Additional HMO licensing: which smaller HMOs need a licence

What is additional licensing?

Mandatory HMO licensing covers every HMO in England with 5 or more people in 2 or more households. Additional licensing lets a council go further in a designated area, for example requiring licences for HMOs with 3 or 4 occupiers, or for some converted blocks of flats (section 257 HMOs). The council must consult for at least 10 weeks and consider that a significant proportion of those HMOs are poorly managed.

Additional licensing is different from selective licensing, which covers single-household lets. A property needs only one licence.

Additional HMO licensing schemes in England

Additional HMO licensing scheme rules: who is caught

Each designation defines which HMOs it covers. Read the designation notice on the council page; common wording is "HMOs occupied by 3 or more persons forming 2 or more households". Some schemes also include section 257 HMOs (buildings converted into self-contained flats without meeting 1991 Building Regulations, where less than two-thirds are owner-occupied). Exemptions under Schedule 14 of the Housing Act 2004 still apply, for example buildings managed by some public bodies and some student halls.

How to apply and what it costs

Applications go through the council, usually online. See HMO licence application and HMO licence cost. Letting a licensable HMO without a licence is an offence with a civil penalty of up to £40,000 from 1 May 2026, and can lead to a rent repayment order.