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.

Additional HMO Licensing: Which Councils Have It and What to Do

What is an Additional HMO Licensing Scheme?

An additional HMO licensing scheme is a discretionary designation made by a local council under Part 2 of the Housing Act 2004 that extends HMO licensing requirements to smaller Houses in Multiple Occupation (HMOs) that fall below the mandatory licensing threshold.

Mandatory HMO licensing applies nationally to HMOs with five or more occupants forming two or more households. Additional licensing allows councils to extend this requirement to HMOs with three or four occupants forming two or more households in a specific designated area.

Why Do Councils Introduce Additional Licensing?

A council can introduce an additional licensing scheme where it considers that a significant proportion of HMOs in its area are being managed sufficiently ineffectively as to give rise to one or more particular problems. These problems might include poor property conditions, anti-social behaviour, or inadequate management standards.

Before introducing a scheme, councils must consult with affected landlords, tenants, and the local community for at least 10 weeks. The funds raised from licensing fees are ring-fenced and cannot be used for other council services.

How Does Additional Licensing Differ from Selective Licensing?

Additional licensing applies only to HMOs - properties where at least three people from more than one household share facilities. Selective licensing applies to all privately rented properties in a designated area, including single-family lets.

A property could fall within both an additional licensing area and a selective licensing area if the council has designated overlapping schemes. In practice, councils typically design their schemes to avoid duplication.

Feature	Additional Licensing	Selective Licensing
Applies to	HMOs with 3-4 occupants (2+ households)	All private rentals
Trigger	Ineffective HMO management	Low demand, ASB, poor conditions, deprivation
Geographic scope	Designated areas only	Designated areas only

The Scale of Additional Licensing in England

According to Kamma, there are now 128 active licensing schemes across England (covering both selective and additional licensing), with 49 new schemes launched in 2025 alone. Nearly 70% of urban areas are covered by at least one scheme, rising to 88% in London.

The General Approval 2024, which came into force on 23 December 2024, removed the requirement for Secretary of State approval for selective licensing schemes. Additional licensing schemes have never required Secretary of State approval, but the broader trend of increasing licensing activity affects both types of scheme.

Penalties for Non-Compliance

Operating an HMO without a required additional licence is a criminal offence under the Housing Act 2004. Penalties include:

Civil financial penalties of up to £30,000 (rising to £40,000 for serious or repeat offences under the Renters' Rights Act 2025 from 1 May 2026)
Rent Repayment Orders of up to 12 months' rent (rising to 24 months under the Renters' Rights Act 2025)
Inability to serve a valid Section 21 notice

Birmingham City Council, which operates one of the most comprehensive licensing programmes in England, issued £450,000 in fines by August 2025, having conducted over 12,000 inspections. Around one in four compliance inspections required landlords to take action to improve conditions.

How to Check If 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 your property address and we will tell you whether a licence is required and what type. With new schemes launching regularly and boundaries changing, manual checks on council websites are increasingly unreliable.

Check Your Property Now

The fastest way to find out whether your property needs a licence is to use the Tuxa property licence checker — enter any UK address and get an instant result showing which schemes apply, scheme dates, and a direct link to the council's licensing page.