Action |
|---|---|
| 14 Mar 2026 | Licence ends; 3-month exemption begins [1] |
| 20 Mar 2026 | Rahul, as executor, emails the council's HMO team with the death certificate |
| 2 May 2026 | Rahul formally asks for a further 3-month notice [1] |
| 10 May 2026 | Council serves the notice; exemption extends to mid-September |
| July 2026 | Rahul applies for a new licence in his own name |
| September 2026 | New licence granted for 5 years [2] |
Rahul uses Gaffy to track the new licence expiry alongside six gas, EICR and alarm dates, and the tenants report repairs through one link.
Questions to ask the council in the first fortnight
- Do you have a record of the death and the date the licence ended?
- Can you confirm the 3-month period under section 68(8) [1]?
- How do personal representatives request the further notice under section 68(9), and what evidence do you need [1]?
- Can you send a copy of the expired licence and its conditions?
- Is the area covered by additional or selective licensing as well?
- What's the fee and the expected processing time for a new application?
- Will you inspect before granting the new licence?
Keep the council's answers in writing, with dates. If the council decides not to serve a further notice, it must tell you the decision, its reasons, the date it was made and your right to appeal within 28 days [3].
Keep it as an HMO, change its use, or sell?
| Option | Points to weigh |
|---|---|
| Keep as an HMO | Highest rent in many areas, but most management: multiple tenancies, shared areas, fire safety, licence renewals every 5 years at most [1][2] |
| Let as a single household | May not need an HMO licence; check local selective licensing [2] |
| Sell as a going concern | Buyer applies for their own licence, because a licence can't be transferred [1] |
| Sell with vacant possession | Each tenancy needs a lawful end; in England, Ground 1A needs four months' notice and a tenancy at least 12 months old [9] |
Map every tenancy
HMOs often have a different tenancy for each room. Before deciding anything, build a simple table: room, tenant name, start date, rent, deposit amount, deposit scheme, and any arrears. The start dates matter, because the 12-month protected period for the selling and moving-in grounds runs per tenancy [9].
Common mistakes with inherited HMOs
| Mistake | What to do instead |
|---|---|
| Assuming the licence passes with the property | It can't be transferred and ends on death [1] |
| Waiting for the council to get in touch | Contact the council early and ask for the further notice within the first 3 months [1] |
| Forgetting the further notice needs a request | Section 68(9) works only if the personal representatives ask [1] |
| Letting safety checks slip during the exemption | Gas, electrical and fire duties carry on [4][5][8] |
| Re-letting rooms without checking the licence position | Confirm the exemption or the new licence covers the occupancy |
People also ask
Can an HMO licence be transferred?
No. A licence may not be transferred to another person [1].
What happens to an HMO licence when the owner dies?
It ends on the licence holder's death, and the house is treated as exempt for 3 months [1].
Can the executor extend the HMO exemption?
Yes. During the first 3 months, the personal representatives can ask the council for a further 3-month notice [1].
How long does an HMO licence last?
Up to 5 years [1][2].
Do I need a new HMO licence if I inherit an HMO?
Yes, if the property still needs licensing [1][2].
FAQ
What if the licence was in a company's name?
A company doesn't die, so section 68(7) doesn't apply. Check who controls the company now.
What if the licence holder was a managing agent, not the owner?
Then the licence doesn't end on the owner's death. Speak to the council.
What does Gaffy cost for an HMO?
Gaffy is priced per property: £12 a month for up to 5 properties, plus £4 a month per extra property. First month free, and we'll set your properties up for you.
Try Gaffy free for a month · Inherited property hub · HMO licence · HMO licence fees
Sources
- Housing Act 2004, section 68: https://www.legislation.gov.uk/ukpga/2004/34/section/68
- GOV.UK, House in multiple occupation licence: https://www.gov.uk/house-in-multiple-occupation-licence
- Housing Act 2004, section 62: https://www.legislation.gov.uk/ukpga/2004/34/section/62
- Gas Safety (Installation and Use) Regulations 1998, regulation 36: https://www.legislation.gov.uk/uksi/1998/2451/regulation/36
- GOV.UK, Electrical safety standards in the private and social rented sectors: guidance: https://www.gov.uk/government/publications/electrical-safety-standards-in-the-private-and-social-rented-sectors-guidance/electrical-safety-standards-in-the-private-and-social-rented-sectors-guidance
- GOV.UK, Energy Performance Certificates: https://www.gov.uk/buy-sell-your-home/energy-performance-certificates
- GOV.UK, Deposit protection schemes and landlords: https://www.gov.uk/deposit-protection-schemes-and-landlords
- GOV.UK, Renting out your property: landlord responsibilities: https://www.gov.uk/renting-out-a-property/landlord-responsibilities
- GOV.UK, Grounds for possession: guidance for landlords and letting agents: https://www.gov.uk/government/publications/grounds-for-possession-guidance-for-landlords-and-letting-agents/grounds-for-possession-guidance-for-landlords-and-letting-agents