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 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.

Additional Licensing: Costs, Areas and How to Apply

Q: 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.

Additional licensing is a discretionary power available to local housing authorities in England and Wales under the Housing Act 2004. It allows councils to extend HMO licensing requirements beyond the national mandatory threshold to cover smaller houses in multiple occupation (HMOs) that would not otherwise require a licence.

Understanding additional licensing is important for landlords in areas where councils have chosen to designate additional licensing schemes, because operating an unlicensed HMO in a designated area can result in fines of up to £30,000, a banning order, and a Rent Repayment Order of up to 12 months' rent.

The Difference Between Mandatory and Additional Licensing

Mandatory HMO licensing applies nationally to all HMOs occupied by five or more people forming two or more households. This is a baseline set by central government and applies everywhere in England and Wales regardless of whether the council has designated any scheme.

Additional licensing goes further. A council can designate an additional licensing area to cover HMOs that fall below the mandatory threshold, typically those with three or four occupants forming two or more households. Some councils also use additional licensing to cover HMOs in converted blocks of flats or purpose-built student accommodation.

The key distinction is that mandatory licensing is automatic and national, while additional licensing is local, discretionary, and requires the council to formally designate an area and consult residents and landlords before the scheme begins.

What Is Selective Licensing and How Does It Differ?

It is important not to confuse additional licensing with selective licensing. Selective licensing applies to all privately rented properties in a designated area, not just HMOs. A property with a single tenant can fall within a selective licensing area and require a licence, even though it would never require a mandatory or additional HMO licence.

Additional licensing, by contrast, only applies to HMOs. A property must be an HMO (shared by multiple households) to require an additional licence.

A property could theoretically require both an additional HMO licence and a selective licence if the council has designated overlapping schemes, though in practice councils usually design their schemes to avoid duplication.

For a full comparison, see our guide: Selective vs Additional Licensing: What Is the Difference?

Which Councils Have Additional Licensing Schemes?

Additional licensing schemes are concentrated in areas with high concentrations of student housing or shared accommodation. Councils that have historically operated additional licensing schemes include:

London Borough of Newham - one of the earliest and most extensive additional licensing schemes in England, covering all HMOs with three or more occupants
Leeds City Council - operates additional licensing in the Headingley, Hyde Park, and Woodhouse areas, targeting student HMOs
Nottingham City Council - operates additional licensing across the city, covering HMOs with three or more occupants
Bristol City Council - operates additional licensing in designated areas including Clifton and Redland
Liverpool City Council - operates additional licensing in areas of high HMO concentration

Use the Tuxa property licence checker to check whether your specific property falls within an additional licensing area. Scheme boundaries change regularly and manual checks on council websites can be unreliable.

How to Apply for an Additional Licence

The application process for an additional HMO licence is broadly the same as for a mandatory licence. You will need to:

Identify the correct licensing authority (usually the local housing authority for the area where the property is located)
Complete the council's application form, which typically asks for details of the property, the licence holder, the managing agent (if applicable), and the proposed maximum occupancy
Provide supporting documentation including a floor plan, gas safety certificate, electrical installation condition report (EICR), and evidence of working smoke and carbon monoxide alarms
Pay the application fee, which varies by council but typically ranges from £300 to £900 for a five-year licence

Most councils now accept online applications. Processing times vary but are typically four to eight weeks.

Fees and Costs

Additional licensing fees are set by each council and vary considerably. Typical fee ranges in 2025-2026 are:

Council type	Typical fee range (5-year licence)
London boroughs	£600 to £1,200
Major cities (Manchester, Leeds, Birmingham)	£400 to £900
Smaller councils	£250 to £600

Some councils charge a split fee: an initial non-refundable application fee (typically £150 to £300) plus a grant fee payable on licence approval. Others charge a single fee upfront. Check the council's current fee schedule before applying, as fees are updated periodically.

Penalties for Operating Without an Additional Licence

Operating an HMO in an additional licensing area without a valid licence is a criminal offence under the Housing Act 2004. The penalties are the same as for mandatory HMO licensing:

A civil financial penalty of up to £30,000 (increased to £40,000 under the Renters' Rights Act 2025 once commenced)
A criminal prosecution leading to an unlimited fine
A banning order preventing you from letting property for up to five years
A Rent Repayment Order requiring you to repay up to 12 months' rent to the tenant or the local authority

Councils have become significantly more active in enforcement. Birmingham City Council issued over £450,000 in civil penalties in 2023-2024. Salford City Council recovered over £2.2 million through Rent Repayment Orders in the same period.

For a full breakdown of penalties and enforcement, see: Rental Licensing Fines: What UK Landlords Need to Know

What Happens If My Licence Application Is Refused?

Councils can refuse an additional licence application if they are not satisfied that the proposed licence holder or manager is a fit and proper person, or that the property meets the required standards. For more detail on the refusal and revocation process, see: Can a Housing Licence Be Refused or Revoked?

Frequently Asked Questions

Does additional licensing apply in Scotland or Wales? No. Additional licensing under the Housing Act 2004 applies only in England and Wales. Scotland has a separate HMO licensing regime under the Housing (Scotland) Act 2006, administered by local councils. Wales operates under the Housing (Wales) Act 2014 and Rent Smart Wales for landlord registration, with HMO licensing under the Housing Act 2004 as applied to Wales.

Can I let a property while my additional licence application is pending? Yes. If you submit a complete application before your existing licence expires, or before the scheme's start date if you are applying for the first time, you can continue to let the property while the application is processed. This is known as the "pending application" protection. However, you must have submitted a valid application before the deadline.

How long does an additional licence last? Additional HMO licences are typically granted for up to five years, though councils can issue shorter licences if they have concerns about the management of the property. Licences are not automatically renewed and you must apply for a new licence before the current one expires.

Does an additional licence cover all HMOs in a building? No. Each HMO requires its own separate licence. If you own a block of flats where multiple flats are HMOs, each flat will need its own additional licence.

What is the difference between an additional licence and a selective licence? An additional licence applies to HMOs (properties shared by multiple households). A selective licence applies to all privately rented properties in a designated area, including single-household lets. A property could require both if the council has designated overlapping schemes.

Check Whether Your Property Needs an Additional Licence

Use the Tuxa property licence checker to instantly check whether your property falls within an additional licensing area. Enter any UK address and get an instant result showing which schemes apply, scheme dates, fees, and a direct link to the council's licensing page.

You can also track active licensing consultations and upcoming scheme changes to stay ahead of new schemes in your area.

Editorial QA record

Field	Detail
Jurisdiction	England and Wales
Governing legislation	Housing Act 2004, ss.55-78
Regulator	Ministry of Housing, Communities and Local Government (MHCLG)
Primary sources	Housing Act 2004, MHCLG selective licensing guidance
Last reviewed	March 2026
Reviewed by	Ben Yarrow, Founder, Tuxa
QA status	Passed
What changed	New article created to resolve orphan URL /articles/what-is-additional-licensing