Property Licensing, Sorted

HMO, selective and additional licensing: what applies where, and the higher cost of getting it wrong.

In this guide

The three types of landlord licensing
Safety certificates you can't skip
A fictional, illustrative case study

A growing patchwork of rules

Licensing depends on the council area as well as the property, and more councils are introducing schemes. Since the Renters' Rights Act, the penalties for getting it wrong are much higher, and the new PRS Database will make unlicensed lets easier for councils to find.

£40,000Maximum civil penalty for licensing offences, up from £30,000

2 yearsRent that tenants or councils can reclaim for an unlicensed let

14 Nov 2027Deadline for every landlord in England to register on the PRS Database

The three schemes landlords need to know

Mandatory HMO licensing. Applies across England to properties let to five or more people forming two or more households who share facilities.
Additional licensing. Councils can extend licensing to smaller HMOs, often three or four sharers, in designated areas.
Selective licensing. Covers all privately rented homes in a designated area, whatever the number of tenants. New schemes continue to be consulted on across England.

Safety Certificates Every Let Needs

Every rented home needs a valid Energy Performance Certificate, and from 1 October 2030 must reach EPC C or have an exemption. Homes with gas appliances need an annual gas safety check by a Gas Safe registered engineer, electrical installations must be inspected at least every five years, and smoke and carbon monoxide alarms are required. Councils check these as part of any licence and can take action on their own.

Check before you exchange

Check licensing when you first look at a property, not after you buy. The council's website or a local landlord association will confirm what applies. Building the licence fee and any required works into your numbers early avoids a costly surprise. Some councils also use planning rules (Article 4 Directions) to restrict new HMOs.

Illustrative example · not a real client

Checking before, not after: a fictional case study

Ahmed was about to offer on a five-bedroom shared house in a London borough, assuming standard buy-to-let rules applied. His broker flagged that the house needed a mandatory HMO licence and that the borough ran additional licensing nearby. Ahmed built the licence fee and a fire-door upgrade into his offer, avoiding a costly surprise after completion.

Names, figures and circumstances are fictional and illustrative only. They do not represent an actual client of Our Mortgage Broker Limited.

Buying a shared or multi-let property?

Speak to a CeMAP-qualified OMB adviser: whole-of-market advice, with any fee confirmed in writing before you proceed. Read more about HMO mortgages.

Start your enquiry 0203 971 1234

More free guides

Email me all 16 guides as PDFs

Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let and commercial mortgages are not regulated by the Financial Conduct Authority. Our Mortgage Broker Limited is authorised and regulated by the Financial Conduct Authority (FRN 944663). Registered in England and Wales, company no. 11358646. Registered office: 23 Berkeley Square, Mayfair, London W1J 6HE. There may be a fee for mortgage advice: we may charge up to 1% of the loan amount, and our typical fee is £500. Your fee agreement sets out the exact fee and when it is payable (at decision in principle, application or mortgage offer); fees are not refundable once due. We usually also receive commission from the lender. This guide is general information only and is not personal advice. Case studies are fictional, illustrative examples and do not represent real clients. Rates, tax and regulatory information are correct as at October 2026 and may change, including at the Autumn Budget on 28 October 2026.