HMO Licensing by Council 2026: How to Check If Your Property Needs a Licence

Working out HMO licensing by council in 2026 is one of the most confusing jobs in lettings, because there is no single national map. England has one nationwide mandatory HMO scheme, but on top of it each local authority can layer its own additional and selective licensing schemes covering whole boroughs, individual wards or named streets. A property that needs no licence in one council area can require one a mile away across an administrative boundary, and the fee, the conditions and even the room-size standards can all differ. This guide explains the three licensing types, shows how thresholds change council by council, walks you through the exact steps to check your own address, and works a real example end to end.

Get this wrong and the penalties are severe. An unlicensed HMO can mean an unlimited fine on conviction in the magistrates’ court, or a civil penalty of up to £30,000 imposed directly by the council, plus a Rent Repayment Order forcing you to repay up to 12 months’ rent to the tenant or to the council if housing benefit or Universal Credit was paid. You can also be barred from serving certain possession notices while the property is unlicensed. Licensing duties were not changed or removed by the Renters’ Rights Act 2025, they sit alongside it and they still bite just as hard.

The three types of HMO and property licensing in 2026

There are three separate licensing regimes under the Housing Act 2004. A single property usually falls under only one of them at a time, but which one, if any, depends entirely on its size, its layout and its location. The mandatory scheme is national; the other two only exist where a council has formally designated them.

1. Mandatory HMO licensing (England-wide)

Mandatory licensing applies in every council in England and is set by national regulations, not by the local authority. Since the 2018 reforms, a property needs a mandatory HMO licence if it is occupied by five or more people forming two or more separate households who share an amenity such as a kitchen, bathroom or toilet. The old “three or more storeys” test was removed in 2018, the number of storeys no longer matters for mandatory licensing, so a five-person share over a single floor can still need a licence.

A “household” means a single person, or members of the same family living together (including couples, relatives and certain carer/domestic relationships). Three unrelated sharers are three households; a couple with their two children is one household. This definition is the foundation of every count you will make, so it is worth getting precise. We set it out in full in our guide to what an HMO actually is.

2. Additional HMO licensing (council-designated)

Additional licensing lets a council extend HMO licensing to smaller HMOs that fall below the mandatory five-person threshold, typically HMOs occupied by three or four people in two or more households. A council must consult locally before designating an additional licensing scheme, and the designation runs for a maximum of five years before it must be renewed, redesignated or allowed to lapse. Whether your three-person house share needs a licence therefore depends entirely on whether your council has an active additional scheme covering your particular address. Two streets in the same town can be on opposite sides of a scheme boundary.

3. Selective licensing (council-designated, not just HMOs)

Selective licensing is the broadest regime: it can require a licence for single-family rented homes that are not HMOs at all, within a designated area. Councils use it to tackle poor housing conditions, high deprivation, low housing demand or anti-social behaviour in specific neighbourhoods. Larger selective schemes, those covering more than 20% of the local authority’s geographical area or more than 20% of its privately rented homes, need confirmation from the Secretary of State before they can take effect. Like additional schemes, selective designations last up to five years.

For the bigger picture on how these schemes are designated, renewed and priced across the country, see our national selective licensing areas map, and for the underlying definitions and process, our complete HMO licensing guide.

How the rules differ council by council

The mandatory scheme is the only part that is uniform across England. Everything else is a local patchwork, and that is exactly where landlords trip up.

Because additional and selective schemes are designated street-by-street or ward-by-ward, two neighbouring councils, or even two ends of the same council, can apply completely different rules to physically identical houses. Fees also vary widely between authorities, sometimes by hundreds of pounds for the same five-year licence.

Article 4 directions and planning are a separate hurdle

On top of licensing, many councils have made Article 4 directions that remove the permitted-development right to convert a family home (use class C3) into a small HMO (use class C4) without planning permission. Where an Article 4 direction is in force, you must apply for planning permission to create the HMO as well as obtaining any licence. Licensing and planning are entirely separate legal processes administered under different laws: clearing one does not clear the other, and a licence does not make an unauthorised planning use lawful. Always check both.

Room sizes and amenity standards also vary

National minimum room-size rules set a floor for sleeping rooms in mandatory-licensable HMOs (broadly 6.51 m² for one adult, 10.22 m² for two, and rooms under 4.64 m² cannot be used for sleeping). But individual councils frequently impose higher local standards through their licence conditions, larger minimum rooms, maximum occupancy per bathroom and kitchen, or amenity ratios. The same five-bed property can be lettable to five people in one borough and capped at four in another. Read the council’s HMO amenity standards document, not just the national minimum.

How to check if your property needs a licence, step by step

1. Apply the mandatory test first. Count the occupiers and the households. Five or more people in two or more households sharing facilities means you need a mandatory licence regardless of where the property is. If you are at or above this threshold, you can stop worrying about which council scheme applies, the answer is yes.
2. Identify the correct local authority. Use the GOV.UK “Find your local council” tool at gov.uk/find-local-council by postcode. Property licensing is administered by the district, borough or unitary council, never the county council. In London it is the borough.
3. Search that council’s private-housing or licensing pages. Almost every council publishes its current additional and selective licensing designations, the streets or wards covered, the start and end dates, and the application route. Search for “HMO licensing”, “additional licensing” and “selective licensing” plus the council name.
4. Use the council’s licence checker or address lookup. Many authorities now offer a postcode tool that tells you which schemes apply to a specific address. Where there is no tool, email the licensing team with the full address and ask for written confirmation of which schemes (if any) apply.
5. Check the public register. Councils must keep a register of licensed HMOs under section 232 of the Housing Act 2004. You can ask to inspect it to see whether your property is already licensed, who holds the licence and what conditions are attached, useful when buying a tenanted property.
6. Check planning and Article 4 separately. Ask the council’s planning department whether an Article 4 direction covers the address and whether the current use class permits the HMO. Most council planning pages link out to the GOV.UK Planning Portal for detail.
7. Keep written evidence. Save the council’s confirmation and the date you checked. If a scheme later changes or a council alleges you let unlicensed, your dated record shows you acted in good faith, which can matter when a council decides whether to prosecute or set a civil penalty.

A worked example: the same house, three different answers

Imagine a standard three-bedroom terraced house. You let it to a group of sharers on a single joint tenancy. Here is how the licensing answer changes purely with the headcount and the council.

• Scenario A, 5 working professionals, 5 households, City A. Five people, five households, sharing one kitchen and bathroom. This crosses the mandatory threshold. A licence is required no matter which council, City A, B or anywhere in England.
• Scenario B, 3 sharers, 3 households, City A (no additional scheme). Three unrelated sharers is an HMO by definition, but it falls below the mandatory five-person threshold. City A has no additional licensing scheme and no selective scheme on this street. Result: no licence required, though all other HMO management duties (fire safety, amenity standards, the HMO management regulations) still apply.
• Scenario C, the identical 3-sharer let, but in City B. City B has designated a borough-wide additional licensing scheme for all HMOs of three or more people. The exact same household now needs an additional HMO licence, with a five-year term and a fee that could run to several hundred pounds, plus the supporting certificates.

Now change one tenancy in Scenario B: re-let the same three-bed to a single couple with a child. That is one household, so it is not an HMO at all. But if that street sits inside City A’s selective licensing area, the single-family let still needs a selective licence. The lesson: headcount, household composition and the exact postcode each move the answer independently, and you must run all three tests for every property, every time you re-let.

Common mistakes landlords make

• Assuming “under five people = no licence”. Additional licensing routinely catches three- and four-person shares. Always check the local scheme before you let.
• Relying on the previous owner or letting agent’s word. Schemes are renewed, expanded or allowed to lapse on a roughly five-year cycle. Last year’s answer, or the answer from when you bought the property, may now be wrong.
• Forgetting the licence expires. HMO and selective licences are time-limited (commonly up to five years). Missing a renewal makes the property unlicensed again, exposing you to the same penalties as never having had one, including a Rent Repayment Order for up to 12 months’ rent.
• Confusing licensing with planning. An Article 4 direction can mean you need planning permission to run the HMO even after you hold a licence. They are separate consents.
• Treating licensing as a substitute for the rest of compliance. A licence does not replace your gas, electrical and EPC duties, see our EPC rules for landlords, nor your obligations under the Renters’ Rights Act 2025.

What licensing costs and what councils require

Fees are set locally and vary substantially, and most councils now split them into an application fee (payable up front) and a grant fee (payable when the licence is issued). You will also need a bundle of supporting documents before you apply, typically including a current gas safety record, an Electrical Installation Condition Report (EICR), an EPC, a scaled floor plan showing room sizes and fire-safety provisions, and proof of suitable insurance. For the full benchmark on fees and the complete paperwork list, see our guides on HMO licence cost and the HMO licence application documents checklist.

You also have to satisfy the council that you are a “fit and proper person” to hold the licence, that the management arrangements are satisfactory, and that the property meets the relevant amenity and fire-safety standards. The council can refuse, attach conditions or limit the maximum number of occupiers.

If your property is in the capital, the borough-by-borough picture is especially fragmented, our London landlord guide and the national selective licensing map help you find the right scheme faster.

Where to verify the rules

• Housing Act 2004, Parts 2 and 3 (legislation.gov.uk), the legal basis for mandatory, additional and selective licensing, and the public register duty.
• GOV.UK: House in multiple occupation licence (gov.uk/house-in-multiple-occupation-licence), the plain-English overview and the route to apply via your council.
• Your local council’s licensing pages, the only authoritative source for which additional or selective schemes cover your specific address, the fees, and the local amenity standards.

Always confirm the position with the specific council, because designations change and only the local authority can give you a definitive answer for your address.

Frequently asked questions

How do I find out which council schemes apply to my address?

Identify your district, borough or unitary council using the GOV.UK “Find your local council” tool, then search that council’s website for its HMO, additional and selective licensing pages. Many councils publish a postcode or address checker; where they do not, email the licensing team with the full address and request written confirmation of which schemes apply. Keep the reply on file.

Does a three-bedroom house with three unrelated sharers always need a licence?

No, it depends on the council. Three sharers in three households is an HMO by definition, but it falls below the national mandatory five-person threshold. It only needs a licence if the council has designated an additional licensing scheme that covers the property. In an area with no additional scheme it needs no HMO licence, though all other HMO management and fire-safety duties still apply.

Did the Renters’ Rights Act 2025 change HMO licensing?

No. The Renters’ Rights Act 2025 reformed tenancy types, abolished Section 21 and changed the rent-increase and possession framework, but it did not alter the Housing Act 2004 licensing regimes. Mandatory, additional and selective licensing all continue exactly as before and run alongside your new RRA obligations.

How long does an HMO licence last and what happens at renewal?

Licences are granted for a fixed period, commonly up to five years (some councils issue shorter terms). You must apply to renew before it expires; if it lapses, the property is treated as unlicensed from the expiry date, re-exposing you to fines and Rent Repayment Orders. Set a reminder well ahead of the expiry date so the renewal application is in before the licence runs out.

What is the penalty for letting an unlicensed HMO?

You can face an unlimited fine on conviction in the magistrates’ court, or a civil penalty of up to £30,000 imposed by the council without going to court. On top of that, tenants (or the council, where benefit was paid) can apply for a Rent Repayment Order to reclaim up to 12 months’ rent, and your ability to serve some possession notices can be restricted while the property is unlicensed.

Do I need planning permission as well as a licence?

Sometimes. In areas covered by an Article 4 direction, converting a family home into a small HMO needs planning permission in addition to any licence, because the permitted-development right has been removed. Licensing and planning are separate consents; always confirm both with the council before you let.

Coming soon

Tenancy Pilot is launching soon with per-property HMO management and licence tracking: record each property’s licence number, scheme type and expiry date, set how many rooms and households it holds against the council’s permitted maximum, and receive automatic reminders well before a licence lapses, so you never slip back into being unlicensed at renewal. It will sit inside the same certificate-and-compliance tracker that watches your gas, electrical and EPC deadlines. Join the waitlist to be first to set up per-property licence reminders at launch.

This article is general information, not legal advice. Licensing rules differ by council and change over time. Always check the position for your specific property on GOV.UK, on legislation.gov.uk and with your local authority, and consult a solicitor for advice on your circumstances.