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.

Selective vs Additional Licensing: Key Differences for Landlords

Selective licensing and additional licensing are both discretionary powers under the Housing Act 2004, but they apply to different types of property and are triggered by different conditions. Understanding which scheme applies to your property is essential for compliance.

The Core Distinction

The fundamental difference is the type of property each scheme targets:

Selective licensing applies to all private rented properties in a designated area, regardless of size, type, or number of occupants. A single-occupancy flat in a selective licensing area requires a licence just as much as a five-bedroom shared house.
Additional licensing applies only to HMOs (houses in multiple occupation) in a designated area. A single-occupancy flat is not affected by an additional licensing scheme, but a shared house with three or more occupants forming two or more households is.

Statutory Basis

Both powers are granted by the Housing Act 2004, but under different Parts:

Selective licensing: Part 3 of the Housing Act 2004, specifically section 80
Additional licensing: Part 2 of the Housing Act 2004, specifically section 56

The designation conditions also differ. A selective licensing designation requires evidence of problems such as low housing demand, anti-social behaviour, or high levels of deprivation. An additional licensing designation requires evidence that a significant proportion of HMOs in the area are being managed ineffectively.

Which Properties Are Affected?

Property type	Selective licensing	Additional licensing
Single-occupancy flat	Yes (if in designated area)	No
Family home let to one family	Yes (if in designated area)	No
Shared house, 3 occupants, 3 households	Yes (if in designated area)	Yes (if in designated area)
Shared house, 5+ occupants	Yes (if in designated area)	Yes (if in designated area) + mandatory HMO licence
HMO with 5+ occupants	Yes (if in designated area)	Yes (if in designated area) + mandatory HMO licence

Note: A property can require both a selective licence and a mandatory HMO licence if it is in a selective licensing area and meets the mandatory HMO threshold. In practice, councils issue a combined licence in this situation.

Councils That Operate Both Schemes

Many councils operate both selective and additional licensing schemes simultaneously. Examples include:

Newham: Borough-wide selective licensing plus additional licensing for smaller HMOs
Hackney: Selective licensing in designated wards plus additional licensing
Nottingham: City-wide selective licensing plus additional licensing
Bristol: Selective licensing in designated areas plus additional licensing for HMOs

In these areas, a landlord with a shared house must check whether they need a selective licence, an additional HMO licence, or both. Use the Tuxa property licence checker to check the specific requirements for any address.

Fees and Conditions

Fees for selective and additional licences are broadly similar, typically ranging from £400 to £1,000 per property for a five-year term. The conditions attached to each licence type differ:

Selective licences focus on property management standards, anti-social behaviour, and basic safety requirements.
Additional HMO licences include all selective licence conditions plus HMO-specific requirements such as room size standards, fire safety, and adequate shared facilities.

How to Check Which Scheme Applies to Your Property

Use the Tuxa property licence checker to check any UK address. The checker will identify all active schemes covering the property, including selective, additional, and mandatory HMO licensing requirements.

Related Guides

Sources

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