Mandatory HMO licensing
Mandatory HMO licensing is a national requirement. It applies across all of England to properties that are occupied by five or more people forming two or more separate households. Every council in England must operate this scheme.
It does not depend on the council area or any local designation. If the property meets the occupancy threshold, a licence is required regardless of location.
Read the full HMO licensing guide or use the HMO decision tool to check whether a property may qualify.
Selective licensing
Selective licensing is a local scheme. Councils can choose to designate areas where all privately rented properties need a licence, even if the property is not an HMO. This typically targets areas with high levels of private renting, antisocial behaviour, or poor housing conditions.
Not all councils operate selective licensing, and those that do may only cover certain wards or neighbourhoods rather than the whole borough.
Read the full selective licensing guide or use the selective licensing checker to check by postcode.
Additional HMO licensing
Additional licensing extends HMO licence requirements to smaller shared properties that do not meet the mandatory HMO threshold. For example, a house shared by three or four unrelated people might need a licence under an additional licensing scheme, even though it would not need one under the national mandatory rules.
Like selective licensing, additional licensing is a local decision. Each council decides whether to operate it and which property types it covers.
Read the full additional licensing guide or use the additional licensing checker.
Side-by-side comparison
| Mandatory HMO | Selective | Additional HMO | |
|---|---|---|---|
| Scope | National | Local (council-designated areas) | Local (council-designated areas) |
| Applies to | Shared properties with 5+ occupiers, 2+ households | All privately rented homes in designated areas | Smaller shared properties (e.g. 3-4 occupiers) |
| Legal basis | Housing Act 2004, Part 2 | Housing Act 2004, Part 3 | Housing Act 2004, Part 2 |
| Typical fee range | £500 - £1,500+ | £400 - £900 | £500 - £1,200 |
| Typical duration | Up to 5 years | Up to 5 years | Up to 5 years |
| Maximum penalty | 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 can carry an unlimited fine. | 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 can carry an unlimited fine. | 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 can carry an unlimited fine. |
Fee ranges are approximate and based on current public council data. Always check the latest fees with the relevant council.
How the schemes interact
A council can operate selective licensing and HMO licensing at the same time, but you still need to work out which regime applies to the property itself.
In practice, a licensable HMO is generally dealt with through the HMO licensing regime rather than a separate selective licence. A standard single-family let in a designated area may need selective licensing instead.
The postcode checker will show which scheme types are active in a given area, and the HMO decision tool helps determine whether the property setup triggers HMO rules on top.
How to find out which applies to your property
The practical steps are usually:
- Check the postcode to identify the council and see whether selective or additional licensing is active.
- Open the council page for full scheme details, fees, and official links.
- If the property is shared, use the HMO decision tool to check whether mandatory or additional HMO licensing applies.
- Verify the current position directly with the council before applying.