Guide

HMO licence: mandatory, additional and selective licensing

Some rented homes need a licence from the council. Each council runs its own licensing. It is separate from the national register.

Not legal advice. Every figure on this page states what the linked gov.uk page says.

The mandatory HMO licence

GOV.UK says you need a licence for a large house in multiple occupation. That is one rented to 5 or more people who form more than 1 household and share toilet, bathroom or kitchen facilities.

Each HMO needs its own licence. A licence lasts for up to 5 years and you renew it before it runs out.

Source: GOV.UK: House in multiple occupation licence, checked on 13 October 2026.

Additional and selective licensing

GOV.UK says a smaller property may still need a licence depending on the area.

A council can designate its whole district or part of it for additional licensing of a type of HMO it describes.

A council can also designate an area for selective licensing. The designation then applies to privately rented housing in that area. It can last for up to 5 years. Since 23 December 2024 councils in England no longer need the Secretary of State's confirmation to bring one in.

Sources: GOV.UK: House in multiple occupation licence, checked on 13 October 2026; legislation.gov.uk: Housing Act 2004, section 56, checked on 13 October 2026; GOV.UK: Selective licensing in the private rented sector: a guide for local authorities, checked on 13 October 2026.

How to check

Contact your council to see whether you need a licence. You can apply yourself or a managing agent can apply for you. The council sets the fee.

When a selective licensing designation is confirmed, the council must publish a notice in the area within 7 days.

The Register your rental property service opens first in the West Midlands. Our West Midlands page lists the local licensing schemes there.

West Midlands: register dates and local licensing schemes

Sources: GOV.UK: House in multiple occupation licence, checked on 13 October 2026; GOV.UK: Selective licensing in the private rented sector: a guide for local authorities, checked on 13 October 2026; GOV.UK housing hub: Get ready to register, checked on 13 October 2026.

Fines and civil penalties

GOV.UK says renting out an unlicensed HMO can lead to an unlimited fine.

Instead of prosecuting, a council can impose a civil penalty. Since 1 May 2026 the maximum is £40,000.

Government guidance sets starting points for offences on or after 1 May 2026. These are starting points, not caps: the council moves up or down from them for the facts of the case.

  • unlicensed HMO: £17,000
  • unlicensed property in a selective licensing area: £12,000
  • knowingly letting an HMO be over-occupied: £20,000
  • failing to take safety measures in an HMO: £20,000
  • failing to supply and maintain gas and electricity in an HMO or to supply the gas safety certificate: £12,000
  • not complying with an improvement notice: £25,000

Sources: GOV.UK: House in multiple occupation licence, checked on 13 October 2026; legislation.gov.uk: Housing Act 2004, section 249A, checked on 13 October 2026; GOV.UK: Civil penalties under the Renters' Rights Act 2025 and other housing legislation, checked on 13 October 2026.

Licensing and the register

A licence does not register the property and registering does not license it. The draft Private Rented Sector Database Regulations ask for the property's HMO or licensing status as one of the details you give.

Sources: legislation.gov.uk: Draft Private Rented Sector Database Regulations 2026, checked on 13 October 2026; GOV.UK housing hub: Get ready to register, checked on 13 October 2026.

Sources

Each source shows the date it was last checked. Each guide states what the linked official source says, with the dates and nothing more. England only.

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