An owner or manager of an HMO may apply to the LHA for a TEN (Temporary Exemption Notice) . If a TEN is granted the HMO is exempt from licensing and accordingly the manager/ owner does not commit the offence of operating an HMO without a licence.

An LHA may only grant a TEN if it satisfied that the applicant is, or will shortly be, taking steps to ensure the HMO ceases to be subject to licensing. For example, if planning permission has been obtained for the conversion of the HMO to single family occupation.

A TEN can only be granted for a maximum period of three months, but in exceptional circumstances the LHA may issue a second TEN to last a further three months following the expiry of the original. No more than two consecutive TENs may be granted in succession for a given property.

If an LHA refuses to grant a TEN the applicant may appeal to the RPT (Residential Property Tribunal), which can either uphold the LHA decision or reverse it.