HMO Licence
UK HMO licensing schemes mapped: 30 councils, fees and thresholds
Updated 2026-05-21 · 9 min read
HMO licensing is set by your council, not by Parliament. Mandatory licensing for HMOs of five or more occupiers in two or more households applies UK-wide. Additional licensing for smaller HMOs and Selective licensing for all rented stock in a designated area are decided locally. This guide maps the current scheme position across 30 of the largest UK councils — and explains the practical differences for a landlord choosing where to buy or how to convert.
The three tiers, explained
**Mandatory** licensing covers any HMO of five or more occupiers in two or more households. It applies across England, Wales and Northern Ireland under the Housing Act 2004. Scotland uses a different framework where every HMO of three or more unrelated occupiers needs a council HMO licence.
**Additional** licensing is a council-designated scheme covering smaller HMOs — typically three or more occupiers in two or more households. The council must consult and publish a designation. Schemes run for up to five years and can be renewed.
**Selective** licensing covers every privately rented property in a designated area regardless of HMO status. It exists primarily to tackle anti-social behaviour and poor housing conditions. The Newham, Liverpool and Nottingham city-wide schemes are the largest examples.
London — 18 boroughs at a glance
Most inner and east London boroughs operate borough-wide Additional Licensing on top of the Mandatory scheme. Newham was the first to introduce borough-wide Selective Licensing. Waltham Forest, Enfield, Haringey and Croydon now have similar broad schemes; Hammersmith and Fulham, Camden and Islington focus on Additional rather than Selective. Outer boroughs (Bromley, Sutton, Richmond) tend to stick to the Mandatory scheme only.
Typical mandatory licence fee band across London: £1,000 to £1,500. See our [London borough HMO pages](/hmo-licensing) for the council-specific position.
Major English cities outside London
**Liverpool, Nottingham and Salford** operate near-city-wide Selective Licensing covering most of the private rented stock. Letting outside a licence in these cities is a criminal offence with no de facto exception.
**Manchester, Birmingham, Leeds, Sheffield, Bristol and Brighton** focus Additional Licensing on student-belt neighbourhoods (Headingley, Selly Oak, Crookes, Cathays, Hanover) with narrower Selective designations where social conditions justify it.
Typical mandatory licence fee band outside London: £850 to £1,400.
Wales, Scotland and Northern Ireland
**Wales** requires every landlord to register and license under Rent Smart Wales — a separate national framework on top of any council HMO scheme. Cardiff and Swansea operate Additional Licensing schemes in the student belts.
**Scotland** has no Mandatory/Additional/Selective split. Every HMO of three or more unrelated occupiers needs a council HMO licence. Landlord Registration is required for every let property regardless of HMO status.
**Northern Ireland** runs a single HMO Registration Scheme managed centrally. Mandatory thresholds match the rest of the UK.
Practical implications for portfolio planning
If you buy a four-bed Victorian terrace and let it to three students in three households in Headingley (Leeds), Cathays (Cardiff) or Sparkbrook (Birmingham), you will probably need an Additional licence even though you fall below the Mandatory threshold.
If you let a single-family home in Liverpool city centre, you will probably need a Selective licence even though the property is not an HMO at all.
Always check the council's official HMO page before letting. Our [council pages](/hmo-licensing) link directly to each council's licensing page.
What happens if you let an unlicensed HMO
Letting a property that requires a licence without one is a criminal offence. Penalties include unlimited fines on conviction, civil penalty notices of up to £30,000, Rent Repayment Orders (a tenant can reclaim up to twelve months of rent), banning orders, and inclusion on the council's rogue landlord database.
The Renters' Rights Bill (in progress through Parliament) is expected to expand Rent Repayment Order availability and the database visibility.
Common questions
- Does my flat in a converted house need an HMO licence?
- Self-contained flats are not HMOs. A property is an HMO only when occupants share kitchen, bathroom or toilet facilities. A house converted into separate self-contained flats with their own kitchens and bathrooms is not an HMO under the Housing Act 2004.
- Can a council change its scheme mid-licence?
- Yes. Schemes are designated for up to five years. Your existing licence remains valid until expiry, but the renewal terms can change. Always watch the council's consultation announcements.
- Do I need a licence for short-let or Airbnb-style HMO?
- Mandatory and Additional licensing apply to longer-let tenancies, not strictly to short-let. Most councils enforce separate planning and short-let registration requirements. Scotland has a separate short-let licensing scheme.