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 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.

What is Additional Licensing for HMOs?

Q: 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.

Additional licensing is a discretionary power under Part 2 of the Housing Act 2004 that allows local councils to extend HMO licensing requirements beyond the mandatory national standard. While mandatory HMO licensing applies nationally to all properties occupied by five or more persons forming two or more households, additional licensing brings smaller HMOs within the licensing regime in areas where councils have identified problems with HMO management.

As of March 2026, 55 additional licensing schemes are active across England and Wales, concentrated in university cities and areas with high concentrations of shared housing.

What is an HMO?

A house in multiple occupation (HMO) is defined in section 254 of the Housing Act 2004. The standard test is that a property is an HMO if it is occupied by three or more persons who form two or more households, and who share or lack exclusive use of basic amenities such as a bathroom, toilet, or kitchen.

The definition covers bedsits, shared houses, shared flats, hostels, and some purpose-built student accommodation. It does not cover properties where all occupants are members of the same family, or where the landlord lives in the property with two or fewer lodgers.

How Does Additional Licensing Differ from Mandatory HMO Licensing?

Mandatory HMO licensing is the national baseline. It applies to any property occupied by five or more persons forming two or more households. This threshold was set by the Housing Act 2004 and applies uniformly across England and Wales.

Additional licensing is a local extension of this baseline. Under section 56 of the Housing Act 2004, a council may designate an area for additional licensing if a significant proportion of HMOs in the area are being managed ineffectively, causing or likely to cause problems for the occupants or members of the public. Under an additional licensing scheme, smaller HMOs, typically those with three or more occupants forming two or more households, must also be licensed.

The key distinction is scope: mandatory licensing applies everywhere; additional licensing applies only in areas where a council has made a formal designation.

Which Councils Operate Additional Licensing Schemes?

Additional licensing schemes are most common in university cities where large numbers of shared houses exist. As of March 2026, councils operating additional licensing schemes include:

Birmingham: One of the largest additional licensing schemes in England, covering significant parts of the city including Selly Oak, Erdington, and Handsworth.

Leeds: The Leeds additional licensing scheme covers properties in a number of wards with high concentrations of student and shared housing, including Hyde Park and Harehills.

Bristol: Bristol City Council operates an additional licensing scheme covering HMOs with three or more occupants in designated areas.

Nottingham: Nottingham City Council operates an additional licensing scheme covering the majority of the city, including Hyson Green.

Manchester: Several Manchester wards operate additional licensing schemes, including Fallowfield and Rusholme.

London: Several London boroughs, including Hackney and Newham, operate additional licensing schemes alongside their selective licensing schemes.

Use the Tuxa property licence checker to check whether your specific property falls within any active additional licensing scheme.

What Does an Additional Licence Require?

The conditions attached to an additional HMO licence are broadly similar to those for a mandatory HMO licence. They are set out in the licence itself and may include:

minimum room size standards (sleeping rooms must be at least 6.51 square metres for one adult, 10.22 square metres for two adults);
fire safety requirements including fire doors, fire alarms, and emergency lighting;
gas and electrical safety certificates;
adequate kitchen and bathroom facilities for the number of occupants;
management obligations including responding to repair requests within specified timeframes.

See our guide to HMO room size requirements for the full standards.

How to Apply for an Additional HMO Licence

Applications are made directly to the local council. The process is broadly similar to applying for a mandatory HMO licence:

Check whether your property falls within a designated additional licensing area using the Tuxa checker.
Obtain the required safety certificates (gas, electrical, fire alarm).
Complete the council's application form, either online or by post.
Pay the application fee (typically £500 to £1,200 per property).
Await a property inspection if required by the council.
Receive the licence, which is typically valid for five years.

See our step-by-step guide to how to apply for a selective licence for more detail on the application process.

What Happens if You Operate an Unlicensed HMO?

Operating an HMO without the required additional licence is a criminal offence under section 72 of the Housing Act 2004. The consequences include:

an unlimited fine on criminal conviction;
a civil penalty of up to £30,000 (rising to £40,000 under the Renters' Rights Act 2025);
a rent repayment order requiring repayment of up to 12 months of rent;
a banning order under the Housing and Planning Act 2016.

See our full guide to penalties for renting without a licence.

Related Guides

Sources

Last reviewed March 2026 by Ben Yarrow, founder of Tuxa. Data sourced from council designation orders and MHCLG scheme notifications.