Property licensing is used by local authorities to regulate privately rented accommodation and ensure that landlords, property managers and rental properties meet the required safety, management and housing standards. The principal licensing framework is set out under Parts 2 and 3 of the Housing Act 2004.

A property is generally considered a House in Multiple Occupation (HMO) where it is occupied by at least three people forming two or more separate households who share facilities such as a kitchen, bathroom or toilet. Mandatory HMO licensing applies throughout England where a property is occupied by five or more people forming two or more households, regardless of the number of storeys.

Local authorities may also introduce additional licensing schemes covering smaller HMOs that do not fall within the mandatory licensing criteria. As these schemes vary between councils and may apply only within designated wards or areas, landlords should establish the licensing position before letting, purchasing or changing the occupation of a property.

Selective licensing applies to privately rented properties within areas specifically designated by the local authority. Depending on the scheme, this can include properties occupied by a single household, a family or one or two unrelated tenants. The applicable areas, exemptions, fees, licence conditions and application requirements are determined by each council.

As part of the application process, the proposed licence holder and property manager must normally demonstrate that they are fit and proper persons and that suitable management arrangements are in place. The property may also need to comply with requirements relating to fire precautions, smoke and carbon monoxide alarms, gas and electrical safety, room sizes, occupancy levels, refuse arrangements, amenities, repairs and general property management. HMO licences are subject to mandatory conditions, alongside any additional conditions imposed by the relevant local authority.

We provide end-to-end support for mandatory HMO, additional HMO and selective licensing applications. This includes checking whether a property falls within a licensing designation, reviewing the proposed occupancy and accommodation, compiling the required certificates and supporting documents, completing the application and identifying any compliance works that may be required.

Operating a property without the required licence, exceeding the permitted occupancy or failing to comply with licence conditions can result in enforcement action. For offences committed from 1 May 2026, councils may impose civil financial penalties of up to £40,000, pursue an unlimited fine through the courts and, in appropriate cases, tenants or local authorities may seek a rent repayment order.

As licensing requirements differ between local authorities and schemes are regularly introduced, renewed or expanded, each property should be checked against the current requirements of the relevant council before an application is prepared.