How does it differ from mandatory HMO licensing?
| Mandatory HMO | Additional HMO | |
|---|---|---|
| Applies to | 5+ occupants, 2+ households | 3 to 4 occupants, 2+ households (typically) |
| Coverage | All of England | Only where a council has designated a scheme |
| Legal basis | Section 55, Housing Act 2004 | Section 56, Housing Act 2004 |
| Typical fees | £500 to £1,500 | £400 to £1,200 |
Which councils have additional licensing?
Additional HMO licensing is used by a meaningful number of councils in England, especially in London boroughs and university cities where there is a high concentration of shared housing.
Schemes can cover an entire borough or only specific wards or areas. Use our postcode checker to see if your property is in an additional licensing area, browse the council directory, or see additional HMO licensing areas by region.
When does a council introduce additional licensing?
A council can designate an additional licensing scheme if it considers that a significant proportion of HMOs in the area are being managed ineffectively and are giving rise, or are likely to give rise, to problems for occupiers or the wider area.
Before designating a scheme, the council must carry out a consultation, publish evidence, and consider alternatives to licensing. Larger designations may need Secretary of State approval.
What are the penalties?
The penalties for operating an unlicensed HMO under an additional licensing scheme are the same as for mandatory licensing:
- For offences committed on or after 1 May 2026, GOV.UK guidance refers to civil penalties of up to £40,000 for relevant offences, with different treatment for breaches and for offences committed before that date. Earlier cases may still be assessed under previous rules.
- Criminal prosecution with unlimited fines
- Tenants or local authorities may be able to apply for a rent repayment order. GOV.UK guidance now refers to up to two years' rent for relevant offences, but eligibility, timing and the final amount depend on the facts and tribunal decision.
- From 1 May 2026, Section 21 notices can no longer be used for existing or new private tenancies in England. Transitional rules may still matter for notices served before that date.
Do I need a licence?
If your property is rented to three or more tenants from more than one household and they share facilities, you should check whether your council operates an additional licensing scheme. Even if additional licensing does not apply, mandatory HMO licensing may still apply if you have five or more occupants.
See our full HMO licensing guide for a step-by-step approach, or check your postcode now. You can also use the HMO licence checker to check whether a property may need an HMO licence before you apply.