Does my rental property need a landlord licence?

Whether your property needs a licence depends on where it is located and how it is used. All HMOs (Houses in Multiple Occupation) with 5 or more occupants require a mandatory licence. Many councils also operate selective licensing schemes covering all private rented properties in a defined area, and additional licensing schemes for smaller HMOs. Use the Tuxa checker to instantly find out if your property is in a licensing area.

What is selective licensing?

Selective licensing is a scheme introduced under the Housing Act 2004 that allows local councils to require all private landlords in a designated area to obtain a licence, regardless of the property type or number of occupants. Councils use selective licensing to tackle problems such as anti-social behaviour, low housing demand, or poor property conditions. Failure to obtain a licence can result in a fine of up to £30,000 or a rent repayment order.

What is additional licensing?

Additional licensing extends HMO licensing beyond the mandatory national standard. Councils can designate areas where smaller HMOs (typically those with 3 or more occupants forming two or more households) must also be licensed. Additional licensing schemes are common in university cities and areas with high concentrations of shared housing.

What happens if I rent a property without a licence?

Renting a property without the required licence is a criminal offence. Landlords can face an unlimited fine in court, or a civil penalty of up to £30,000 issued by the council. Tenants can also apply for a Rent Repayment Order, which can require the landlord to repay up to 12 months of rent. Unlicensed landlords cannot serve a valid Section 21 notice to regain possession of their property.

How do I find out if my area has a selective licensing scheme?

The quickest way is to use the Tuxa property licence checker. Enter any UK address or postcode and Tuxa will instantly check against all 361 UK councils to show whether the property is in a selective, additional or mandatory HMO licensing area. Results are free to view.

Landlord Licensing in Wales: Rent Smart Wales, HMOs and the Renting Homes Act

Wales operates a distinct landlord licensing system to England, introduced by the Housing (Wales) Act 2014. The Welsh system is administered by Rent Smart Wales, a national licensing authority, and requires all private landlords to register and, if they self-manage their properties, to obtain a licence.

Rent Smart Wales: Registration and Licensing

Under the Housing (Wales) Act 2014, all private landlords in Wales must:

Register with Rent Smart Wales, regardless of whether they self-manage their properties. Registration is landlord-specific, not property-specific. The registration fee is £45 (online) or £80 (paper).
Obtain a licence if they carry out any letting or management activities themselves. Landlords who use a licensed letting agent to manage all their properties do not need a personal licence, but their agent must be licensed.

The licence requires landlords to complete approved training covering their legal obligations, property management standards, and tenant rights. The licence is valid for five years and must be renewed.

Rent Smart Wales is administered by Cardiff Council on behalf of the Welsh Government. Contact: rentsmartwales.gov.wales

HMO Licensing in Wales

In addition to the Rent Smart Wales requirements, HMOs in Wales may require a separate HMO licence from the local council. The mandatory HMO licensing threshold in Wales is the same as in England: five or more occupants forming two or more households.

Welsh councils can also operate additional licensing schemes for smaller HMOs under Part 2 of the Housing Act 2004, which applies in Wales as well as England. Cardiff and Swansea both operate additional licensing schemes covering smaller HMOs.

The Renting Homes (Wales) Act 2016

The Renting Homes (Wales) Act 2016 fundamentally reformed the private rented sector in Wales, replacing assured shorthold tenancies with "occupation contracts". Key changes relevant to licensing:

All occupation contracts must be in writing and must be provided to the tenant within 14 days.
Landlords must ensure properties meet the Fitness for Human Habitation standard.
The Act introduced new notice requirements and grounds for possession.

The Renting Homes (Wales) Act 2016 came into force on 1 December 2022.

Selective Licensing in Wales

Welsh councils can also operate selective licensing schemes under Part 3 of the Housing Act 2004, which applies in Wales. Cardiff and Swansea both operate selective licensing schemes in designated areas.

Use the Tuxa property licence checker to check whether your Welsh property requires a selective licence in addition to Rent Smart Wales registration.

Key Differences: Wales vs England

Feature	Wales	England
National landlord registration	Yes (Rent Smart Wales)	No
Landlord licensing	Yes (if self-managing)	No national scheme
HMO mandatory threshold	5+ occupants, 2+ households	5+ occupants, 2+ households
Selective licensing	Available to councils	Available to councils
Tenancy type	Occupation contract	Assured shorthold tenancy
Legislation	Housing (Wales) Act 2014; Renting Homes (Wales) Act 2016	Housing Act 2004; Renters' Rights Act 2025

Related Guides

Sources

Last reviewed March 2026 by Ben Yarrow, founder of Tuxa.

Landlord Licensing in Wales: Rent Smart Wales and HMO Requirements