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, or browse the council directory.
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:
- Civil penalties of up to £30,000
- Criminal prosecution with unlimited fines
- Rent Repayment Orders of up to 12 months' rent(under current law — the Renters' Rights Act 2025 may extend this to 24 months once commenced)
- Inability to serve a valid Section 21 notice under current law (Section 21 is being abolished under the Renters' Rights Act 2025)
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.
