How many people can legally live in your rental?

House-sharing has been a part of London life; however, rising rents have pushed more people into tighter living arrangements than ever before. As a result, the UK rental overcrowding rules are being tested more frequently, often without tenants and landlords realising they’ve crossed the occupancy threshold.

Many landlords are made aware of the issue when a council inspection lands on their doorstep. The consequences are heavy; fines for overcrowding a rental property can reach up to £30,000 or even criminal prosecution, even if the breach was unintentional. This is because overcrowded homes are linked to health, wellbeing and safety issues for tenants.

When sharing becomes an HMO: The licensing rules

Every landlord needs to understand that occupancy is not just about square footage; it‘s also about who lives in the property. Under the current regulatory framework, a property becomes a mandatory HMO (House in Multiple Occupation) when five or more people from two or more separate households reside together under one roof. This triggers an HMO licence requirement and in case you don’t hold one, you could end up facing enforcement action.

Further, ensure you keep an eye out for Additional Licensing schemes, especially in certain London boroughs. For instance, Brent, Ealing and Newham operate systems where a three-person or four-person share still requires a licence. This means that the magic number is NOT five everywhere and you need to keep checking with your local authority before proceeding with a tenancy.

How many people can legally fit within your London property?

The Housing Act 1985 provides a strict formula to calculate the number of permitted number of occupants within your property. This formula is based on the age unit system.

What is the formula to calculate units?

Children and adults aged 10 years and over = 1 unit.

Children aged 1 to 10 years = 0.5 units.

Babies under 1 year = 0 units

Room size matters, too. If a room is under 4.64 sq m, it cannot legally be used for sleeping. Rooms sized between roughly 6.5 and 10.2 sq m can house only one person and rooms of 10.22 sq m or larger can legally only sleep two. Regardless of the floor plan, if the permitted limit for the units is exceeded, the property is technically considered statutorily overcrowded. These rules are NOT negotiable.

What is the living room loophole?

A commonly asked question from landlords seeking to maximise rental yield is, “Can the living room count as a bedroom?”

The legal answer is yes, under the Housing Act 1985, any room normally used as a living room or bedroom can be counted in when calculating sleeping capacity. In rare cases, this can help avoid a statutory overcrowding designation. However, practically, using a living room as a bedroom leads to lifestyle issues and professional landlords often advise against it. Wear and tear increases, poor ventilation, tenant turnover rises and even if legal, this practice reduces the attractiveness and rental value of the property.

The Room Standard: Privacy, gender and children

The second side to overcrowding is when two people of the opposite sex, who are not a couple, have to share a sleeping room. This rule is applicable once children turn 10 years old. For instance, children (opposite genders) aged 11 and 12 years old cannot legally share a bedroom, even if it's a large space.

If this happens in a one-bed apartment, the tenancy is considered legally overcrowded under this standard, even though it is separate from the space calculation.

Why does compliance matter?

Overcrowding is a strict liability offence and ignorance does not stand as a defence. Even well-intentioned landlords can end up on the wrong side of the law if they assume, rather than check, occupancy limits. This is why early planning matters.

• Check if the selected Borough has an Article 4 direction or Additional Licensing in place.
• Measure the floor and do not include areas with a ceiling height below 1.5m.
• Audit the household, as it will help mark children who have turned 10 since the last inspection.

Benham and Reeves can help with compliance

If you are managing properties from overseas or are aiming to expand your UK rental portfolio, Benham and Reeves India can advise on UK rental overcrowding rules, HMO licence requirements and the Housing Act 1985 regulations, assess room size against legal standards and help structure tenancies to ensure they meet the law as well as tenant expectations.

With dedicated on-ground teams in India and London, we ensure you comply with the UK lettings and investment regulations before a tenancy begins. Contact the team today to schedule a one-on-one consultation.