What is additional licensing?
Additional licensing is a power under Section 56 of the Housing Act 2004 that allows local councils to extend HMO licensing beyond the mandatory threshold. Where mandatory licensing only catches HMOs with five or more occupants, additional licensing schemes typically cover smaller HMOs with three or four occupants.
How does it differ from mandatory HMO licensing?
| Mandatory HMO | Additional HMO | |
|---|---|---|
| Applies to | 5+ occupants, 2+ households | 3-4 occupants, 2+ households (typically) |
| Coverage | All of England (automatic) | Only where council has designated a scheme |
| Legal basis | Section 55, Housing Act 2004 | Section 56, Housing Act 2004 |
| Typical fees | £500 – £1,500 | £400 – £1,200 |
Which councils have additional licensing?
As of 2026, approximately 50-70 councils in England operate additional HMO licensing schemes. They are most common 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 sufficiently ineffectively as to give rise to problems, or are likely to give rise to problems.
Before designating a scheme, the council must carry out a 10-week public consultation, demonstrate evidence of the problem, and consider alternatives to licensing. Schemes covering a large proportion of the area 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
- Inability to serve a valid Section 21 notice
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.