Landlord licensing requirements explained

The three types of licence

Mandatory HMO licensing

Required nationwide for HMOs occupied by five or more people forming two or more households. This is set by law and applies regardless of where the property is.

Additional licensing

A local scheme that extends licensing to smaller HMOs (for example three or four occupants) in a designated area where the council considers it necessary.

Selective licensing

A local scheme that can require a licence for ordinary single-family lets in a designated area, often to tackle low housing demand or anti-social behaviour.

How to check your area

1. 1Identify the local authority for the property's postcode.
2. 2Check the council's housing/licensing pages for additional and selective schemes.
3. 3Confirm whether the property meets the mandatory HMO threshold.
4. 4If in doubt, contact the council's private sector housing team before letting.

The application process

You apply to the local authority, pay a fee (which varies by council and licence type), and provide details of the property, the manager and relevant certificates. The council assesses whether you are a 'fit and proper person' and whether the property and management arrangements are satisfactory. Licences usually last up to five years and carry conditions you must meet.

Typical licence conditions

• Provide and maintain valid gas and electrical safety certificates.
• Ensure working smoke and carbon monoxide alarms.
• Keep the property in good repair and not overcrowded.
• Provide a written tenancy agreement and manage the property responsibly.

Penalties for non-compliance

Letting a property that requires a licence without one can lead to an unlimited fine or a financial penalty of up to £30,000, a rent repayment order of up to 12 months' rent, and difficulty obtaining possession. Councils actively enforce licensing, and tenants can apply for rent repayment orders themselves.