Additional HMO Licensing UK 2026

Mandatory vs additional HMO licensing

Mandatory HMO licensing applies nationally to all HMOs with 5 or more occupants from 2 or more households sharing facilities — there is no opt-out and no council discretion on whether to operate it
Additional licensing is a discretionary scheme that a local authority can introduce to extend licensing requirements to smaller HMOs (typically 3 or 4 occupants) or to all HMOs in defined areas where mandatory licensing does not apply
A council must consult before introducing an additional licensing scheme and must be satisfied that a significant proportion of HMOs in the area are being managed poorly or that it will improve conditions
Additional licensing schemes last up to 5 years and must be renewed — check your council's website for current scheme dates and geographical coverage
The practical consequence: a council with an additional licensing scheme may require a licence for a 3-person HMO that would be exempt from licensing in a neighbouring council. Always check the licensing position for the specific local authority before purchasing

Additional licensing is common in London boroughs (Newham, Brent, Ealing, Haringey, Hackney, Waltham Forest, Lewisham, Tower Hamlets), as well as many university towns and high-HMO cities nationwide
Schemes vary significantly: some cover only specific wards with high HMO density; others cover the entire local authority area. The licence fee and application requirements also vary
Check the council's website under 'HMO licensing' or 'private rented sector licensing' — the scheme boundaries and active dates will be published. The MHCLG register of selective and additional licensing schemes is also a useful cross-reference
New schemes: councils can introduce new additional licensing schemes at any time, subject to consultation. Monitor planning committee and housing committee agendas if you hold HMOs in an area where a scheme has been discussed
Expiry: when a scheme expires, licensing obligations for properties covered by that scheme cease (unless renewed). Check renewal dates and apply for renewal well before expiry to avoid a gap in licence coverage

Application process: submit via the council's online licensing portal. Required information typically includes: property address and layout, number of rooms and occupants, landlord contact details, managing agent details (if applicable), safety certificates (gas, EICR, fire alarm, emergency lighting where required)
Fit and proper person test: the same test as for mandatory licensing applies — the landlord (and any agent) must not have unspent convictions for specified offences and must not be subject to Banning Orders or rent repayment orders
Licence conditions: additional licences impose conditions covering property standards, management obligations, tenancy management, and sometimes anti-social behaviour requirements. Read the conditions carefully before accepting the licence
Fee: set by each council — typically £500–£1,500 per property for a 5-year licence. Some councils offer discounts for accredited landlords
Licence transfer: a licence is granted to the named licence holder and cannot be transferred to a new owner on sale. The buyer must apply for a new licence before or immediately after completion

Operating an unlicensed HMO in an additional licensing area is a criminal offence — the same as operating without a mandatory licence. Maximum fine of £30,000 (or unlimited in a magistrates' court)
Rent Repayment Order (RRO): tenants can apply to the First-tier Tribunal for an RRO requiring the landlord to repay up to 12 months' rent. The local authority can also apply for an RRO on behalf of tenants
Section 21 restriction: a Section 21 notice (now abolished under RRA 2025) — and under the post-RRA regime, serving a valid Section 8 possession notice — requires that the property is properly licensed. An unlicensed HMO may face complications in possession proceedings
Interim management order: in serious cases, the council can apply for an interim management order, taking over management of the property and collecting rent directly
Defence: a landlord who has applied for a licence and is awaiting a decision has a defence against prosecution — apply as soon as you are aware the property falls within the scheme. Do not wait for the council to contact you

HMO licensing and planning permission (Article 4 direction) are separate regimes — having a licence does not mean you have planning permission, and having planning permission does not mean you have a licence
A council can grant an HMO licence for a property that lacks C4 planning permission — the licensing team and the planning team are separate departments and do not automatically cross-check
However, a planning enforcement notice requiring the property to revert to C3 use will override the HMO licence — the licence cannot be used to continue an unlawful HMO use
When purchasing an HMO, verify both the planning position (C4 or sui generis use confirmed) and the licensing position (valid licence in place) independently. Do not rely on the seller's representations
Some councils are now coordinating planning and licensing checks — but this is not universal. The safest approach remains independent due diligence on both