Landlord Licensing

Mandatory HMO licensing is set out in section 61 of the Housing Act 2004: 'Every HMO to which this Part applies must be licensed under this Part unless' a temporary exemption notice or a management order is in force for it. Gov.uk guidance translates the statutory threshold for a large HMO into practical terms: a landlord 'must have a licence if you're renting out a large HMO in England or Wales,' meaning the property 'is rented to 5 or more people who form more than 1 household,' some or all tenants share toilet, bathroom or kitchen facilities, and at least one tenant pays rent. A licence 'is valid for a maximum of 5 years,' must be renewed before it expires, and is granted subject to conditions covering matters like fire safety, gas safety certificates and management standards; operating an unlicensed large HMO can result in an unlimited fine and lets tenants apply for a rent repayment order.

Beyond mandatory HMO licensing, local housing authorities have two further, discretionary tools under Part 3 of the Housing Act 2004. Additional licensing lets an authority extend HMO licensing to smaller HMOs that would not otherwise need one, where 'an area is for the time being designated by the authority under section 56 as subject to additional licensing.' Selective licensing, under section 80, goes further still and can require a licence for any privately rented property (not just HMOs) in a designated area: gov.uk guidance confirms that 'local authorities currently have powers to introduce selective licensing of privately rented homes to address problems in their area,' such as low housing demand, significant anti-social behaviour, poor housing conditions or high levels of deprivation or crime, and the Act requires the authority to be satisfied 'that the area is experiencing a significant and persistent problem caused by anti-social behaviour' or the equivalent low-demand condition before it can designate an area. Since a General Approval came into force in December 2024, local housing authorities no longer need Secretary of State confirmation before implementing a selective licensing scheme of any size, though they must still satisfy all the statutory requirements in Part 3 of the Act, including a consultation with those likely to be affected.