Temporary Exemption Notices Under the Housing Act 2004 Part 2 Section 62
Updated October 2026
Landlords who operate houses in multiple occupation (HMOs) may need to make use of Temporary Exemption Notices (TENs) from time to time. This guide sets out what Temporary Exemption Notices are, when they can be used, and how the process works.
What is a Temporary Exemption Notice?
The Housing Act 2004 Part 2 requires that all properties meeting the definition of a licensable HMO in England and Wales are licensed by the relevant local authority. Operating a licensable HMO without a licence is a criminal offence attracting civil penalties of up to £40,000 under section 249A of the Housing Act 2004, as uprated by the Renters' Rights Act 2025, Rent Repayment Orders of up to 24 months' rent, and other enforcement consequences.
Section 62 of the Housing Act 2004 allows a landlord to notify the local authority of their intention to take steps that will mean the property no longer needs an HMO licence, and allows the authority to grant a short-term exemption from licensing where appropriate. This exemption is granted via the issue of a Temporary Exemption Notice.
A parallel provision exists for properties within a Selective Licensing area under Part 3, Section 86 of the Housing Act 2004. The mechanics are similar, but the applicable regime is different. This article focuses on s.62 TENs for HMO licensing
Why might HMO landlords need a Temporary Exemption Notice?
The overriding principle of Temporary Exemption Notices is that they are temporary arrangements. They allow a property that currently requires a licence to be exempt from the licensing requirement for a short period (up to 3 months, extendable to a maximum of 6 months in exceptional circumstances) during which the landlord takes action that means the property will no longer need to be licensed.
Common reasons an HMO landlord might apply for a TEN include:
The property is being sold and the sale is expected to complete within the exemption period.
The property is being redeveloped, for example returning to a single family dwelling, converting to flats, or changing use.
The landlord intends to reduce occupancy below the mandatory HMO licensing threshold (noting that an additional licensing scheme may still require a licence for smaller HMOs).
The landlord plans to let the property to a single family or other household that would not amount to an HMO under the standard test.
The owner intends to occupy the property themselves, potentially with lodgers.
The property is being transferred to an organisation that does not require a licence, such as a registered social landlord.
A change in occupancy has recently caused the property to become licensable, for example where a tenant has moved a partner in, increasing the household count. A TEN can allow time to resolve the position.
The licence holder has died. In this case, a three-month exemption applies automatically under s.68(8) of the Housing Act 2004.
A property subject to a TEN is treated as if it were licensed for the duration of the exemption. This has practical implications for the landlord's enforcement exposure during the period, and for the ability to deal with existing tenancies.
TENs, tenancies, and the Renters' Rights Act 2025
Before the Renters' Rights Act 2025, a TEN was often relevant to a landlord's ability to serve a valid section 21 notice on tenants of a property that should have been licensed. Section 21 has now been abolished for new tenancies under the RRA 2025, which came into force in phases from May 2026. Landlords of new tenancies rely on the revised grounds for possession introduced by the RRA 2025.
A TEN remains relevant to possession, because it means the property is treated as licensed for enforcement purposes during the exemption period. This can mitigate exposure to Rent Repayment Orders and civil penalties for the historical unlicensed period while the landlord takes steps to resolve the licensing position or recover possession.
Applying for a Temporary Exemption Notice
HMO landlords considering a TEN should think carefully about their strategy before applying. The key questions are: what is the reason for needing a TEN, and how will the situation be resolved before the TEN expires? Where the plan involves bringing a tenancy to an end, the landlord must ensure this is done lawfully, which is particularly important under the RRA 2025 framework.
There are penalties for giving false or misleading information when applying for a TEN. A TEN already issued can be revoked if it later emerges the application was defective, which would mean the property reverts to being an unlicensed HMO with all the consequences that follow.
TENs are applied for in relation to a specific property, not for a landlord's portfolio generally. The application is made to the local authority responsible for HMO licensing in the area where the property is located. Different authorities handle applications slightly differently, and the process may be online, paper-based, or both.
The application can usually be made by the landlord, the manager, or a person authorised to act on their behalf. There is no statutory fee for a TEN application.
A TEN application must include:
Full details of the applicant and the property.
An explanation of why a Temporary Exemption Notice is sought.
An explanation of the specific steps the applicant will take so the property is no longer a licensable HMO.
Supporting evidence where available (for example, a sale memorandum, planning application details, notice served on tenants, or similar).
Once an application for a TEN has been made, the property is treated in the same way as a property for which an HMO licence application has been made for enforcement purposes.
How applications are processed
The legislation allows local authorities to determine TEN applications 'as they think fit'. Local authorities may request further information and may wish to inspect the property before making a decision. They will usually aim to issue a decision within 28 days, but in practice decisions can take longer.
A property that is subject to a TEN is treated as a licensed HMO. The landlord must continue to comply with the HMO Management Regulations and the property must continue to meet HMO standards. The HHSRS Operating Guidance updated from June 2026 continues to apply, and councils retain their mandatory duty to take enforcement action where Category 1 hazards are identified.
Extending a Temporary Exemption Notice
A TEN can be extended for a further 3 months, to a maximum of 6 months in total, where valid grounds for the exemption remain. The legislation says that local authorities can only grant an extension in 'exceptional circumstances'. The term is not defined and is interpreted locally.
An application for a second TEN must usually be made before the first TEN expires. A TEN cannot be extended beyond 6 months in total. If the property remains a licensable HMO at the end of 6 months, a full HMO licence application will be required.
Refusal and appeals
If a local authority decides not to grant a Temporary Exemption Notice, it must promptly serve a notice on the applicant informing them of the decision and the reasons for refusal.
An applicant who has been refused a TEN may appeal the decision to the First-tier Tribunal (Property Chamber) within 28 days of the decision. The appeal is dealt with at a hearing that can consider the matters raised in the original application as well as any new circumstances. The Tribunal has power to confirm or reverse the decision. Where the Tribunal reverses a refusal, it must also direct the authority to serve a TEN on a date it decides.
Summary
Most HMO landlords will not encounter Temporary Exemption Notices very often, if at all. They do, however, have genuine practical uses, both in foreseen and unforeseen circumstances, in helping landlords stay on the right side of the law when a property should normally be licensed as an HMO.
The key takeaways are that TENs are only intended to be used on a short-term basis and are not a mechanism for avoiding the need for HMO licensing. The enforcement environment under the Renters' Rights Act 2025 has become materially more serious, with civil penalties up to £40,000 and Rent Repayment Orders of up to 24 months' rent. Making use of a TEN appropriately can be a useful part of a landlord's compliance strategy.
How Surrey Property Licensing can help
The TEN process has become increasingly important under the current enforcement regime, and getting the application right first time can make a significant difference. We work with landlords, agents, and solicitors across London, the South East, and nationally, including on:
Section 62 TEN applications for HMO licensing exemption.
Section 86 TEN applications for Selective Licensing exemption.
Advice on whether a TEN is the right approach for the circumstances.
Appeals to the First-tier Tribunal against TEN refusals.
Second TEN applications where exceptional circumstances apply.
Full HMO licence applications where the TEN route is not appropriate or has expired.
Representations against enforcement action, including civil penalty representations.
For an initial discussion of your circumstances, please call 01483 608975 or use our contact form.
