In order to grant a licence for an HMO a local housing authority has to be satisfied as to all of the following:

• that the proposed licence holder and any manager of the property is a fit and proper person
• that the proposed licence holder is the most appropriate person to hold the licence
• that proper management standards are being applied at the property
• that the HMO is reasonably suitable, or can be made suitable, for occupation by the number of tenants allowed under the licence with at least the minimum prescribed standards of amenities and facilities. These include the number, type and quality of shared bathrooms, toilets and cooking facilities.  

The licensing application form will contain questions which enable the local housing authority to decide whether or not the landlord and the property meet the criteria and can be given a licence. 

The Government has specified minimum amenity standards, setting out the requirements for kitchens, bathrooms and toilets in an HMO.  Local housing authorities may use their own amenity standards if they are equal to or higher than the minimum standards.  You should contact the local housing authority in which your property is situated to find out the standards you will have to meet.
If your property does not hold enough amenities for the number of tenants the local housing authority can either:

• grant a licence with conditions that extra amenities will be put in within a specified timeframe
• grant a licence for a smaller maximum number of occupants based on the amenities which are installed
• in properties with the worst conditions they may decide not to grant a licence at all if they cannot be brought up to required standards.

The local housing authority does not have to inspect the property before granting a licence but in some cases an inspection may be necessary in order for the local housing authority to be satisfied that the property is suitable for licensing.

Inspections will also allow the local housing authority to prioritise properties for inspection under the Housing Health and Safety Rating System, which replaces the former Fitness for Human Habitation test.