If a landlord can clearly show that they intend to stop operating a property as an HMO, or to reduce the number of occupants to below the Licensable level, a Temporary Exemption Notice can be granted by the Council.  The landlord must apply for this Notice, which will run for a maximum of only 3 months.  A Temporary Exemption Notice excuses a landlord, who is in the process of converting from an HMO to another mode of occupancy, from the obligation to Licence the HMO.  In exceptional circumstances, a further Temporary Exemption Notice can be granted for a maximum of a further 3 months.  

At the end of the Temporary Exemption Notice period, the HMO must be licensed, must have ceased to be an HMO, or become subject to an Interim Management Order.

An Interim Management Order is the mechanism by which the Local Authority can take over the management of an HMO, or arrange for a manager of its choosing to run the HMO on its behalf.