Do I Need a Landlord Licence UK?
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You need a licence if your property is an HMO (House in Multiple Occupation) with 5+ people from 2+ households, or if it's in an area with selective or additional licensing. Check with your local council—requirements vary by area.
Licensing catches many landlords off guard. Operating without a required licence means you can't evict and face heavy fines.
Do I need a licence?
It depends on three factors: property type, occupancy, and your local council's schemes. There's no single national licensing requirement—it varies.
Three types of licensing exist:
- Mandatory HMO licensing: Applies everywhere in England for large HMOs
- Additional licensing: Council-imposed for smaller HMOs in designated areas
- Selective licensing: Council-imposed for all private rentals in designated areas
What is mandatory HMO licensing?
A property needs a mandatory licence if it's occupied by 5 or more people forming 2 or more separate households, who share facilities like kitchen or bathroom.
This is nationwide—every council enforces it. The definition of "household" matters: a couple is one household, unrelated sharers are separate households.
Example: A house with 5 students sharing = licensable HMO. A house with a family of 6 = not an HMO (one household).
What is selective licensing?
Councils can designate areas where ALL private rented properties need a licence, regardless of size or occupancy. This targets areas with low housing demand or antisocial behaviour issues.
Selective licensing is local—it might cover a few streets or an entire borough. You must check with your specific council.
How do I check my area?
Contact your local council's private sector housing team or check their website. Search for "[council name] landlord licensing" or "[council name] selective licensing".
Councils maintain public registers of licensing schemes. Some cover the whole borough; others just specific wards or streets.
What are the penalties?
Operating without a required licence is a criminal offence. Penalties include fines up to £30,000 (civil penalty) or unlimited fines through prosecution. You also lose the ability to use Section 21.
- Civil penalty: Up to £30,000
- Criminal prosecution: Unlimited fine
- Section 21: Invalid without licence
- Rent repayment: Tenants can claim back up to 12 months rent
Frequently asked questions
How much does a licence cost?
Fees vary by council and scheme type. Expect £500-£1,500 for a 5-year HMO licence, sometimes more in London. Selective licensing is usually cheaper but still several hundred pounds.
What conditions come with a licence?
Licences include conditions like maximum occupancy, safety standards, management requirements, and maintaining the property. Breaching conditions is an offence.
Can I license a property retrospectively?
You can apply late, but the period without a licence remains a breach. Tenants can still claim rent repayment for the unlicensed period. Apply as soon as you realise you need one.
Managing this yourself?
LandlordOS helps UK landlords stay compliant and organised:
- Automatic compliance reminders for Gas Safety, EICR, EPC
- Document storage with AI-powered certificate reading
- Tenancy tracking and rent management
LandlordOS tip
Check licensing requirements before you buy a property or take on new tenants. Licensing status affects property value and running costs. Many landlords discover licensing requirements only when trying to evict—by then it's too late.