Landlord licensing explained: HMO, additional and selective licences

Do you need a licence to rent out your property? The difference between mandatory HMO, additional and selective licensing, and how to apply.

Checked against official sourcesUpdated 22 October 20266 min read
Landlord licensing explained: HMO, additional and selective licences

Mandatory HMO

5+ people

Set by

Your council

Lasts up to

5 years

Max fine

£40,000

Key takeaways

  • Licensing depends on the property and the area. Two identical houses on different streets can have different rules.
  • A mandatory HMO licence is needed nationally for five or more people from two or more households.
  • Councils can add additional licensing for smaller HMOs and selective licensing for all private lets in an area.
  • It's your job to check. Letting without a needed licence can lead to fines and tenants reclaiming rent.

The three types of licence

Who it coversWhere
Mandatory HMO5+ people, 2+ households, sharing facilitiesAll of England
Additional HMOSmaller HMOs, often 3–4 peopleAreas your council designates
SelectiveMost private rented homesAreas your council designates

Does my property need one?

  1. 1

    Count the households

    A family counts as one household. Unrelated sharers are each their own household.

  2. 2

    Count the people

    Five or more from two or more households means a mandatory HMO licence.

  3. 3

    Check your council's website

    Search for 'additional licensing' and 'selective licensing'. Most councils have a postcode checker.

  4. 4

    Check the dates

    Schemes start and end. A new scheme can cover a property you've let for years.

What you'll need to apply

  1. 1

    Property details

    Floor plans, room sizes and the number of occupiers.

  2. 2

    Safety certificates

    Gas safety record, EICR, EPC and fire safety details.

  3. 3

    Management details

    Who manages the property and how repairs are handled.

  4. 4

    Fit and proper declaration

    Details of any relevant convictions or housing breaches.

  5. 5

    The fee

    Varies widely by council. Some offer early-bird discounts.

Track licences across your portfolio. Keep licence numbers, conditions and renewal dates for each property in Simple Landlord, with reminders before they expire.

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FAQs

Is a house share of three friends an HMO?+

Yes, three or more people from more than one household sharing facilities is an HMO. Whether it needs a licence depends on your council.

How long does a licence last?+

Usually up to five years, though councils can grant shorter licences.

Can I let while my application is pending?+

Yes. Once you've submitted a valid application, you're not committing the offence of operating without a licence.

Does the licence transfer if I sell?+

No. Licences are personal to the holder, so a new owner must apply.

Do I need planning permission for an HMO?+

Possibly. Some councils require it for small HMOs through an Article 4 direction. Check with the planning team.

Written and reviewed by the Simple Landlord Editorial Team

Last reviewed 22 October 2026. This guide is general information, not legal or tax advice.

Sources

Track licences across your portfolio

Keep licence numbers, conditions and renewal dates for each property in Simple Landlord, with reminders before they expire.