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Landlord glossaryLicensing

Landlord Licensing

Local authority schemes that require landlords to hold a licence to let property in a defined area. Three types: mandatory HMO licensing (national), additional licensing (smaller HMOs), and selective licensing (non-HMOs). Operating without a required licence carries civil penalties up to £40,000.

Reviewed by Erdem VolkanLast reviewed 16 September 2026How we check facts

Three types
Mandatory HMO, additional HMO, selective
Max civil penalty
£40,000 for offences from 1 May 2026
Rent Repayment Order
Up to two years’ rent for offences from 1 May 2026
Set by
Your local council

Why it matters

What Landlord Licensing means for a landlord

Licensing is the most local of a landlord’s duties: the law is national, but councils decide where schemes apply. A landlord can have every certificate in order and still be letting without a licence because the council designated their street last year. Checking each address at least once a year costs nothing; missing a scheme can cost a civil penalty of up to £40,000 and a Rent Repayment Order.

Worked example

How it plays out

Ravi owns single lets in two London boroughs. One council brings in a selective licensing scheme covering his street from 1 April 2026. He only checks the other council’s website, so the flat stays unlicensed. When the council finds it, he faces a civil penalty of up to £40,000, and his tenants can apply for a Rent Repayment Order, of up to two years’ rent for the period from 1 May 2026. A yearly check of each council’s licensing page would have caught it.
An illustrative example. Names, places and figures are made up.

Common mistakes

Where landlords go wrong

  1. 01Checking licensing once when you buy and never again.
  2. 02Assuming only HMOs need a licence.
  3. 03Letting a licence expire because the renewal was not diarised.
  4. 04Breaching licence conditions, such as occupancy limits, which is a separate offence.

What to do

A short checklist

  • Check each council’s licensing page for every let address.
  • Diary licence renewal dates with plenty of notice.
  • Read the licence conditions and keep evidence you meet them.
  • Check again after any change in occupants or layout.

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.