The distinction between mandatory and additional HMO licensing is not always obvious from the property itself. A 4-person HMO is exempt from mandatory national licensing — but in a London borough or a university city with an additional licensing scheme, that same property requires a licence. Checking the licensing position for the specific local authority is essential due diligence before purchasing any property intended for HMO use.
Additional licensing schemes are time-limited (up to 5 years) and geographically specific — the same property may be inside or outside a scheme boundary depending on the ward. Always verify the exact boundary and current scheme dates with the relevant council, not with the seller or their agent.
Mandatory vs additional HMO licensing — the key distinction
Understanding which regime applies to your property determines whether a licence is required:
- 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 to smaller HMOs (typically 3 or 4 occupants) or to all HMOs in defined areas
- 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 the scheme 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 4-person HMO is unlicensed nationally but requires a licence in a council with an additional scheme. Always check the specific local authority's position before purchasing
Which councils operate additional licensing schemes?
Additional licensing is widespread in London and university cities — check specific boundaries carefully:
- 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 by council
- Check the council's website under 'HMO licensing' or 'private rented sector licensing' — 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 areas where a new 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
Applying for an additional HMO licence
The application process broadly mirrors mandatory licensing — but requirements vary by council:
- Application: 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 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
Penalties for operating without an additional licence
Operating an unlicensed HMO carries significant financial and legal consequences:
- Civil penalty: operating an unlicensed HMO in an additional licensing area carries a maximum civil penalty of £30,000 — the same level as for mandatory licensing breaches
- 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 on behalf of tenants
- Possession complications: an unlicensed HMO may face complications in possession proceedings — councils can raise the licensing position as a relevant factor in dispute resolution
- 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 from tenants
- 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
Additional licensing and planning — understanding the interaction
HMO licensing and planning permission are separate regimes that must both be satisfied:
- 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 planning team are separate departments and do not automatically cross-check
- However, a planning enforcement notice requiring reversion to C3 use will override the HMO licence — the licence cannot be used to continue an unlawful planning 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. Independent due diligence on both remains the safest approach
Frequently asked questions
How do I know if my property falls within an additional licensing scheme?+
Check your local council's website — most councils that operate additional licensing publish an interactive map or postcode checker. Look under 'HMO licensing', 'private rented sector', or 'housing' sections. If you cannot find the information online, call the council's licensing team directly. Do not rely on the property listing or seller's solicitor — these often contain errors on licensing status.
My additional licensing scheme is about to expire — do I need to renew?+
If the council renews the scheme (most do, after a fresh consultation period), your licence will need to be renewed for the new scheme period. The council will usually write to existing licence holders before expiry. Apply for renewal promptly — operating between the expiry of your old licence and the grant of a new licence can be a breach if the scheme is renewed without a gap. If the scheme is not renewed, your licensing obligation under that scheme ceases.
Does additional licensing apply to a property I live in with lodgers?+
No — a property where the landlord lives and lets rooms to lodgers (a 'resident landlord') is not an HMO for most licensing purposes. The resident landlord exemption applies to both mandatory and additional HMO licensing. However, once you move out and the property is let to multiple unrelated occupants, it becomes an HMO and licensing requirements may apply.
Can I sell a property with an additional HMO licence?+
Yes — the property can be sold, but the HMO licence cannot be transferred to the buyer. The buyer must apply for their own licence before or immediately after purchase. Agree a process in the sale contract — some buyers require the seller to maintain the licence to exchange and completion, with the buyer applying immediately on completion. Alert your solicitor to the licensing position early in the transaction.