Glossary definition
HMO (House in Multiple Occupation)
A property rented out to three or more tenants who form two or more separate households and share a kitchen, bathroom, or toilet. HMOs require a mandatory licence if occupied by five or more people forming two or more households, and many local authorities have introduced additional licensing schemes.
Definition
A property rented out to three or more tenants who form two or more separate households and share a kitchen, bathroom, or toilet. HMOs require a mandatory licence if occupied by five or more people forming two or more households, and many local authorities have introduced additional licensing schemes. HMO conversions can be highly profitable but require careful due diligence on licensing, planning, and Article 4 restrictions.
See also
Closely related terms.
Article 4 Direction
A direction made by a local planning authority that withdraws specific permitted development rights in a defined area.
Use Class
The classification system under the Town and Country Planning (Use Classes) Order that groups similar land and property uses together.
Planning Permission
Formal consent from the local planning authority required before carrying out most types of development, including new construction, material changes of use, and significant alterations to existing buildings.
Further reading
Guides that touch this term.
Guide
How Does Development Finance Work? A Complete Guide for UK Developers
A ground-up guide to how development finance is structured in the UK, covering loan mechanics, drawdown schedules, monitoring surveyors, and what lenders look for in your application.
5 min read readReadGuide
Legal Due Diligence in Development Finance: What Solicitors Check
Legal due diligence is the backbone of every development finance transaction. This guide explains what solicitors investigate, common issues that delay completions, and how to prepare your legal pack.
9 min read readReadGuide
UK Development Finance Market 2026: Rates, Trends and Outlook
A comprehensive overview of the UK development finance market in 2026, covering current interest rates, lender appetite, emerging trends, and what developers should expect over the coming 12 months.
9 min read readRead
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