Landlord licensing: mandatory HMO, additional and selective

By Laura at Domovita

Last reviewed: 30 May 2026. This guide is general information, not legal advice. Licensing rules can change and the detail varies by area, so always confirm the current position with your local council and the gov.uk guidance linked below.

The three types of property licence

In England there are three licensing regimes a private rented home might fall under. Understanding which one (if any) applies to your property is the starting point for letting legally.

• Mandatory HMO licensing - applies across the whole of England to larger houses in multiple occupation (HMOs). The threshold is the same wherever your property is.
• Additional HMO licensing - extends licensing to smaller HMOs that fall below the mandatory threshold. This is introduced by individual councils, area by area.
• Selective licensing - can require a licence for ordinary single-household rentals (not just HMOs) in a designated area. This is also set council by council.

The crucial point that runs through this whole guide: only mandatory HMO licensing applies uniformly. Whether your property needs an additional or selective licence depends entirely on where it is, and a scheme in one street does not mean there is a scheme in the next town. We cannot tell you whether your specific area has a scheme - you have to check your council.

Mandatory HMO licensing

A house in multiple occupation (HMO) is, broadly, a property rented to several people who are not all members of one household and who share facilities such as a kitchen or bathroom. Mandatory HMO licensing applies across England to the larger HMOs.

The widely used threshold is a property occupied by 5 or more people forming 2 or more separate households, who share an amenity such as a kitchen, bathroom or toilet. A "household" generally means a single person or members of the same family living together. So, for example, a house shared by five unrelated working professionals will typically need a mandatory HMO licence.

If your property meets the HMO definition, you must apply to your local council for a licence - it is the council, not central government, that issues it. The detail of exactly which properties count, and any local variation, is set out in the official guidance, so check the current rules before you let:

• gov.uk: house in multiple occupation licence
• gov.uk: renting out an HMO

Additional HMO licensing

Additional licensing lets a council extend HMO licensing to smaller HMOs that sit below the mandatory 5-person threshold - for example, a property shared by three or four people forming two or more households. A council can designate all or part of its area for additional licensing where it considers a significant proportion of smaller HMOs are being poorly managed or causing problems.

Because additional licensing is a local decision, two identical three-bed house shares can have completely different licensing requirements depending on which council area each sits in. There is no national list you can rely on for a definitive answer about your property - the only authoritative source is the council for the area where the property is located.

Selective licensing

Selective licensing is the broadest in reach: it can require a licence for privately rented homes that are not HMOs at all - including a standard property let to a single household. Councils introduce selective licensing in designated areas to tackle issues such as low housing demand, anti-social behaviour, poor property conditions or migration pressures.

If your single-let property is in a selective licensing area, you will need a licence even though nothing about the property itself would otherwise suggest one is required. This is exactly why checking matters: a landlord can be caught out simply because they did not realise their street fell inside a designated zone.

How to check whether your property needs a licence

There is one reliable way to find out: ask the local council for the area where the property is. Licensing designations are published by each council and can be introduced, renewed or allowed to lapse over time, so even a property that did not need a licence a few years ago might need one now (or vice versa).

• Start with the gov.uk council finder to identify the right local authority: gov.uk: find your local council.
• Then search that council's website for "private rented property licensing", "HMO licensing" and "selective licensing", or contact their housing or private-sector housing team directly.
• Confirm the mandatory HMO position against the national guidance: gov.uk HMO licence.

Do not rely on what applies to a friend's property or a property in a neighbouring area. The council is the authoritative source, and the answer is specific to the exact address.

What a licence involves

Although the precise conditions vary by council and licence type, a property licence generally covers the same broad ground. You can typically expect:

• An application and fee - paid to the council, often covering a fixed licence period (commonly up to five years, though this varies). Fees differ widely between areas.
• A "fit and proper person" assessment - the council checks that the licence holder (and any manager) is suitable, taking into account matters such as relevant criminal convictions or past breaches of housing law.
• Property and amenity standards - conditions on the condition of the property, and for HMOs, minimum room sizes and adequate shared facilities for the number of occupants.
• Safety and management conditions - up-to-date gas and electrical safety records, working smoke and carbon monoxide alarms, and proper management arrangements. These sit alongside your existing legal duties rather than replacing them.

A licence does not remove your other obligations. You still need, for example, a valid EPC, deposit protection, Right to Rent checks and the rest of the standard landlord requirements - the licence is in addition to those, not instead of them.

Consequences of letting an unlicensed property

Letting a property that should be licensed but is not is a serious matter, and the penalties can be significant. The exact figures and remedies are set in legislation and can change, so treat the points below as the general shape of the risk and check the current position before relying on any specific number:

• Financial penalty or prosecution. Operating an unlicensed HMO or breaching licence conditions is a criminal offence. Councils can impose a substantial civil penalty as an alternative to prosecution, or take the case to court where an unlimited fine is possible. Check the current thresholds on the gov.uk guidance.
• Rent repayment orders. A tenant (or the council) can apply for a rent repayment order, which can require the landlord to repay rent received during the period the property was unlicensed - potentially up to 12 months' rent.
• Restrictions on regaining possession. Where a property is unlicensed, a landlord's ability to use certain possession routes can be restricted. The possession framework changed significantly under the Renters' Rights Act 2025, so confirm the current rules before serving any notice.
• Management orders and banning orders. In serious or repeated cases, councils have further powers, and the most serious offenders can be entered on a national database of rogue landlords.

For the official overview of HMO licensing and the consequences of non-compliance, see gov.uk: house in multiple occupation licence. For your specific area and the selective or additional schemes that may apply, your local council is the authoritative source.

The bottom line

Mandatory HMO licensing applies to larger shared houses everywhere in England - broadly five or more occupants forming two or more households. Additional HMO licensing (for smaller HMOs) and selective licensing (for ordinary single lets) are decided locally and exist only where a council has chosen to introduce them. Because those two can apply to a perfectly ordinary rental and carry the same heavy penalties when missed, the single most important step before you let is to check the licensing position for that exact address with the local council. It takes a phone call or a web search, and it is far cheaper than a rent repayment order.

Frequently asked questions

Does my rental property need a licence?

It depends on the property and where it is. A larger HMO (broadly 5 or more people forming 2 or more households) needs a mandatory HMO licence anywhere in England. Smaller HMOs and ordinary single lets may need an additional or selective licence, but only if your local council has introduced a scheme covering that address. Check directly with the council for the area.

What counts as an HMO?

An HMO (house in multiple occupation) is broadly a property rented to several people who are not all from one household and who share facilities such as a kitchen or bathroom. A household generally means a single person or members of one family. Mandatory licensing applies to the larger HMOs - typically 5 or more occupants forming 2 or more households. See gov.uk for the full definition.

What is the difference between selective and additional licensing?

Additional licensing extends HMO licensing to smaller HMOs that fall below the mandatory 5-person threshold. Selective licensing applies to privately rented homes that are not HMOs at all, including ordinary single-household lets. Both are introduced by individual councils in designated areas, so whether either applies to your property depends entirely on its location.

How do I find out if my area has a licensing scheme?

Ask the local council for the area where the property is. Use the gov.uk council finder to identify the right authority, then search their website for HMO, additional and selective licensing, or contact their private-sector housing team. Designations change over time, so confirm the current position rather than relying on what applied previously or to a nearby property.

What happens if I let an unlicensed property that needed a licence?

Operating an unlicensed HMO is a criminal offence. Councils can issue a substantial civil penalty or prosecute, tenants or the council can seek a rent repayment order of up to 12 months' rent, and your ability to regain possession can be restricted. The exact figures are set in legislation and can change, so check the current gov.uk guidance for the precise penalties.

Is a licence all I need to let legally?

No. A licence is in addition to your other duties, not a replacement for them. You still need a valid EPC, deposit protection where you take a deposit, Right to Rent checks, gas and electrical safety records, working smoke and carbon monoxide alarms, and the other standard landlord requirements. The licence sits on top of those obligations.

Related guides

• The Renters' Rights Act 2026: what private landlords need to do
• UK Lettings Compliance - the Landlord Checklist
• A Landlord's Guide to UK Lettings (2026)
• List your rental on Domovita - free for private landlords