Why it matters
What Additional Licensing means for a landlord
Additional licensing lets a council require a licence for HMOs that fall outside mandatory HMO licensing, typically smaller shared houses. Whether your property needs one depends entirely on your local authority: the same 3-person HMO can be licence-free in one borough and licensable in the next. Renting an unlicensed HMO where a scheme applies is a criminal offence, exposes you to a civil penalty of up to £40,000 (or prosecution), and lets tenants reclaim up to two years’ rent through a Rent Repayment Order. Always check the specific council’s licensing designations before you let.
Worked example
How it plays out
Ella lets a three-bedroom house in a university town to three unrelated sharers. It is below the five-person threshold for mandatory licensing, but her council runs an additional licensing scheme covering smaller HMOs. She checks the council’s website before the tenancy, applies for a licence, pays the fee and meets the conditions on fire safety and waste. A friend with an identical house in a district with no such scheme needs no licence.
Common mistakes
Where landlords go wrong
- 01Assuming a house with three or four sharers never needs a licence.
- 02Checking only mandatory licensing and not the council’s own schemes.
- 03Letting a licence lapse when a scheme is renewed or replaced.
What to do
A short checklist
- Check your council’s website for additional licensing at each address.
- Apply before the property is let as an HMO.
- Diary the scheme end date and the licence expiry.
Sources
Checked against these sources on 16 September 2026. A guide to the rules in England, not legal advice: for a dispute or a possession claim, speak to a solicitor.
