Licensing is the compliance area where the answer genuinely is "it depends on your council". Three different schemes can apply, they overlap, and renting unlicensed when you should be licensed can cost you up to a year's rent in a Rent Repayment Order. Here's how to work out where you stand.
The three schemes
1. Mandatory HMO licensing
Applies across England to any house let to 5 or more people forming 2 or more households who share a kitchen, bathroom or toilet. If that's your property, you need a licence — no exceptions for it being a nice house in a quiet street.
2. Additional HMO licensing
A council can extend licensing to smaller HMOs (for example, 3–4 sharers) in its area. Whether it applies depends entirely on the local authority's designation.
3. Selective licensing
A council can require every private rental — not just HMOs — to be licensed within a designated area, often to tackle low housing demand or anti-social behaviour. Two identical houses in neighbouring boroughs can have completely different requirements.
Always check the specific local authority
There is no national map. The only reliable way to know is to check the licensing pages of the council where each property sits — and to re-check, because designations are renewed and changed.
The cost of getting it wrong
- Renting an unlicensed licensable property is a criminal offence and can bring a civil penalty.
- Tenants can seek a Rent Repayment Order of up to 12 months' rent.
- You generally cannot regain possession on certain grounds while unlicensed.
How Rentwire helps
Across a multi-area portfolio, licensing is genuinely hard to hold in your head — different schemes, different renewal dates, different councils. Rentwire records each property's licence type, authority and expiry, so "which licences are due, and which properties might need one I haven't got?" is a question you can actually answer.
Frequently asked questions
- Do I need an HMO licence?
- You need a mandatory HMO licence if you let to five or more people forming two or more households who share facilities. Smaller HMOs may need a licence under a council's additional licensing scheme, and some areas require all rentals to be licensed under selective licensing. Always check the specific local authority.
- What happens if I rent without a required licence?
- It is a criminal offence, can bring a civil penalty, and tenants can apply for a Rent Repayment Order of up to 12 months' rent. You may also be unable to regain possession on some grounds until licensed.
This article is general information for UK landlords and letting agents, not legal, tax or financial advice. Rules change and individual circumstances differ — check the latest guidance from GOV.UK or a qualified professional before acting.